GOP state officials undeterred in challenging tax cut rule in COVID aid bill

Washington — Guidance provided by the Treasury Department this week to clarify a challenged provision of President Biden's $1.9 trillion coronavirus rescue package has done little to assuage state Republican officials who are targeting the measure in a slew of legal battles.

The provision at issue prohibits states from using money from a $350 billion pot for states and localities included in Mr. Biden's economic aid package to offset tax cuts. GOP attorneys general from more than a dozen states have asked the courts to block enforcement of the prohibition, arguing it steps outside constitutional bounds. While an interim final rule published by the Treasury Department seeks to provide clarification as to how that measure will be enforced and under what conditions the money will be recouped from states who run afoul of the prohibition, the Republican officials say it does little to satisfy their constitutional concerns.