ATLANTA – Georgia House Speaker David Ralston is continuing to lobby the federal government not to attach strings on the $350 billion in the American Rescue Plan earmarked for state and local governments.
In a letter to Treasury Secretary Janet Yellen dated Thursday, Ralston, R-Blue Ridge, cited language in the $1.9 trillion COVID-19 relief bill Congress passed this week that prohibits states from using any of the aid money to “either directly or indirectly” offset reductions in net tax revenue.
Thursday’s letter followed similarly worded missives the speaker sent on Wednesday to President Joe Biden and members of Georgia’s congressional delegation.
The American Rescue Plan, which Biden signed into law on Thursday, threatens two bills now before the General Assembly, Ralston wrote.
One of the measures would give Georgians a tax cut of $140 million by raising the standard deduction on state income taxes. The other would extend a tax credit for families who adopt a child out of foster care.
“As secretary of the treasury, it will fall to your department to interpret this act and promulgate rules and regulations,” the speaker wrote. “I pray you will protect the states by ameliorating the impact of this flawed law and respect our right to budget responsibly.”
In the letter, Ralston cited an editorial in The Wall Street Journal criticizing the provision as potentially a violation of the U.S. Supreme Court’s “anti-commandeering” doctrine, which prohibits Congress from using federal funds to coerce states.
“Even if the tax cut ban doesn’t meet the court’s legal test of coercion, it’s still an egregious affront to constitutional federalism,” the paper’s editorial board wrote.
The relief bill includes $8.1 billion for Georgia. The state will receive $4.6 billion of that directly, while the rest is earmarked for local governments.
Georgia’s two Democratic U.S. senators voted for the legislation, as did all six Democrats in the state’s U.S. House delegation. All eight of the delegation’s Republicans opposed it.