Treasury Asks Federal Court to Reverse Ohio Pandemic Aid Ruling

Sept. 23, 2021, 6:16 PM

The U.S. Treasury is asking a federal court to let it claw back American Rescue Plan funds Ohio might use to offset losses from a tax cut.

In a brief filed Tuesday, Treasury urged the Sixth Circuit to reverse a permanent injunction issued by the U.S. District Court for the Southern District of Ohio, saying it “rests on a series of independent legal errors.” The court in July ruled that Congress exceeded its constitutional authority in placing restrictions on the $350 billion of federal aid and created uncertainty that could prevent Ohio from making tax changes.

“Congress unquestionably has ...

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