CK v. Shalala

• Decision Date: 04 May 1995
• Docket Number: Civ. A. No. 93-5354 (NHP).
• Citation: 883 F. Supp. 991
• Parties: C.K., on her own behalf and as guardian ad litem for her baby S.B., and her daughter J.M.; J.W., on her own behalf and as guardian ad litem for her baby E.W. and her son J.W.; E.P., on her own behalf and as guardian ad litem for her baby I.P. and her son R.P.; E.M., on her own behalf and as guardian ad litem for her baby B.M. and her daughter C.G.; H.K., on her own behalf and as guardian ad litem for her babies T.H., D.H. and D.H. and other sons S.H. and J.H.; E.S. and G.S., on their own behalf and as guardian ad litem for their baby boy B.S., son C.S. and their daughter C.S.; M.M. on her own behalf and as guardian ad litem for her daughter A.P. and her son A.R., on behalf of themselves and all other similarly situated v. Donna SHALALA, Secretary, United States Department of Health and Human Services, in her official capacity; The United States Department of Health and Human Services; New Jersey Department of Health and Human Services; William Waldman, Commissioner, New Jersey Department of Health and Human Services in his official capacity.
• Court: U.S. District Court — District of New Jersey

883 F. Supp. 991

C.K., on her own behalf and as guardian ad litem for her baby S.B., and her daughter J.M.; J.W., on her own behalf and as guardian ad litem for her baby E.W. and her son J.W.; E.P., on her own behalf and as guardian ad litem for her baby I.P. and her son R.P.; E.M., on her own behalf and as guardian ad litem for her baby B.M. and her daughter C.G.; H.K., on her own behalf and as guardian ad litem for her babies T.H., D.H. and D.H. and other sons S.H. and J.H.; E.S. and G.S., on their own behalf and as guardian ad litem for their baby boy B.S., son C.S. and their daughter C.S.; M.M. on her own behalf and as guardian ad litem for her daughter A.P. and her son A.R., on behalf of themselves and all other similarly situated v. Donna SHALALA, Secretary, United States Department of Health and Human Services, in her official capacity; The United States Department of Health and Human Services; New Jersey Department of Health and Human Services; William Waldman, Commissioner, New Jersey Department of Health and Human Services in his official capacity.

Civ. A. No. 93-5354 (NHP).

United States District Court, D. New Jersey.

May 4, 1995.

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Melville D. Miller, Jr., President David G. Sciarra, Legal Services of N.J., Inc., Edison, NJ, Martha F. Davis, Deborah A. Ellis, Now Legal Defense and Educ. Fund, New York City, Lawrence S. Lustberg, Jonathan Romberg, on Behalf of the ACLU-NJ, Crummy, Del Deo, Dolan, Griffinger & Vecchione, Newark, NJ, for plaintiffs.

Sheila M. Lieber, Margaret H. Plank, U.S. Dept. of Justice, Civ. Div., Washington, DC, Susan C. Cassell, Asst. U.S. Atty., Faith S. Hochberg, U.S. Atty., Newark, NJ, for defendants Donna Shalala, Secretary of U.S. Dept. of Health and Human Services, and U.S. Dept. of Health and Human Services.

Dennis J. Conklin, Sr. Deputy Atty. Gen., Benjamin Clarke, Asst. Atty. Gen., Michael J. Haaas, Sr. Deputy Atty. Gen., Emerald L. Kuepper, Deputy Atty. Gen., Deborah T. Poritz, Atty. Gen. of N.J., Trenton, NJ, for defendants William Waldman, Com'r of Human Services, and State of N.J. Dept. of Human Services.

Daniel J. Popeo, David A. Price, Wash. Legal Foundation, Washington, DC, Peter T. Manzo, Edison, NJ, for amici curiae The Wash. Legal Foundation and The Lincoln Institute for Research and Educ., Inc. in support of defendants' Motion for Summary Judgment.

Anthony J. Tomari, Hannoch Weisman, Roseland, NJ, William H. Mellor, III, Clint Bolick, Dana Berliner, Institute for Justice, Washington, DC, for amici curiae The American Legislative Exchange Council, The Empowerment Network Foundation, The Independent Women's Forum, Bethsai Towshend, Toya Pettey, Nicole Green, Tomikka Simmons and Shantina Delvalle, in support of defendants' Motion for Summary Judgment.

Nadine Taub, Women's Rights Litigation Clinic, Newark, NJ, Maureen E. O'Bryon, Michael L. Whitener, Jeffrey G. Schneider, Laura E. Loeb, Jonathan S. Franklin, Jody Foster, Hogan & Hartson, Washington, DC, Judith L. Lichtman, Joan Entmacher, Joanne L. Hustead, Women's Legal Defense Fund, Washington, DC, for amici curiae The Women's Legal Defense Fund, Advocates for Youth, Catholics for a Free Choice, The Center for Reproductive Law and Policy, Coalition of Labor Union Women, The Fund for the Feminist Majority, Intern. Ladies' Garment Workers' Union, Nat. Abortion and Reproductive Rights Action League, The Nat. Black Women's Health Project, The Nat. Council of Jewish Women, Inc., The Nat. Council of Negro Women, Inc., The Nat. Family Planning and Reproductive Health Ass'n, The Nat. Gay and Lesbian Task Force, The Pro-Choice Resource Center, The Religious Coalition for Reproductive Choice, and Right to Choose in N.J. in support of plaintiffs' Motion for Summary Judgment.

