21 Republican states threaten legal action against Biden Covid bill


21 Republican state attorney generals have threatened to take legal action against the Biden administration over “unprecedented and unconstitutional” limits imposed in the coronavirus relief bill on the ability of states to lower taxes.

The attorney generals made the threat in a letter to the administration on Tuesday, just a few days after President Joe Biden signed the $1.9 trillion (£1.3 trillion) bill into law.

In the seven-page letter sent to Treasury secretary Janet Yellen on Tuesday, the 21 GOP officials argued that parts of the funding in the relief package that helps states offset the costs of the pandemic limits their ability to lower taxes.

The Republican officials referred to the American Rescue Plan, a pot of $350bn (£251bn) that has been set aside as part of the bill to help cash-strapped areas affected by the shutting down of the hospitality sector and mass unemployment caused by the pandemic.

As part of negotiations for the bill, Congressional lawmakers agreed to restrict states from using the federal funds for local tax cuts, with press secretary Jen Psaki explaining on Monday that the $350bn pot is intended for “cops, firefighters and other essential employees at work and employed,” and “wasn’t intended to cut taxes.”


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