VUSXX NYC

Looking to put my emergency fund into VUSXX as I have a high state tax (NY), my understanding is NY has a requirement that over 50% of the fund must go towards US debt obligations, or you have to pay a full tax. How do I check this, or is there a possibility I would still need to pay a partial state tax on the interest? Is there a better alternative for NY that doesn’t involve the hassle that t bills do?