Evan A. Davis, Lynn A. Dummett, Lawrence T. Gresser, Marcia L. Narin, Yves P. Denize, Cleary, Gottlieb, Steen and Hamilton, New York City, for amici curiae Ass'n for Children of N.J., The Nat. Organization for Women (NOW-NJ), American Friends Service Committee, The Lutheran Office of Governmental Ministry in N.J., The Nat. Ass'n of Social Workers, Inc., The Child Care Law Center, The Child Welfare League of America, The Food Research and Action Center, and The Nat. Ass'n of Child Advocates in support of plaintiffs' Motion for Summary Judgment.

Rand E. Rosenblatt, Robert F. Williams, Rutgers University Law School, Camden, NJ, for amici curiae The Nat. Com'n for the Protection of Human Subjects of Biomedical and Behavioral Research, and The President's Com'n for the Study of Ethical Problems in Medicine and Biomedical and Behavioral Research in support of plaintiffs' Motion for Summary Judgment.

Richard J. Traynor, Russell J. Passamano, Legal Center for Defense of Life, Inc., Morristown, NJ, for amici curiae N.J. Right to Life Committee, Inc., and Citizens Concerned for Life, Inc. in support of plaintiffs' Motion for Summary Judgment.

Shirley D. Brandman, Kathleen A. Sullivan, The Jerome N. Frank Legal Services Organization, New Haven, CT, Lucy A. Williams, Northeastern University School of Law, Boston, MA, for amici curiae Puerto Rican Legal Defense and Educ. Fund, Society of American Law Teachers, Wider Opportunities for Women, and Women and Poverty Project in support of plaintiffs' Motion for Summary Judgment.

POLITAN, District Judge.

Plaintiffs, residents of New Jersey currently receiving welfare funding via the Aid to Families with Dependent Children ("AFDC") program, challenge the exercise by the Secretary of the United States Department of Health and Human Services ("HHS") of her discretionary authority pursuant to § 1115 of the Social Security Act, 42 U.S.C. § 1315(a), which permits the Secretary to waive state plan requirements of the Act to enable individual states to test reforms to their AFDC programs via demonstration projects.¹ Specifically, plaintiffs challenge the Secretary's grant of waivers to the state of New Jersey in July 1992 to allow implementation of the state's Family Development Program ("FDP") which, inter alia, contains the so-called Family Cap provision, an amendment to existing state law that eliminates the standard increase provided by AFDC for any child born to an individual currently receiving AFDC.

Plaintiffs have presently moved this Court to enter summary judgment on their behalf and thereby permanently enjoin the Family Cap and vacate the Secretary's waiver insofar as it authorizes the state to implement the cap. They assert that the Secretary violated the Administrative Procedure Act ("APA") by failing to provide in the administrative record any explanation of her resolution of the relevant issues concerning the state's application for the waiver. Moreover, plaintiffs assert that as a matter of law the Family Cap violates (1) the APA since the Secretary exceeded her statutory authority in approving a waiver under § 1315(a); (2) various provisions of the Social Security Act and implementing regulations; (3) HHS regulations protecting human subjects in experiments that involve pregnant women and fetuses; and (4) the Equal Protection and Due Process Clauses of the United States Constitution.

Defendants, the United States Department of Health and Human Services and its Secretary Donna Shalala, along with the New Jersey Department of Human Services ("DHS") and its Commissioner William Waldman, oppose the plaintiffs' motion and have cross-moved for summary judgment dismissing the Complaint. Defendants argue that the Secretary's grant of waivers to the state of New Jersey to implement the FDP reflected a reasoned judgment that the reforms proposed by the state were likely to promote the salutary objective of the AFDC program, namely breaking the cycle of poverty for AFDC recipients, enhancing their individual responsibility, and strengthening their family structure. Moreover, defendants contend that New Jersey's Child Exclusion program does not violate any statutory or constitutional provisions. I heard oral argument with respect to these competing motions on January 27, 1995 and reserved decision. For the reasons expressed herein, defendants' motion for summary judgment dismissing the Complaint is GRANTED and plaintiffs' motion for summary judgment is DENIED.

I. BACKGROUND

AFDC is a joint federal and state program established under Title IV-A of the Social Security Act, 42 U.S.C. § 601 et seq., to "enable each State to furnish financial assistance and rehabilitation and other services, as far as practicable under the conditions in such State, to needy dependent children and the parents or relatives with whom they are living...." 42 U.S.C. § 601. Under that program, if the state submits an AFDC state plan that meets the requirements of 42 U.S.C. § 602, the federal government reimburses it for a portion of the benefits it provides to aid recipients. In other words, the state will receive federal matching funds if it has in effect an AFDC plan that comports fully with the Social Security Act.

The AFDC statutes create a "scheme of cooperative federalism" in which states are given "considerable latitude" in the administration of their own programs. King v. Smith, 392 U.S. 309, 316-19, 88 S.Ct. 2128, 2133-34, 20 L.Ed.2d 1118 (1968). To determine eligibility, each state sets as a "standard of need" an "amount deemed necessary by the State to maintain a hypothetical family at a subsistence level." Shea v. Vialpando, 416 U.S. 251, 253, 94 S.Ct. 1746, 1750, 40 L.Ed.2d 120 (1974). A family otherwise eligible for AFDC qualifies for benefits if its "countable" income (i.e., its income after various deductions for work-expenses, child-care and other purposes are subtracted, 42 U.S.C. § 602(a)(8)) is less than the standard of need. A state need not, however, pay the full difference between income and standard of need; each state is free to determine a maximum assistance payment. That payment may be set, for instance, as a fixed...