Administration Sued by 13 States Over Relief Plan

They allege that spending restrictions are “overreaching.”

Thirteen state attorneys general sued President Biden’s administration over an element of the recently enacted $1.9 trillion coronavirus relief law that prevents states from using government aid to lower taxes.

The lawsuit, which was filed in the Northern Alabama U.S. District Court, asks judges to strike down a provision in the American Rescue Plan that prohibits state governments from using roughly $195 billion in federal funding to “either directly or indirectly offset a reduction in the net tax revenue.” The restriction could apply through 2024.

In a statement, the attorney general for West Virginia, who co-led the lawsuit, said, “Never before has the federal government attempted such a complete takeover of state finances. We cannot stand for such overreach.”

Alabama, Alaska, Florida, Iowa, Kansas, Montana, New Hampshire, Oklahoma, South Carolina, South Dakota, Utah, and West Virginia all signed the lawsuit. Ohio filed a separate action earlier in March.

As the Lord Leads, Pray with Us…

  • For the judges of the district court as they determine whether the federal mandate is an infringement of state financial integrity.
  • For the state attorneys general as they seek to protect the rights of their states.

Sources: Fox News, Deseret News, Law360


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