Louisiana joins Texas, Mississippi in filing suit against federal government over American Rescue Plan

Louisiana

US President Joe Biden speaks about the American Rescue Plan and the Paycheck Protection Program (PPP) for small businesses in response to coronavirus, in the Eisenhower Executive Office Building in Washington, DC, February 22, 2021. – The Paycheck Protection Program (PPP) has been a key lifeline to businesses amid the Covid-19 crisis, but the smallest among them, those least likely to have relationships with banks, often missed out. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

BATON ROUGE, La (KLFY) — Yesterday, Louisiana joined Mississippi and Texas in filing suit against the federal government over the $1.9 trillion “American Rescue Plan Act of 2021.”

Louisiana, Mississippi, and Texas are challenging the constitutionality of the tax mandate in Section 9901 of the American Rescue Plan, according to a press release from Attorney General Jeff Landry’s office.

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,” said 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.”

A copy of the suit may be found here.

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