The U.S. Supreme Court declined to hear a case challenging restrictions on the use of American Rescue Plan Act funding but will hear a case concerning religious accommodation. The U.S. Supreme Court declined to take up the case of Missouri v. Yellen , in which Missouri challenged restrictions on the use of American Rescue Plan Act funding for state tax reductions. States can use ARPA funds for a variety of purposes, such as responding to the COVID-19 public health emergency or its negative economic impacts on households, businesses or industries; giving premium pay to essential state, local or tribal government workers; providing government services to the extent of revenue losses due to the pandemic; or making necessary investments in water, sewer or broadband infrastructure. But ARPA contains restrictions on the use of the recovery funds: They cannot be deposited into a pension fund, nor can they be used to “directly or indirectly offset a reduction in the net state tax revenue that results from a change in law or regulation” that reduces any tax or that delays a state tax increase. States must certify to the Treasury Department that they will comply with the law’s provisions before they can […]
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