Sixth Circuit Grills Kentucky’s Challenge to Covid Aid Limits

A panel of Sixth Circuit judges scrutinized Kentucky’s challenge to federal restrictions on nearly $200 billion in Covid-19 aid during oral arguments heard before the court Thursday.

The Treasury Department is appealing a trial court ruling in Kentucky’s favor permanently enjoining Treasury Secretary Janet Yellen from enforcing a provision of the American Rescue Plan Act that would claw back funds used to offset revenue losses from a tax cut.

Similar challenges to the offset provision filed by other states are playing out in courts around the country. The only two federal appeals court to rule so far split on ...