Pew's Fiscal Federalism Initiative is currently exploring the impact of federal tax and spending changes on the states by investigating:
- The sensitivity of state budgets to changes in federal spending;
- The interconnectedness of federal and state tax policies;
- How federal regulatory policy has a fiscal impact on states; and
- The impact of federal tax and spending policies on state economies and the potential indirect effect on state finances.
Our original, non-partisan research gives both state and federal policy makers the information they need to make informed fiscal decisions.
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This report is the first in a series, Fiscal Federalism in Action, that will describe how the federal-state fiscal relationship works in several policy areas to which both levels of government make significant financial contributions. Read More
The deduction for state and local sales taxes is among a package of expired temporary federal tax provisions. If the deduction is not retroactively extended, states with the highest claim rates would be likely to feel the biggest effects. Read More
Total federal grants to states are 18 percent above pre-recession levels for federal fiscal year 2014, after adjusting for inflation. (See "Federal Grants to States Up Since 2008.") The increase since fiscal 2008 was driven almost entirely by growth in Medicaid and other health programs, such as the Children's Health Insurance Program. Medicaid is by far the largest grant to states. (See... Read More