April 14, 2021
PUBLIC FINANCE > Budget > FY 2022

Letter to United States Department of the Treasury

The American Rescue Plan Act of 2021, which became law when President Biden signed H.R. 1319 on March 11, will provide approximately $350 billion to state and local governments to mitigate the economic impact of the pandemic. Section 602(c)(2)(A) restricts states from using the funds “to either directly or indirectly offset a reduction in the net tax revenue” of the state. We write to you to ask for greater clarification on how this provision of the bill will be interpreted and enforced.