Another Judge Rules Against Curb on State Use of Relief Cash (1)

Nov. 16, 2021, 4:12 PMUpdated: Nov. 16, 2021, 7:53 PM

The federal government can’t prevent states from using congressional Covid-19 relief to pay for tax cuts, a third federal judge has ruled.

The U.S. District Court for the Northern District of Alabama, Western Division, on Monday ruled in favor of West Virginia and a dozen other states, permanently enjoining the U.S. Treasury from clawing back American Rescue Plan Act funds that states may use directly or indirectly to offset revenue losses from a tax cut. The court also said that further guidance from Treasury, which was sent to the White House for review last week, can’t change the ...

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