Judge tosses Arizona suit over limits on virus relief funds

A judge has thrown out Arizona Gov. Doug Ducey's lawsuit that challenged 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.

The state filed a lawsuit after the U.S. Treasury Department demanded that the program be restructured or it would have to repay the money.

Changes to the $10 million program that gives private school tuition money to parents if their children's schools have mask mandates were requested by the Treasury Department.

The judge concluded that it was reasonable for the Biden administration to say that the money couldn't be spent on efforts that would undermine compliance. The judge said that a program that requires noncompliance with guidelines may cause more harm than good.

Records show that the governor is appealing the ruling. The decision was being reviewed by the governor's office, according to C.J. Karamargin.

According to the lawsuit, the Treasury Department created restrictions on spending the money Arizona received under the American Rescue Plan Act. It asked a court to order the Treasury Department to pay back the money it spent on the two programs.

In October, the Treasury Department demanded that the programs be changed. It was part of a concerted effort to force Arizona and some other Republican-led states that have opposed mask mandates to end those practices.

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.

Last summer, the Republican governor created two state programs to help schools.

The Education Plus-Up Grant Program provides $163 million in funding to schools in higher-income areas. The districts that require face coverings are not eligible.

The COVID-19 Educational Recovery Benefit Program provides up to $7,000 for parents if their child's school requires face coverings or hazmat suits. The design of the program is similar to the state's existing school voucher program.

The programs were created to increase the pressure on school districts that have had to deal with school shutdowns, remote learning and other restrictions.