Friday’s lawsuit said the Treasury Department initially recognized that states have “broad latitude to choose whether and how to use the (money) to respond to and address the negative economic impact” of COVID-19. But then it changed course, and created the new rules, the suit said.
The Treasury Department did not immediately respond to a request for comment on the new lawsuit.
At issue are two state programs the Republican governor created last summer meant to help schools and students.
Arizona’s Education Plus-Up Grant Program provides $163 million in funding to schools in higher-income areas that received less than $1,800 per student in federal virus aid. Districts that require face coverings or that have closed due to virus outbreaks are ineligible.
Another called the COVID-19 Educational Recovery Benefit Program provides for up to $7,000 for parents if their child’s school requires face coverings or quarantines after exposure. It lets parents use the money for private school tuition or other education costs and its design mirrors the state’s existing school voucher program.
In a letter sent last week, the Treasury Department warned that the state has 60 days to remove the anti-masking provisions before the federal government moves to recover the relief money, and it threatened to withhold the next tranche of aid as well.