WASHINGTON -- The Supreme Court yesterday let stand a lower court decision allowing the U.S. government to confiscate interest that Pennsylvania earned on a federally subsidized self-insurance fund it set up to finance health benefits for its employees.

By declining to hear the case, the justices left intact a decision by the U.S. Court of Appeals for the Third Circuit, which Pennsylvania has warned would affect 26 others states that have federally subsidized self-insurance funds.

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