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Jerry LambeApr 1st, 2021, 2:48 pm Alabama Attorney General Steve Marshall A group of 13 state attorneys general on Wednesday filed a federal lawsuit against the Biden administration, claiming that a provision in the $1.9 trillion COVID-19 stimulus bill recently signed into law illegally impinges upon the states’ authority to control their own tax policies in violation of the Tenth Amendment. Led by Alabama Attorney General Steve Marshall (R), the complaint alleged that language in Federal Tax Mandate provision of the American Rescue Plan Act of 2021 (ARPA) prohibits states from using the stimulus funds to “offset a reduction in the net tax revenue” effectively bars states from implementing tax cuts for up to three years. Any funds deemed by the Treasury Department to have been misspent on tax cuts is subject to recapture.

United statesNew hampshireSouth dakotaSouth carolinaWest virginiaJanet yellenRichardk delmarSteve marshallTreasury departmentDepartment inspectorUs district courtAlabama attorney general steveAlabama attorney general steve marshallFederal tax mandateAmerican rescue plan actPlaintiff state