A judge has dismissed Arizona Gov. Doug Ducey’s lawsuit challenging the Biden administration’s demands that the state stop sending millions in federal COVID-19 relief money to schools that don’t have mask requirements or that close due to outbreaks.
The state filed the lawsuit earlier this year after the U.S. Treasury Department demanded that Ducey either restructure the $163 million program to eliminate restrictions it says undermine public health recommendations or face a repayment demand.
In a ruling earlier this week, U.S. District Judge Steven Logan concluded it was reasonable for the Biden administration to say that the money couldn’t be spent on efforts that would undermine compliance with COVID-19 prevention guidelines. The judge said a program that requires noncompliance with guidelines may worsen the pandemic and create more negative effects, which goes against the purpose of the relief fund.
The lawsuit said the Treasury Department created restrictions on spending the money Arizona receives under the American Rescue Plan Act on its own and without legal authority. It asked a court to declare that the Treasury Department’s rules are illegal and permanently block enforcement and any demands that it pay back the money spent on the two programs.
Ducey rejected Treasury’s request the following month, and the Biden administration followed up with a formal demand that it cease using the money for the disputed programs or face either repayment demands or withholding of additional money it is set to receive under Biden’s COVID-19 relief bill.At issue are two state programs the Republican governor created last summer meant to help schools and students.
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