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States, Businesses Back Kentucky on Pandemic Fund Tax Cut Limits

March 18, 2022, 10:10 PM

Seventeen states and several business and taxpayer groups are backing Kentucky and Tennessee in the U.S. Treasury’s appeal of a ruling that let states challenge federal restrictions on $195 billion of Covid-19 aid.

In September, the U.S. District Court for the Eastern District of Kentucky agreed with the states that restrictions on the pandemic aid sent to state and local governments under the American Rescue Plan Act are unconstitutional because they intrude on state sovereignty. The judge permanently enjoined Treasury Secretary Janet Yellen from enforcing a provision of the law that would claw back funds used to offset revenue ...