WASHINGTON, July 29 (Reuters) - President Joe Biden on Thursday (Jul 29) urged local governments to pay people to get vaccinated against COVID-19, and set new rules requiring federal workers to provide proof of vaccination or face regular testing, mask mandates and travel restrictions.

The measures are Biden's latest attempt to spur reluctant Americans to get vaccinated as the Delta variant of the coronavirus surges nationwide, infecting unvaccinated people in particular.

The United States lags other developed countries in vaccination rates, despite having plenty of free vaccines on hand. White House efforts to urge the hesitant to get vaccinated have hit a wall of anti-vaccine sentiment, misinformation, and political division.

Biden's decision to require millions of federal workers and contractors to show proof of vaccination is a departure from a previous opposition to so-called vaccine passports. It shows the White House taking a tougher stance towards circumstances within Biden's control as the virus spreads.

"Right now too many people are dying or watching someone they love," dying, Biden told reporters at the White House.

"With freedom comes responsibility. So please exercise responsible judgement. Get vaccinated for yourself, the people you love, for your country."

The United States lags other developed countries in vaccination rates, despite having plenty of free vaccines on hand. White House efforts to urge the hesitant to get vaccinated have hit a wall of anti-vaccine sentiment, misinformation, and political division.

Biden's decision to require millions of federal workers and contractors to show proof of vaccination is a departure from a previous opposition to so-called vaccine passports. It shows the White House taking a tougher stance towards circumstances within Biden's control as the virus spreads.

"Right now too many people are dying or watching someone they love," dying, Biden told reporters at the White House.

"With freedom comes responsibility. So please exercise responsible judgement. Get vaccinated for yourself, the people you love, for your country."

According to the Centers for Disease Control and Prevention (CDC), roughly 163.8 million people in the United States are fully vaccinated out of a population of some 330 million.

The federal government is the largest employer in the United States and Biden's move could serve as an example for private businesses and other institutions to follow as they assess getting workers back into offices and work places.

Government employees who do not show they have been vaccinated will be subject to weekly or twice-weekly COVID-19 tests and restrictions on official travel.

The United States has about 2.18 million civilian employees and 570,000 other US Postal Service (USPS) workers, according to 2020 data. The US government employed 3.7 million contract employees as of 2017, a New York University study found. Postal workers are not affected by the new rules.

Biden also directed the Defense Department to look into "how and when" it will require members of the military to take the vaccine.

Meanwhile state, local and US territorial governments will be able to dip into US$350 billion in coronavirus aid to provide US$100 payments for every newly vaccinated American to boost COVID-19 inoculation rates, the US Treasury Department said.

"I know that paying people to get vaccinated might sound unfair to folks who have gotten vaccinated already. But here's the deal: if incentives help us beat this virus, I believe we should use them," Biden said.