Bloomberg Tax
July 23, 2021, 7:52 PM

Arizona to Appeal Dismissal of Case Against Federal Fund Curbs

Sam McQuillan
Sam McQuillan

Arizona will appeal a federal court’s decision throwing out its lawsuit over spending restrictions on the latest round of pandemic aid funds.

Judge Diane Humetewa dismissed Arizona’s complaint challenging the constitutionality of the U.S. Treasury Department’s American Rescue Plan Act guidance, which would claw back ARPA funds that states used to make up revenue lost from tax cuts. Since Arizona hasn’t yet had funds clawed back, it can’t prove harm, Humetewa said, noting that the state waited for more than two months after the law was passed to sue.

“Arizona does not claim that the Secretary is currently enforcing ...