In a letter to Ducey on Tuesday, Deputy Treasury Secretary Adewale Adeyemo expressed concern over the creation of those two programs, which are funded with relief dollars from the American Rescue Plan.
“We are concerned that two recently created Arizona grant programs undermine evidence-based efforts to stop the spread of COVID-19,” wrote Adeyemo.
CNN has reached out to the Arizona governor’s office for comment.
This warning comes as Ducey has made efforts to prohibit mask mandates in schools, even as public health experts have promoted masks as an important mitigation measure amid the pandemic.
In Tuesday’s letter, Adeyemo notes that the purpose of the state and local recovery funds is to “mitigate the fiscal effects stemming from the COVID-19 public health emergency, including by supporting efforts to stop the spread of the virus.”
“A program or service that imposes conditions on participation or acceptance of the service that would undermine efforts to stop the spread of COVID-19 or discourage compliance with evidence-based solutions for stopping the spread of COVID-19 is not a permissible use” of those funds, the treasury official added.
Arizona has 30 business days to respond to the letter with information about how it will “remediate the issues identified with the two programs,” Adeyemo said, adding that failure to respond or resolve the issues could result in potentially losing the funds.
CNN’s Paul LeBlanc contributed to this report.