WASHINGTON — The U.S. Supreme Court turned away a Missouri appeal that sought to ensure states can cut taxes even as they receive $195 billion in federal pandemic relief money.
The justices without comment left in place a federal appeals court decision that said Missouri lacked legal standing to press a lawsuit over the requirements imposed under the American Rescue Plan Act.
Missouri is among several Republican-led states that sued after President Joe Biden signed the $1.9 trillion measure into law in March 2021. The law includes a provision that says a state can’t use the money “to either directly or indirectly offset a reduction in the net tax revenue of such state.” Missouri said that provision prohibits only the deliberate use of relief funds to pay for a tax cut. The state argued that the Treasury Department’s interpretation of the law would sweep more broadly, blocking any new state tax policy that reduces revenue without some sort of offset.
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