Consumer Law
An Appeals Court Revives an Arizona Lawsuit Over a Ban on Covid Tax Cuts
A federal appeals court on Thursday revived Arizona’s lawsuit challenging the part of President Joe Biden’s massive coronavirus rescue law that bars states from using the federal money to offset tax cuts.
The ruling by a three-judge panel of the 9th U.S. Circuit Court of Appeals overruled a decision by a federal judge in Phoenix who said Arizona did not have the right to sue over the provision.
The panel did not rule on the merits of the case, instead sending it back to the same judge for her to weigh the state’s allegation that Congress overstepped its authority when it tied acceptance of American Rescue Plan Act money to state certification that it would not be used to offset tax cuts.
