Gov. Doug Ducey is suing the federal government in an effort to keep $173 million provided to the state through the American Rescue Plan Act.
The Treasury is demanding the funds be returned and threatening to withhold future aid.
The Biden administration claims that Ducey’s use of the funds does not align with the requirement that the federal aid must be used to prevent the spread of coronavirus.
Hear Howard Fischer discuss Ducey's lawsuit with Host Mark Brodie on The Show
Currently, Arizona is only providing American Rescue Plan Act funding to schools that are operating in person without mask mandates. Ducey is also offering vouchers to parents who remove their children from schools operating with mask requirements.
Ducey called the Biden administration’s demands federal overreach and says the Treasury is overstepping its boundaries by interfering with another branch of government.
There is currently no date set for a hearing.
