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.