Bloomberg Tax
July 14, 2021, 6:57 PMUpdated: July 14, 2021, 7:41 PM

Judge Urges GOP States to Press Fight on Relief Funds Limit (1)

Sam McQuillan
Sam McQuillan

More than a dozen Republican states won’t get the initial relief they sought in their lawsuit over congressional restrictions on tax cuts using some of the $350 billion in American Rescue Plan Act relief funds, but a federal judge is encouraging them to press their case against the prohibitions.

A group of 13 states including Florida, South Carolina, and West Virginia was denied a preliminary injunction because the harm they allege—potential recoupment of federal funds—hasn’t happened yet and is “extremely unlikely” to happen soon, Judge L. Scott Coogler of the U.S. District Court for the Northern District ...