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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The federal government and nearly every state with an income tax offer the student loan interest deduction. This provision allows taxpayers to subtract interest paid on student debt from their taxable income to help families reduce the cost of borrowing for higher education. The maximum federal deduction, $2,500, has not changed since 2001, but between 2007 and 2016, student loan balances... Read More
A week after Hurricane Harvey made landfall in southeastern Texas, at least 21 states had sent emergency response teams and equipment to help. Such interstate aid is coordinated through the Emergency Management Assistance Compact (EMAC), a mutual aid agreement among states. These cooperative commitments represent another aspect of the “all hands on deck” approach that the federal... Read More
The share of states’ revenue made up by federal dollars rose in fiscal year 2015, capturing the first full year of expanded Medicaid eligibility in some states. The federal government provided 31.9 percent of 50-state revenue in fiscal 2015—the third-largest share on record—up from 30.7 percent in fiscal 2014. Read More