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State wins suit against the U.S. Department of Treasury

The suit was over a provision of the American Rescue Plan Act.

The United States Treasury Department building in Washington, D.C.

Alabama Attorney General Steve Marshall said Monday that the state has won its suit against the U.S. Department of Treasury over a provision of the American Rescue Plan Act that punishes states for making changes to any laws that would reduce taxes.

On Monday, the U.S. District Court for the Northern District of Alabama granted the states’ motion for a final judgment and permanent injunction, instructing the Treasury secretary not to seek enforcement of the tax mandate against the plaintiff states.

Alabama, joined the lawsuit with West Virginia and Arkansas, was joined by Alaska, Florida, Iowa, Kansas, Montana, New Hampshire, Oklahoma, South Carolina, South Dakota and Utah.

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