Bloomberg Tax
Nov. 12, 2021, 2:45 PM

Final Stimulus Spending Guidance for States Hits Budget Review

Sam McQuillan
Sam McQuillan

State governments may soon receive the final clarity they are seeking on a spending restriction tied to the $350 billion distributed as part of the federal government’s pandemic relief effort.

The White House regulatory review office indicated on Friday that it is reviewing final rules. The guidance (RIN 1505-AC77) is tied to a provision in the American Rescue Plan Act of 2021 (Pub. L. No. 117-2) that forbids states from using the funding to replace revenue lost from tax cuts.