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WATCH: Senate Finance Committee holds hearing on tax fraud

The Senate Finance Committee held a hearing on tax fraud on Tuesday.

Watch the hearing in the player above.

The president is pushing even more ambitious government spending, proposing a combined $4 trillion of investments in infrastructure, families and education to be funded by higher taxes on corporations and the wealthy. Some of that funding would build on the child tax credits and state and local government money that were part of the relief package.

Guidance from the Treasury Department listed broad categories for spending the aid. State and local governments can use the money for public health expenses. They can also offset harm from the downturn to workers, small businesses and affected industries. Money can replace lost public sector revenues. Essential workers can qualify for premium pay, and investments can be made in water, sewer and broadband internet.

But Treasury has also placed restrictions. Officials said the funds should not be used by state and local governments to cut taxes, pay down debt or bolster reserve funds.

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