House Committee on Oversight and Reform Ranking Member James Comer (R-Ky.) released the following statement after the United States District Court for the Northern District of Alabama issued a permanent injunction against a provision included in the American Rescue Plan Act (ARPA) which imposed coercive restrictions on the States’ ability to make their own fiscal decisions. Specifically, the ARPA provision prohibited a State’s freedom to lower taxes if they received money from the Coronavirus State Fiscal Recovery Fund.

“This District Court decision has made it clear: Congressional Democrats abused their power and infringed on the States’ right to manage their own finances. President Biden’s so-called American Rescue Plan was another progressive trillion-dollar spending spree that wastes taxpayer dollars and attempted to ban States from giving taxpayers some of their money back. With inflation soaring, gas prices rising, and the cost of food increasing, congressional Democrats should take their hands off Main Street and actually prioritize policies that promote job creation and economic recovery. Unfortunately, Speaker Pelosi is once again pushing another reckless, economy-crushing, trillion-dollar spending package. Who knows how many ambiguous, unconstitutional provisions are hidden in it. It’s past time for Democrats to put aside their pie-in-the-sky progressive pet projects and get back to producing positive results for the American people.”

In March 2021, Ranking Member Comer joined Ways and Means Ranking Member Kevin Brady (R-Texas) in introducing the State Tax Freedom Act (H.R. 2189) to repeal the prohibition on the States’ freedom to lower taxes if they receive money from the ARPA’s Coronavirus State Fiscal Recovery Fund.

Additionally, Ranking Member Comer joined House Republican leaders in sending a letter to Secretary of the Treasury Janet Yellen highlighting the urgent need for guidance and requesting clarification from the Treasury Department on questions pertaining to the Coronavirus State Fiscal Recovery and Coronavirus Local Fiscal Recovery Funds included in the ARPA.

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