COVID-19 Relief Money And Tax Cuts: Treasury Pushes Back On Claims By Brnovich

By Jill Ryan
Howard Fischer, Capitol Media Services
Published: Thursday, July 15, 2021 - 8:39am
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Lawyers for the U.S. Treasury are asking a federal judge to throw out state Attorney General Mark Brnovich’s bid that Congress can't keep Arizona from using any of its COVID-19 relief dollars to cut taxes for businesses and individuals.

The estimated $4.9 billion in American Rescue Plan funds allocated to Arizona comes with restrictions: The money cannot be used to fund tax cuts. 

Federal lawyers argue there is no basis to consider Arizona's claim that the restriction is unconstitutional, since there has been no ruling that the state broke the law.

So far, Arizona has spent the money within the guidelines. But these legal arguments come on the heels of the Republican-controlled Legislature and the signature of Governor Doug Ducey approving $1.9 billion worth of tax cuts.

The judge has not set a date for a ruling.