As Covid surge sparks alarm in US, Trump admin's big step worries local governments. What you need to know
Amid the surge in Covid cases, the US Treasury is seeking to get back the COVID-19 pandemic relief funds from hundreds of local governments that received millions of dollars but never complied with requirements to report how they used the money. The state, local, territorial and tribal governments received $350 billion in funds from the federal government as part of the American Rescue Plan approved by Congress and former President Joe Biden in 2021.
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The local governments were given time till the end of 2024 to obligate the money for specific projects. The governments were supposed to file either quarterly or annual progress reports, depending on their population and how much money they received. Though most of them complied, but around 1,000 mostly smaller governments had failed to file any reports with the Treasury detailing how they used a total of $139 million, according to an analysis by the U.S. Government Accountability Office, reports news agency AP.
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US wants back Covid relief funds
According to a GAO report released last week, the Treasury sent notices to the local governments seeking to recoup the money. As of June 24, 740 local governments filed reports and they are under no obligation to repay their funds, the Treasury said in a letter attached to the GAO report.
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Thirteen governments returned their funds to the Treasury. But that still left 235 local governments that had never filed a report nor returned their pandemic relief funds.
The Government Accountability Office told The Associated Press it does not have a list of the specific governments that failed to meet the reporting requirements. Meanwhile, the Treasury Department has not responded to AP's request for the names of the 13 governments that returned their funds, or those that have yet to report how the money was used.
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New Covid variant symptoms seen in US amid surge in summer wave: Check symptoms and states at the highest risk
Covid cases see surge in US
The Centers for Disease Control and Prevention (CDC) has noted that COVID is resurging in the US due to fading immunity and the emergence of new variants, notably NB.1.8.1 – the Nimbus strain. The Covid infections are rising in most of the states in US, as per CDC reports, with 25 showing clear increases, particularly in Florida, Texas, and California, which is linked to declining immunity and fresh variants like NB.1.8.1 (Nimbus) and XFG.
The Nimbus strain, also known as NB.1.8.1, is a dominant strain in major US states. This strain, known for sore throat ('razor‑blade throat'), was first detected in March 2025. This particular strain has become the prevailing strain nationwide, known for its high transmissibility and causing sore and painful throats. However, the strain isn't linked to more severe illness.
Also, there is a twice-yearly seasonality pattern that has been noted, this means Covid cases are peaking in summer and winter. Experts deduce, this likely results from viral evolution and immunity decay.
Additionally, summer heat leads people indoors, where air conditioning tends to reduce ventilation and raise transmission risk. Topping that, post-holiday travel and gatherings, especially around July 4, have historically fueled seasonal spikes.
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How can you stay safe during Covid?
Vaccination and boosters:
Stay up to date with COVID-19 vaccinations amid a rise in Covid infections. Updated boosters are especially recommended for older adults and anyone whose last dose was more than six months ago.
Wear masks in crowded places:
Masks remain crucial in crowded or poorly ventilated indoor spaces like public transit, airports, and large gatherings. Always opt for high-quality masks such as N95 or KN95.
Testing and Isolation:
Keep rapid antigen tests on hand. Test immediately if symptoms appear or after potential exposure. If you test positive, isolate for at least 5 days. On days 6–10, wear a mask when around others to reduce transmission risk.
Ventilation and Outdoor choices:
Improve indoor air quality by using fans, opening windows, and running HEPA filters. Whenever possible, choose outdoor settings for meals, events, and gatherings instead of staying indoors.
Hygiene and Symptom Awareness
: Return to the basics of prevention: wash hands regularly or use hand sanitizer, and avoid touching your face after contact with shared surfaces. Monitor for symptoms such as sore throat, fever, or fatigue—and take action promptly if they arise.
FAQs
What is causing the recent surge in Covid cases in the US?
The surge is attributed to increasing temperatures, fading immunity, and the emergence of new variants, particularly the NB.1.8.1 strain.
Which states are currently experiencing a rise in Covid cases?
About 25 US states are seeing a rise in infections
What is the amount of pandemic relief funds distributed to local governments?
A total of $350 billion in funds was distributed to state, local, territorial, and tribal governments as part of the American Rescue Plan.
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