The Supreme Court turned away a legal battle brought by the state of Missouri over a measure in the $1.9 trillion COVID-19 aid package that prohibited states from using economic relief money awarded to them to offset tax cuts.
The Supreme Court on Tuesday turned away a legal battle brought by the state of Missouri over a measure in thethat prohibited states from using economic relief money awarded to them to offset tax cuts.
If a state does not use its fiscal recovery money in compliance with the law, the Treasury Department can recoup the funds.in federal courts across the country.
A federal district court dismissed Missouri's case, finding the state lacked legal standing to challenge the tax mandate, and its suit was premature. The U.S. Court of Appeals for the 8th Circuit affirmed, finding that the state hadn't alleged"any intent to engage in conduct" forbidden by the tax mandate on its face, or Treasury Secretary Janet Yellen's interpretation of the provision.
Missouri appealed to the Supreme Court, but the high court's decision not to hear the case leaves the 8th Circuit ruling in place.requesting the high court consider the dispute, Schmitt noted that Missouri's share of American Rescue Plan funds constitutes 13% to 14% of its general fund expenditures in the two years before the law's passage, and how much of that money the state receives depends on its compliance with the tax mandate.
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