Louisiana AG files suit over American Rescue Plan Act

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Yesterday, Louisiana joined Mississippi and Texas in filing suit against the federal government over the $1.9 trillion “American Rescue Plan Act of 2021.”



The states argue the Act’s Tax Mandate violates the U.S. Constitution and are asking the Court to declare as much. Additionally, they are seeking an injunction to prevent federal officials from applying the Tax Mandate against the states.

“In exchange for badly needed funds to assist the States of Texas, Mississippi, and Louisiana and their citizens in recovering from the ongoing pandemic – the American Rescue Plan Act attempts to obligate these states to exercise their core sovereign power of taxation in the way the federal government prefers,” explained Attorney General Landry. “Specifically, the Act prohibits the states from reducing net tax revenue on pain of forfeiting up to billions of dollars in federal funding.”

“This significant and unconstitutional condition demands that the states not use funds received through the Act to ‘directly or indirectly’ offset ‘a reduction in net tax revenue’ caused by a change in tax policy,” continued Attorney General Landry. “This condition applies regardless of the state’s current rate of COVID-19 infections, its current unemployment rate, or its views on the best way to alleviate the economic burdens associated with the pandemic.”



“As this action by the federal government violates the Spending Clause, the Anti-Commandeering Principle, and the Equal Sovereignty Principle – I trust the Court will grant us the relief we seek,” concluded Attorney General Landry. “I will continue to do all that I can to ensure the federal government does not usurp Louisiana’s constitutional authority to govern itself.”

 

A copy of the suit may be found here.