Federal Judge Blocks Tax Mandate in Pandemic Relief Package

Rules that it is a “federal invasion of State sovereignty.”

 In March of this year, 13 states sued Congress on the grounds that it exceeded constitutional authority in part of the American Rescue Plan. The measure in question, a mandate that would have stopped states from using funds intended for COVID-19 relief to offset tax cuts, was deemed unconstitutional in the Northern Alabama U.S. District Court last week.

“The Tax Mandate’s restriction on direct or indirect state tax cuts pressures States into adopting a particular — and federally preferred — tax policy,” Federal Judge Scott Coogler wrote. “The inherent ambiguity in the text of the mandate may disincentive the plaintiff states from considering any tax reductions for fear of forfeiting ARPA funds. This is a federal invasion of State sovereignty.”

As the Lord Leads, Pray with Us…

  • For federal district court and appellate judges as they determine and decide cases regarding state and federal jurisdiction and responsibility.
  • For state, and local officials as they oversee the budgets and operations of their communities.
  • For the president to seek God’s wisdom as he implements his agenda nationally.

Sources: The Hill, The Herald Journal


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