federal revenue sharing (United States)

Federal revenue sharing is a system where the U.S. federal government distributes a portion of its tax revenue to state and local governments. The goal is to provide financial support to help fund public services like education, infrastructure, and health care. Instead of strict grants with specific purposes, revenue sharing offers more flexibility for governments to address local needs. This approach aims to promote cooperation between levels of government, ensure fair distribution of resources, and reduce disparities across regions. It’s a way for the federal government to support local priorities directly with shared tax revenues.