Arizona Sues U.S. Treasury Over Covid-19 Relief Tax Restrictions

March 25, 2021, 6:51 PM

Arizona Attorney General Mark Brnovich is asking a court to prevent enforcement of federal Covid-19 relief funding restrictions that could stop states from using the money to cut taxes, in a lawsuit filed Thursday.

The complaint against the U.S. Department of Treasury argues the tax provisions of the American Rescue Plan Act passed to provide coronavirus aid payments to states are unconstitutional. The act could broadly prevent states from lowering taxes or risk losing federal funds, according to the complaint filed in the U.S. District Court of Arizona.

State officials throughout the country have asked for clarification on the ...

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