States have always relied on federal dollars—which now account for about one-third of state budgets—to help bolster their balance sheets, but these funds can flow in boom-bust cycles, as reflected in the unprecedented levels of aid sent to states in response to the COVID-19 pandemic. Pew conducts research to illuminate the impact of the volatility of federal funding and nonrecurring federal revenue on state budgets and helps states better account for and manage their federal funds.
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