Let States Cut Taxes Act
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.
To amend the Social Security Act to remove the restriction on the use 
  of funds under the Coronavirus State Fiscal Recovery Fund to offset 
             reductions in State or territory tax revenues.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Let States Cut Taxes Act''.

SEC. 2. REMOVAL OF RESTRICTION ON USE OF FUNDS UNDER CORONAVIRUS STATE 
              FISCAL RECOVERY FUND.

    (a) Removal of Restriction.--Paragraph (2) of subsection (c) of 
section 602 of the Social Security Act, as added by section 9901 of the 
American Rescue Plan Act of 2021 (Public Law 117-2), 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.--Such section is further amended--
            (1) in subsection (d)(2)(A), by striking ``, including, in 
        the case of a State or a territory, all modification 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.
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Let States Cut Taxes Act
To amend the Social Security Act to remove the restriction on the use of funds under the Coronavirus State Fiscal Recovery Fund to offset reductions in State or territory tax revenues.
Let States Cut Taxes Act
Rep. Bishop, Dan