Okay, so it will be on a 1099-G, if it meets the reporting limit.

Not getting a 1099-G, is not the same as not reporting it. What you just learned by knowing if it is reportable, that would be on a 1099-G, is the nature of the payment and how it would be handled. You can see the 1099-Misc questions for the people whose states gave them funds under the guise of rebate or supplement. The Governmental payout for services is described by the IRS for how to handle the funds.

"Unlikely that FAQ issued by IRS in November 2021 is good authority for a program enacted in Massachusetts in December 2021."

Agree to disagree. That reference is the Feds' commentary on something they were involved with, and meets what was asked here.