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The phrase "allowed states" is correct and usable in written English.
It can be used in contexts where you are referring to specific states or conditions that are permitted or authorized within a certain framework or system.
Example: "The software only operates under the allowed states defined in the user manual."
Alternatives: "permitted states" or "authorized states".
Exact(60)
It allowed states to opt out of the Medicaid expansion.
Band-gaps with narrow bands of allowed states within the gap were also considered.
While courts have not allowed states to withhold Medicaid money from Planned Parenthood, they've generally allowed states to redirect family-planning dollars to other health providers.
The court allowed states to decide on guidelines for determining whether a person was mentally retarded.
But in several cases, they have allowed states to make cutbacks.
Savings would shrink if Congress allowed states to keep some or all of the Medicaid expansion.
The law also allowed states to establish their own goals for improving graduation rates.
Administration officials said the program allowed states to cover children under age 19.
But federal officials allowed states to game the system, which led inevitably to fakery.
Because the law allowed states wide latitude, the goals for graduation rates vary widely.
But in later rulings, the Supreme Court has allowed states to restrict access to abortion.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com