TBA Law Blog

Posted by: Kate Prince on Apr 6, 2021

Attorney General Herbert Slatery has joined Kentucky Attorney General Daniel Cameron in a lawsuit challenging a mandate from the Biden Administration in the American Rescue Plan Act, which was signed into law last month. The economic stimulus bill includes nearly $2 trillion and allocates roughly $200 billion to help state governments with COVID-19 relief. To receive the aid, the bill requires states to comply with a tax mandate that prevents it from lowering taxes for its citizens for four years. The lawsuit argues that the tax mandate unconstitutionally usurps the authority of each state’s legislature to enact beneficial tax policies. Tennessee expects to receive about $3.7 billion under the Act, more than one fifth of Tennessee’s annual general revenue. Read more from the AG’s office.