US President Joe Biden is calling for state, local and US territorial governments to provide $US100 ($135) payments for every newly vaccinated person to boost COVID-19 inoculation rates, the US Treasury Department says.

The Treasury said in a statement that such incentives are an allowable use of funds from the $US350 billion ($473 billion) in aid granted to state, local, territorial and tribal governments under the American Rescue Plan Act.

The department added that it would provide technical assistance in using these funds to support increased vaccinations.

The Treasury also said it was expanding a tax credit that employers could claim for wages paid to employees to give them paid time off to get vaccinated or to assist family members and certain other individuals with COVID-19 vaccinations.

“Today, the president is calling on state, territorial, and local governments to provide $US100 payments for every newly vaccinated American, as an extra incentive to boost vaccination rates, protect communities and save lives,” Treasury said in a statement.

Earlier on Thursday, New York City Mayor Bill de Blasio announced that anyone getting their first COVID-19 vaccine shot at a city-run site would receive a $US100 payment.

President Biden is expected to deliver remarks on Thursday afternoon in America on his vaccination strategy and the status of the virus in the United States.

It comes after sweeping mask mandates were made in Washington DC.

Masks will be required indoors in Washington DC for everyone two years and older, Mayor Muriel Bowser said on Thursday.

The mandate, set to come into force on Saturday, will put the US capital in line with updated guidance that the Centers for Disease Control and Prevention.

Earlier this week, the Centers for Disease Control and Prevention recommended that even vaccinated American citizens should wear face masks indoors in areas of high transmission of COVID-19, in an effort to contain the rapid spread of the Delta variant of the coronavirus.