Federal Judge Strikes Down Ambiguous Tax Mandate Provision in Biden’s $1.9 Trillion Relief Package

A federal judge issued a permanent injunction on Thursday to block the ambiguous tax mandate in President Joe Biden’s $1.9 trillion COVID-19 relief package. U.S. District Judge Douglas R. Cole from the District Court for the Southern District of Ohio ruled that the tax mandate in the America Rescue Plan Act (ARPA)—which seems to tie the relief fund to the states’ authority to reduce tax—exceeds the Congress’s authority under the Spending Clause due to its ambiguity. The Interim Final Rule (IFR) issued by the Treasury Department intended to clarify the tax mandate “does not cure that constitutional violation,” the judge stated. “Accordingly, this Court GRANTS Ohio’s Motion for a Permanent Injunction (Doc. 38), and enjoins the [Treasury] Secretary from seeking to enforce the Tax Mandate, 42 U.S.C. § 802(c)(2)(A), against Ohio,” reads the ruling (pdf). The judge also expressed concerns that the tax mandate has breached the separation-of-powers principles laid …
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