The Ige administration has tentatively budgeted $66.6 million in federal stimulus funds to help the jobless and local restaurants at the same time.
After 26 deaths, the Utah-based company agreed to transfer control of the troubled Hilo facility to the state.
Kim cites VA inspection report that found lack of adequate infection control and other lapses.
A state review says lapses in protocols and staff complacency likely led to the surge in infections.
Hawaii County Mayor Harry Kim has called for the nursing home operator to be removed.
Department of Public Safety officials say the first mass testing of a state prison found no cases among the convicts.
He was a nisei World War II veteran who died in the COVID-19 outbreak at the Yukio Okutsu State Veterans Home.
The state and neighbor island counties are required to expend nearly $863 million by the end of the year — or they will lose it.
So far 68 residents and 30 staff have tested positive for COVID-19 at the skilled nursing facility.