13 Attorneys General Sue Biden Admin Over Stimulus Tax Rule

Obama Stimulus Economy

(AP Photo/Manuel Balce Ceneta)

CHARLESTON, W.Va. (AP) — Attorneys general from 13 states sued the Biden administration on Wednesday over a provision in the federal stimulus that bars tax cuts from being offset with relief money. In Alabama, the filing in U.S. District Court asks judges to strike down the provision that prohibits states from using $195 billion of federal aid “to either directly or indirectly offset a reduction” in net tax revenue. The restriction could apply through 2024. Treasury Secretary Janet Yellen is named in the suit. Earlier this month she said states can still cut taxes as long as relief funds aren’t used to cover for the reductions.

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