JACKSON, Miss. ( WJTV ) – Attorney General Lynn Fitch (R-Miss.) announced the Fifth Circuit Court of Appeals affirmed a permanent injunction, which agrees that the tax mandate in the American Rescue Plan Act (ARPA) “unlawfully forc[es] the States to adopt certain tax policies.”

Fitch said the ruling also noted that the mandate exceeds Congress’ Spending Clause authority and violates the anti-commandeering doctrine.

Mississippi’s attorney general filed this suit alongside the attorneys general of Texas and Louisiana.

“It is the responsibility of our elected legislators to decide how and when to cut taxes, as well as how to best stimulate economic growth post-COVID-19,” said Fitch. “This thoughtful opinion ensures that decisions with substantial fiscal and economic implications for our State are made by Mississippi legislators with the needs of the Mississippi citizens they represent in mind. I am proud to stand with both Texas and Louisiana to protect our right to give money back to the people without federal interference or overreach.”

The tax mandate is a provision of the American Rescue Plan Act (ARPA), signed into law on March 11, 2021, that bars states from “directly or indirectly” using federal aid granted to states in ARPA for tax cuts. Under the tax mandate, the U.S. Treasury may claw back funds it believes have been misused to provide tax relief.

Fitch and the other attorneys general filed suit on May 3, 2021, arguing that mandate violates the spending clause of the U.S. Constitution.

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