Texas Has Standing In Pandemic Aid Tax Cut Limit, Court Says

Texas, Mississippi, and Louisiana can proceed with their lawsuit challenging the U.S. Treasury’s limit on using pandemic relief funds to cut state taxes, a federal trial court judge said Friday.

The ruling in the states’ favor marks the fourth federal court loss for the federal government over restrictions on pandemic relief spending. U.S. District Court Judge Matthew J. Kacsmaryk said the states have standing to sue because the ambiguity of the American Rescue Plan Act’s tax mandate forces them to choose between losing billions of dollars in federal funds or compromising their taxing authority.

“The alleged injuries cited by ...