Court documents say the applications resulted in the theft of $133,802.
Kentucky lawmakers gathered in Frankfort on Tuesday to discuss funds from the American Rescue Plan Act and how they should be spent in the commonwealth.
Through the EDA's Statewide Planning program, all 59 states and territories were given the opportunity to apply for a $1 million grant.
Residents who lost income during the coronavirus pandemic and need help can contact any Neighborhood Place to apply for the Eviction Prevention Program.
Undergraduates who completed a Free Application for Federal Student Aid (FAFSA) and registered for spring semester classes automatically receive the award, the university said.
The leftover money could be used to help the homeless and provide more clean-up downtown.
The change applies only to bars, restaurants and other establishments with licenses to sell liquor by the drink, not to stores that sell packaged beer, wine and liquor.
City leaders say the extra money is useful but not a cure-all to economic woes caused by COVID-19.
Now the district is urging lawmakers to make sure more money gets to schools soon.
McConnell's office also said Kentucky nursing homes have received about $175 million from the CARES Act.