Thirteen states sue Biden administration over tax cut restriction in $1.9 trillion spending package

Thirteen more states are suing the Treasury Department over what they characterize as “one of the most egregious power grabs by the federal government” in U.S. history.

The lawsuit alleges that a provision added to President Joe Biden’s $1.9 trillion relief package is unconstitutional because it limits the ability of states to provide tax cuts. They argue that the provision dictates that in order to receive some $350 billion in funding designated for state and local governments, states must abstain from any form of tax cut.