Attorney General Ken Paxton filed a lawsuit against the Biden Administration over a provision in the federal government’s American Rescue Plan Act. Though the Act generally assists Texans recovering from the COVID-19 pandemic, one provision—the Tax Mandate—specifically demands that Texas not use funds received through the Act to “directly or indirectly” offset tax revenue reduction caused by changes in tax policy. This condition prohibits Texas and other states with similar low-tax models of governance from cutting taxes for […]
