Judge: Feds can't prohibit Ohio's use of COVID-19 relief funds for tax cuts

Cross post in GD.

A federal court on Thursday ruled that President Joe Biden's Treasury Department cannot enforce a rule prohibiting use of federal COVID-19 relief funds for tax cuts in Ohio, handing a victory to state Republican leaders.

"The Biden administration reached too far, seized too much and got its hand slapped," Ohio Attorney General Yost said in a news release. "This is a monumental win for the preservation of the U.S. Constitution – the separation of powers is real, and it exists for a reason.”

Yost had sued the U.S. Treasury in March over a "tax mandate" provision in the American Rescue Plan Act, a humongous $1.9 trillion spending package to aid the nation in recovery from the COVID-19 pandemic. Ohio's share was around $5.4 billion.

In ARPA, a section states that the relief funds may not be used by states “directly or indirectly” to offset revenue reductions.

Ohio and at least 20 other Republican-led states took issue with that rule, arguing that it violated and infringed upon a state's taxing authority. It also threw a wrench into state Republicans' initial plans nationwide to use some of the extra money for increased tax cuts.

https://www.dispatch.com/story/news/politics/2021/07/02/ohio-attorney-general-dave-yost-wins-against-biden-rule-prohibiting-tax-cuts-covid-19-district-court/7843159002/?utm_source=dispatch-Afternoon%20Update&utm_medium=email&utm_campaign=baseline_greeting&utm_term=hero&utm_content=OHIO-COLUMBUS-NLETTER02

Yost is an asshole.