Revenue sharing

Revenue sharing, return of U.S. tax revenues to the state and local governments. The State and Local Fiscal Assistance Act of 1972, supported by President Richard M. Nixon, appropriated $30.1 billion for this financial aid. No conditions were attached to state uses; local governments chose from 7 broad categories. The program, representing a political revolution in the relationship between the federal and state governments, was renewed in 1976 and 1980.