How can Congress best help state and local governments?

The new Biden administration and Congress will likely prioritize helping states and localities hit hard financially by the COVID-19 pandemic. But the question of how the federal government can best support spending at a local and state level —­ through tax deductions for individuals, or via direct grants, for example — is a long-standing one. Which policies are the most effective? What about unintended consequences and incentives?

On January 13, the Future of the Middle Class Initiative at Brookings hosted an event with leading policy experts from the Urban Institute, the Economic Policy Institute, the Niskanen Center, and Brookings. These scholars presented different options and ideas for state and local funding reform and participated in a panel discussion on the different advantages of their respective plans.

Viewers submitted questions via email to [email protected] or via Twitter using the hashtag #SALTdeductions.