WASHINGTON — The Treasury Department told Arizona officials on Friday that it could claw back some of the state’s pandemic aid and withhold future payments if the state did not halt or redesign programs that use the money to undercut mask requirements in schools.
The warning was the latest development in a dispute between Gov. Doug Ducey, a Republican, and the Biden administration over how the $4.2 billion that was awarded to the state as part of the relief package that Congress passed last year can be used. Republican governors in several states have been trying to use the money for unauthorized purposes, such as cutting taxes or enacting immigration policies that are unrelated to the pandemic.