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Missouri’s Challenge to Pandemic Aid Spending Rules Dismissed

May 11, 2021, 11:55 PM

Missouri lacks standing to challenge spending restrictions on Covid-19 relief funds because it can’t show that it suffered an injury due to those limits, a federal court said Tuesday.

The state alleged a tax offset restriction in the American Rescue Plan Act of 2021 (Pub. L. No. 117-2) could be interpreted to allow the federal government to commandeer state tax policy.

A narrow interpretation of the offset restriction only prohibits states from taking Covid-19 funds and deliberately applying them to offset a specific tax reduction, Missouri said. But a broader interpretation prohibits states from enacting any tax-reduction ...

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