federal aid to states Archive
Alabama Federal Deductibility Issues & Solutions
February 11, 2022
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TweetShareSharePin0 Shares Alabama lawmakers are acting to ensure that federal relief from the American Rescue Plan Act (ARPA) does not increase tax liabilities in the state. Senate Bill 152, which addresses the issue, recently passed and has been referred to the Ways and Means Committee. This unusual issue is a consequence of Alabama offering a
American Rescue Plan Treasury Guidance
January 28, 2022
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TweetShareSharePin0 Shares The Department of the Treasury has finalized its rule governing State and Local Fiscal Recovery Funds (SLFRF), the $350 billion state and local governments received under the American Rescue Plan Act (ARPA). State policymakers should have three key takeaways: If states want to use the funds to replenish their unemployment compensation (UC) trust
Federal Judge Rules Against American Rescue Plan Tax Cuts Mandate
September 27, 2021
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TweetShareSharePin0 Shares Kentucky and Tennessee won an important legal victory Friday when a federal court ruled that the American Rescue Plan Act (ARPA)’s restrictions on state fiscal autonomy were unconstitutional and enjoined (blocked) the enforcement of those provisions against both states. Specifically, Judge Gregory Van Tatenhove held that the ARPA provision, which limited states’ authority
State Unemployment Trust Funds, 2021
September 22, 2021
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TweetShareSharePin0 Shares Key Findings States have paid out $175 billion in unemployment benefits since the start of the pandemic, with the federal government providing an additional $660 billion. Taking debt into account, state trust funds now have a negative aggregate balance of -$11 billion and are $115 billion shy of minimum adequate solvency levels. States
