A federal appellate court dealt President Joe Biden a loss Thursday, ruling that Arizona can challenge the administration’s rule prohibiting states from using COVID-19 funds to lower taxes.
Biden rallied support and passed the American Rescue Plan Act in March of last year. That law provided funding for states to fight COVID-19 and rebound from the economic consequences, among other things. However, the law included a “tax mandate” preventing states from lowering taxes if they accepted the federal funds.
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