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State Fiscal Flexibility: End of Tax Cut Prohibition

This act removes the prohibition on states and territories from lowering their taxes, even if they received coronavirus relief funds. This means local governments have more freedom in tax policy, potentially affecting the taxes citizens pay. However, these funds still cannot be used for pension funds.
Key points
States and territories can now lower taxes, even if they received federal aid funds.
Federal funds still cannot be used to deposit into pension funds.
The changes are effective retroactively, as if included in the American Rescue Plan Act of 2021.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 117_S_743
Sponsor: Sen. Crapo, Mike [R-ID]
Process start date: 2021-03-15
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

State Fiscal Flexibility Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_743.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-03-15.

What are the main provisions?

Key points include:

  • States and territories can now lower taxes, even if they received federal aid funds.
  • Federal funds still cannot be used to deposit into pension funds.
  • The changes are effective retroactively, as if included in the American Rescue Plan Act of 2021.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Crapo, Mike [R-ID].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Economy Local Government