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Treasury’s Limits on ARPA Funds Unconstitutional, Missouri Says

Oct. 19, 2021, 5:10 PM

The U.S. Department of Treasury’s interpretation of a congressional limit on using pandemic relief funds for state tax cuts is unconstitutional, Missouri told the Eighth Circuit Court of Appeals.

Missouri Attorney General Eric Schmitt called Treasury’s interim guidance, which imposes conditions on the $350 billion designed for states and cities in the American Rescue Plan Act (Pub. L. No. 117-2), an overreach and a violation of anti-commandeering and spending clauses in the U.S. Constitution.

Missouri, one of a dozen states suing Treasury over its promise to claw back funds used to “directly or indirectly” offset tax ...