US Won’t Appeal Ban on Covid Aid for Tax Offset Enforcement

The US Treasury won’t challenge an injunction against its enforcement of an American Rescue Plan Act provision that restricts states from using Covid-19 aid to directly or indirectly offset tax cuts, the US Department of Justice told Bloomberg Law Friday.

The federal government declined to file a petition to the US Supreme Court for review.

“Ultimately, this is a done deal. Almost every state has cut taxes in some way since the start of the pandemic, red and blue states alike. There’s very little reason for the Treasury to continue to push on this losing point,” Tax Foundation Vice President ...