By David Lawder

WASHINGTON, (Reuters) – The $350 billion of coronavirus relief money for state and local governments have allowed U.S. municipalities to respond more quickly to changing COVID-19 pandemics. Janet Yellen, U.S. Treasury Secretary said Wednesday.

In remarks she prepared to deliver to the U.S. Conference of Mayors Yellen stated that state and local governments had been inventive in using funding from the American Rescue Plan last year to address different needs at different times.

“This is, I believe, some of the $350 billion that did this: Omicron didn’t discover our cities broke and broken when it started to spread; it found them ready to respond,” she explained, referring specifically to the State and Local Fiscal Recovery Fund.

“This was not a one-time burst that can only be used in specific ways. It required sustained funding and our Treasury team worked hard to ensure you have as much flexibility as possible,” Yellen said.

There are many local examples she cites, including $1,000 sign bonuses to new teachers in Columbus child-care centres, Ohio to Hawaii reverse its decision to furlough 10,000 state workers.

Minnesota authorized funds for more than $80million in health care needs, including rapid COVID testing and emergency surge staffing at hospitals. St. Louis, however, used $58 million of its allocated funds to help residents avoid evictions or homelessness.

Elle said that funding from the American Rescue Plan allowed cities to go beyond fighting fires and “start building a better post COVID world.”

Despite contentious congressional negotiations that had clouded its future, Yellen spoke with optimism about the Biden Administration’s sweeping social and climate spending bill called “Build back Better”.

“While we don’t know the final form this will take, it will revolutionize how we care for children in this country, invest in climate change, and overhaul the international tax system to ensure corporations pay their fair share,” Yellen said.