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KNAU and Arizona News

Appeals court revives Arizona case on virus cash tax cut ban

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A federal appeals court has revived a lawsuit by Arizona challenging the part of President Joe Biden’s massive coronavirus rescue law that bars states from using the federal money to offset tax cuts.

Thursday's ruling from a three-judge panel of the 9th U.S. Circuit Court of Appeals overruled a decision by a federal judge in Phoenix who said Arizona did not have the right to sue.

The panel did not rule on the merits of the case.

The same Arizona federal judge will now weigh the state’s allegation that Congress overstepped its authority when it tied acceptance of American Rescue Plan Act money to state certification that it would not be used to offset tax cuts.