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.
Research & AnalysisView All
The tax law passed by Congress in 2017 placed a $10,000 cap on the state and local tax (SALT) deduction, which allows filers who itemize to subtract state and local property and sales or income taxes from their federal taxable income. Policymakers across the country are examining this new cap’s potential impact on states, but much of that attention has concentrated on a handful of coastal... 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 and mix 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... Read More
About two-thirds of federal grant dollars to the states—67 percent—were for Medicaid in 2017, by far the largest category of grants. While funding for this health care program for low-income families and individuals topped the list in all but one state, the mix of funding among the other grant categories varied from state to state. Read More