Federal money comes with strings attached. If you accept COVID money then it only stands to reason you shouldn't cut your taxes and use the federal money to make up the difference. If you want to cut your taxes then don't accept federal COVID money and you can cut to your heart's content.
Biden will remove (or maybe he already has) the Trump limit for deducting local taxes from the federal tax filing. That way Red states will be paying higher federal taxes that will probably still go to bailing out the Blue states.