Bloomberg Tax
Oct. 26, 2021, 5:48 PM

Texas Lacks Standing for Pandemic Aid Lawsuit, Treasury Says

Sam McQuillan
Sam McQuillan

Texas, Mississippi, and Louisiana lack standing to sue the U.S. Treasury over a condition on federal pandemic aid that prevents states from using funds to cut taxes, the agency has told a U.S. District Court.

In a brief filed Monday with the U.S. District Court for the Northern District of Texas, Treasury said the three states had not shown the “offset provision” prohibits any action they intend to make or is causing them any other harm. The department cited similar district court challenges in Arizona and Missouri, which were dismissed for “nearly identical complaints,” and asked the court ...

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