House Republicans, eager to jump-start job-creation efforts after the debt-ceiling battle, are eyeing a top reform priority among state and local government groups as part of their plans.

House Majority Leader Eric Cantor, R-Va., said in a memo to House Republicans on Monday that he is hoping to swiftly ax the 3% withholding rule for federal, state, and local governments. The rule becomes effective Jan. 1, 2013, and could cost some states millions of dollars based on how many contracts they have outstanding with vendors.

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