This article examines the impact of COVID-19 pandemic shocks on trust in government and institutions and investigates how government interventions can mitigate it. We analyze data from the first wave of the "Values in Crisis" project, covering 18 countries worldwide. These surveys were conducted mostly in 2020 amid major social and economic disruptions. Our main finding is that both aid packages and interpersonal trust play a crucial role in counteracting the adverse effects of the unprecedented shocks caused by the COVID-19 pandemic on institutional trust. Additionally, we find that employment protection programs contribute to sustaining trust in government and institutions.