Commonwealth Policy Center

As part of the most recent COVID-relief bill, Congress sent $350 billion to state and local governments. That’s a lot of money to help the states as they try to alleviate the burden on governmental entities that have been stretched thin and also help their ailing economies recover. But as with all federal monies there were some big strings attached. Congress explicitly prohibited the states from using the funds to cut taxes. Thats’s right. It’s ok to spend the money in any number of ways, but the states couldn’t use it for tax relief for the working class. The $1.9 trillion relief package was controversial enough but a federal government mandate to spend and not cut taxes is a tough pill to swallow for fiscally responsible Americans.