States Win Early Battles Over Pandemic Funds but War Isn’t Over

States challenging federal restrictions on nearly $200 billion in Covid-19 aid have come out ahead so far in court on their right to sue, notching wins in five of the six cases. But the cases are still in early stages, and pending appeals court decisions on the merits of the aid limits could upset that lead.

The suits filed by states or groups of states challenge the American Rescue Plan Act’s “offset provision,” which says states can’t use the federal money to either directly or indirectly offset a reduction in net tax revenue.

A recent case challenging a different aspect ...