21 Republican AGs Threaten To Sue Over Relief Money

The Washington Post reports:

Twenty-one Republican state attorneys general on Tuesday threatened to take action against the Biden administration over its new $1.9 trillion coronavirus stimulus law, decrying it for imposing “unprecedented and unconstitutional” limits on their states’ ability to lower taxes.

The letter marks one of the first major political and legal salvos against the relief package since President Biden signed it last week — evincing the sustained Republican opposition that the White House faces as it implements the signature element of the president’s economic policy agenda.

The attorneys general take issue with a $350 billion pot of money set aside under the stimulus, known as the American Rescue Plan, to help cash-strapped cities, counties and states pay for the costs of the pandemic. Congressional lawmakers opted to restrict states from tapping these federal dollars to finance local tax cuts.

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This threat is ridiculous. Its theory is that Congress lacks power to set aside $350B for federal spending that isn’t available as a slush fund to fill budget holes created by state and local tax cuts. Absurd. That’s just the power of the purse. Period. https://t.co/wSgyW8ahtf

— Laurence Tribe (@tribelaw) March 17, 2021