Republican attorneys general threaten key element of the $1.9 trillion stimulus
Source: Washington Post
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.
Lawmakers included the provision to ensure Washington isn’t footing the bill on behalf of states that later take deliberate steps to reduce their revenue. But the guardrails frustrated many GOP leaders, who said in a letter to the Treasury Department that the law’s vague wording threatens to interfere with states in good financial standing that sought to provide “such tax relief with or without the prospect of COVID-19 relief funds.”
Read more: https://www.msn.com/en-us/news/politics/republican-attorneys-general-threaten-key-element-of-the-dollar19-trillion-stimulus/ar-BB1eEBEv?li=BBnb7Kz
There are almost always strings attached to federal money. It'll be interesting to see which way this goes.
= new reply since forum marked as read
