WASHINGTON (Reuters) – The Obama administration on Thursday rescinded $1.195 billion intended to fund the development of high-speed rail in Ohio and Wisconsin and said it will redirect the funds to “other states eager to develop high-speed rail corridors” in the United States.

“I am pleased that so many other states are enthusiastic about the additional support they are receiving to help bring America’s high-speed rail network to life,” Transportation Secretary Ray LaHood said in a statement.

WASHINGTON, Dec 8 (Reuters) – U.S. states are not pulling
in enough revenue to make up for a shortfall that will emerge
when the federal stimulus plan ends, with nearly a third of
them reporting that gaps are already emerging in their budgets,
report on Wednesday by a state legislatures’ group found.

The federal stimulus plan passed last year known as the
American Recovery and Reinvestment Act, began winding down this
summer and many of the measures included in the plan to help
states will end this month.

WASHINGTON, Dec 1 (Reuters) – A proposal by President
Barack Obama’s deficit commission to tax the interest paid on
state and local government bonds drew criticism on Wednesday
that it would raise costs for states — just as they’re
struggling with big budget gaps.

In its revised plan for balancing the U.S. budget released
on Wednesday, the National Commission on Fiscal Responsibility
and Reform suggested generating revenue by ending the income
tax exemptions of interest on municipal bonds sold in the
future.

WASHINGTON, Dec 1 (Reuters) – The recession that began in
2007 may have stopped pummeling the economies of U.S. states,
but a report released on Wednesday shows they will remain
bruised and bleeding for at least another year.

“After two of the most challenging years for state budgets,
fiscal 2011 will present a slight improvement over fiscal
2010,” the report from the National Governors Association and
National Association of State Budget Officers said.

WASHINGTON, Dec 1 (Reuters) – The recession that began in
2007 may have stopped pummeling the economies of U.S. states,
but a report released on Wednesday shows they will remain
bruised and bleeding for at least another year.

“After two of the most challenging years for state budgets,
fiscal 2011 will present a slight improvement over fiscal
2010,” the report from the National Governors Association and
National Association of State Budget Officers said.

WASHINGTON, Nov 16 (Reuters) – Tax legislation being
crafted in the U.S. Congress will also continue the popular
Build America Bonds program that is set to end next month, a
key Senator said on Tuesday.

In the Senate, the Finance Committee, under the leadership
of Chairman Max Baucus, has taken the lead in drafting
legislation to extend individual and business tax measures that
have expired this year.

WASHINGTON (Reuters) – The fiscal pain caused to U.S. states by the country’s grim employment situation will soon grow more acute as a financing break for paying jobless benefits expires and the federal government stops sending long-term unemployed people additional money.

The end of the stimulus programs will push up unemployment costs in states saddled with budget deficits. Thirty three states are already forecasting gaps for fiscal 2012, which starts in July. Because all states except Vermont cannot run deficits, they must cut spending, after years of already slashing programs.

WASHINGTON (Reuters) – The U.S. Transportation Department warned two governors-elect that federal money allocated to building high-speed passenger rail lines in their states cannot be used to pay for other infrastructure projects.

Transportation Secretary Ray LaHood, in letters to Ohio Governor-elect John Kasich and Wisconsin Governor-elect Scott Walker, both Republicans, said the two states would simply lose funding if they chose not to participate in the rail project.

WASHINGTON, Nov 3 (Reuters) – Voters in many U.S. states on
Tuesday made clear their distaste for tax hikes, voting to
limit how their states may raise revenue and changing how some
budget decisions are made.

Still, voters worked to preserve education funding,
approving billions of dollars in public debt for schools.

WASHINGTON (Reuters) – The Obama administration is sending more than $3 billion in infrastructure grants to U.S. states this month and announced most of the awards on Thursday, just days before the pivotal mid-term elections.

But the campaign tradition followed by both parties of “bringing home the bacon” of grants to boost incumbents’ popularity may not have the same impact as in previous elections with many voters professing antipathy toward government spending.