The Supreme Court refused on June 12 to hear Ohio’s argument that the American Rescue Plan Act (ARPA) unconstitutionally prevents states from using COVID-19-related pandemic relief funding to offset tax cuts.
This is the second time this year that the court has turned down a state’s petition challenging a tax-related provision in ARPA.
The $1.7-trillion American Rescue Plan Act, signed by President Joe Biden in March 2021, was a response to the economic downturn associated with the COVID-19 pandemic. ARPA provided $195 billion in aid to state governments, along with $130 billion in aid to local governments. Ohio accepted about $5.4 billion.
On Jan. 17, the Supreme Court took a pass on an appeal by Missouri challenging a ban on states using federal pandemic-relief funds to offset state revenue reductions, such as those attributed to tax cuts or other policy changes….}