Plans to use public funding to support construction of the new Little Caesars Arena in Detroit, Michigan, in the US, are in doubt after a federal lawsuit was launched in an effort to block the proposal.

According to the Associated Press news agency, the lawsuit said Michigan state law says school property tax revenue cannot be spent on the project, as voters in 2012 approved plans for the funds to be use exclusively for schools in Detroit.

The Detroit Downtown Development Authority, a public entity that is involved with the ongoing project, has said it will examine the lawsuit before making a formal response.

When complete, the Little Caesars Arena will be the new home of NHL ice hockey team the Detroit Red Wings and NBA basketball outfit the Detroit Pistons.

The Ilitch family, which owns the Red Wings, is financing the majority of the project.

Image: Rick Briggs