The federal-state relationship is in the spotlight because of enormous fiscal challenges facing all levels of government. Tight budgets and a weak recovery in the wake of the Great Recession are leading to discussions about appropriate amounts of public spending and how costs should be allocated among local, state, and national government. Federal and state policy makers require solid data and analysis to engage in a meaningful debate and truly understand how their tax and spending policies affect other levels of government.
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The federal government and the states provide substantial resources for higher education, through direct spending and tax provisions that reduce revenue. This collection of resources explores how post-secondary education is funded at both levels of government and how that support varies by state. Read More
The U.S. government spends defense dollars in every state through purchases of military equipment, wages for service members and civilians, pension payments, health care services, and grants to states. But the size of those investments varies substantially across the states, so changes in defense spending will affect them differently, and the impacts will depend on which programs and operations... Read More
About a year ago, federal policymakers permanently extended the American opportunity tax credit (AOTC), the largest federal tax provision available to help offset the cost of higher education for students and their families. Read More