State Fiscal Flexibility Act of 2021

Bill: 117-s-743
Sponsor: full_name: Sen. Crapo, Mike [R-ID]
Introduced: 2021-03-15
Policy area: Government Operations and Politics
Subjects: Appropriations

Cardiovascular and respiratory health

Emergency medical services and trauma care

Income tax credits

Income tax deductions

Income tax rates

Infectious and parasitic diseases

State and local finance

State and local government operations

State and local taxation
Latest action: action_date: 2021-03-15
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-03-15
action_desc: Introduced in Senate
text: <p><strong>State Fiscal Flexibility Act of 2021</strong></p> <p>This bill removes a prohibition on states and territories using COVID-19 (i.e., coronavirus disease 2019) relief funding under the American Rescue Plan Act of 2021 to offset a reduction in revenue resulting from a reduction in taxes or a delay in the imposition of a tax or tax increase. </p>

tv_txt: II 117th CONGRESS 1st Session S. 743 IN THE SENATE OF THE UNITED STATES March 15, 2021 Mr. Crapo (for himself, Mr. Grassley , Mr. Cornyn , Mr. Portman , Mr. Scott of South Carolina , Mr. Lankford , Mr. Daines , Mr. Young , Mr. Risch , and Mr. Thune ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title VI of the Social Security Act to remove the prohibition on States and territories against lowering their taxes.

1. Short title This Act may be cited as the State Fiscal Flexibility Act of 2021 . 2. Removal of restriction of use of Coronavirus State Fiscal Recovery funds (a) In general Paragraph (2) of section 602(c) of the Social Security Act, as added by section 9901 of the American Rescue Plan Act of 2021, is amended to read as follows: (2) Further restriction on use of funds No State or territory may use funds made available under this section for deposit into any pension fund. . (b) Conforming amendments Section 602 of such Act is further amended— (1) in subsection (d)(2)(A), by striking , including, in the case of a State or a territory, all modifications to the State's or territory's tax revenue sources during the covered period ; (2) in subsection (e), by striking such subsection, and all that follows through the period and inserting such subsection. ; and (3) in subsection (g)— (A) by striking paragraph (1); and (B) by redesignating paragraphs (2) through (7) as paragraphs (1) through (6), respectively. (c) Effective date The amendments made by this section shall take effect as if included in the enactment of the American Rescue Plan Act of 2021.