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Ohio’s Covid-19 Aid Case Questioned by Federal Appeals Court

Jan. 26, 2022, 5:34 PM

A federal appeals court heard oral arguments Wednesday in the U.S. Treasury’s appeal of a ruling that let states challenge federal restrictions on $350 billion of Covid-19 aid.

In July 2021, District Judge Douglas Cole of the U.S. District Court for the Southern District of Ohio handed the U.S. Treasury the first loss in its multistate legal battle over an American Rescue Plan Act provision that bars states from replacing revenue lost from tax cuts with the federal funding. Ohio’s permanent injunction prevents Treasury from recouping any funds it deems to violate the statute. Cole found the law was so ...