The Supreme Court refused on Jan. 17 to take up an appeal by Missouri challenging a ban on states using federal pandemic-relief funds to offset state revenue reductions, such as those attributed to tax cuts or other policy changes.
The decision is a victory for the Biden administration, which had urged the court to deny the petition.
The $1.7-trillion American Rescue Plan Act (ARPA), signed by President Joe Biden on March 11, 2021, was a response to the economic downturn associated with the COVID-19 pandemic. ARPA provided $195 billion in aid to state governments, along with $130 billion in aid to local governments.
The Supreme Court ruling leaves undisturbed a decision by the U.S. Court of Appeals for the 8th Circuit that held that Missouri lacked legal standing to pursue a lawsuit challenging federal conditions imposed on ARPA funding….