Mendoza says Illinois repaid federal government COVID loan early, saving at least $ 80 million – NBC Chicago

Illinois Comptroller Susana Mendoza announced this week that the state had paid off a $ 2 billion loan two years earlier than expected, likely saving it more than $ 80 million in interest payments.

The Mendoza office made the announcement on Wednesday, saying it made the last payment of $ 302 million on the loan.

The state took the loan from the U.S. Federal Reserve’s municipal liquidity facility and used the money to help cover expenses during the early stages of the COVID-19 pandemic.

“With this prepayment, we are taking another important step towards restoring fiscal stability and predictability in Illinois,” Mendoza said in a statement.

Governor JB Priztker, Speaker of the House Chris Welch and Speaker of the Senate Don Harmon reached a deal with the Mendoza office in May 2021 to use higher-than-expected income to prepay the loan.

According to the press release, the loan was used to cover the state’s medical bills during the pandemic. The loan was repaid using strictly state revenues, and no federal stimulus money was used for payments, officials said.

Originally, the state intended to make the final payments by December 2023, but higher than expected revenues from corporate income tax and sales tax revenues have allowed to repay the loan sooner.

Dorothy H. Lewis