BATON ROUGE, LA – 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.”