Sixta Gladys Peña Martínez v. Azar

Decision Date15 April 2019
Docket NumberCIVIL ACTION NO. 3:18-01206-WGY
PartiesSIXTA GLADYS PEÑA MARTÍNEZ, NÉLIDA SANTIAGO ÁLVAREZ, JUAN RAMÓN VÉLEZ MARRERO, MARÍA LUISA AGUILAR GALÍNDEZ, GAMALY VÉLEZ SANTIAGO, VICTOR RAMÓN ILARRAZA ACEVEDO, MARITZA ROSADO CONCEPCIÓN, ROSA MARIA ILARRAZA ROSADO, RAMÓN LUIS RIVERA RIVERA, and YOMARA VALDERRAMA SANTIAGO, Plaintiffs, v. ALEX AZAR, IN HIS OFFICIAL CAPACITY AS SECRETARY OF HEALTH AND HUMAN SERVICES; U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES; SONNY PERDUE, IN HIS OFFICIAL CAPACITY AS SECRETARY OF AGRICULTURE; U.S. DEPARTMENT OF AGRICULTURE; THE COMMISSIONER OF SOCIAL SECURITY; NANCY A. BERRYHILL, IN HER OFFICIAL CAPACITY AS DEPUTY COMMISSIONER FOR OPERATIONS OF SOCIAL SECURITY; and THE SOCIAL SECURITY ADMINISTRATION, Defendants.
CourtUnited States District Courts. 1st Circuit. District of Puerto Rico

YOUNG, D.J.1

MEMORANDUM OF DECISION
I. INTRODUCTION

This year, Patriots' Day in Massachusetts2 and the deadline for filing federal taxes share a date: today, April 15. It is fitting, then, that the Court today explains its decision to allow the plaintiffs, Puerto Rico residents, to challenge their ineligibility for certain federal benefits programs. This motion calls on the Court to consider whether the complaint adequately alleges that Congress has failed to comply with its obligation to provide each and every American equal protection of the laws. The Government chiefly defends Congress's decisions to exclude Puerto Rico residents from some federal benefits programs on the ground that Puerto Rico residents do not pay income taxes.

Yet not only do Puerto Ricans contribute to the general treasury, but also Puerto Rican patriots have paid the ultimate price for their country -- the United States of America -- since its founding. Puerto Ricans aided the Continental Army during the Revolutionary War and, since Puerto Rico's cession fromSpain, fought in the United States military "in every major United States military engagement from World War I onward, with the soldiers of Puerto Rico's 65th Infantry Regiment distinguishing themselves in combat during the Korean War." Shannon Collins, Puerto Ricans Represented Throughout U.S. Military History, United States Department of Defense (Oct. 14, 2016), https://dod.defense.gov/News/Article/Article/974518/puerto-ricans-represented-throughout-us-military-history/. Puerto Rican service in the United States military has continued to this day. See id. All told, more than 116,000 Puerto Ricans have served and more than 1,225 have given their lives in service of the United States. See id.

Of course, these facts themselves do not dispose of the legal issues that this case presents. As a lower court in a multi-level court system, this Court obeys higher courts' commands. The Court nonetheless approaches this case with two fundamental legal principles in mind: (1) the Fifth Amendment guarantees the equal protection of the laws, see Bolling v. Sharpe, 347 U.S. 497, 499 (1954), and (2) Puerto Ricans are American citizens, and have been so for over 100 years, see Jones Act, Pub. L. No. 64-368, § 5, 39 Stat. 951, 953 (1917), current version codified at 48 U.S.C. § 733a.

Turning to the particulars of this case, the plaintiffs Sixta Gladys Peña Martínez ("Peña"),3 Nélida Santiago Álvarez ("Santiago"), Juan Ramón Vélez Marrero ("Vélez"), María Luisa Aguilar Galíndez ("Aguilar"), Gamaly Vélez Santiago, Victor Ramón Ilarraza Acevedo, Maritza Rosado Concepción, Rosa Maria Ilarraza Rosado, Ramón Luis Rivera Rivera, and Yomara Valderrama Santiago (collectively, the "Plaintiffs") challenge their ineligibility for Supplemental Security Income ("SSI"), Supplemental Nutrition Assistance Program ("SNAP"), and Medicare Part D Low Income Subsidies ("LIS") under the Fifth Amendment Due Process Clause's equal protection component. Compl. ¶¶ 91-116, ECF No. 1. The defendants Alex Azar, Secretary of Health and Human Services; Sonny Perdue, Secretary of Agriculture; Nancy A. Berryhill, Deputy Commissioner for Operations of Social Security; and the Social Security Administration (collectively, the "Government") moved to dismiss the Plaintiffs' complaint for lack of subject matter jurisdiction and failure to state a claim. Defs.' Mot. Dismiss ("Mot. Dismiss") 8-25, ECF No. 10.

On March 27, 2019, the Court DENIED the Government's motion to dismiss. Electronic Clerk's Notes, ECF No. 55. The Courthas federal question jurisdiction over the Plaintiffs' claims given their inability first to receive review in an administrative forum. The Plaintiffs also adequately allege they have standing to sue; to the extent that discovery may reveal otherwise, the Government may object to standing again. Finally, the complaint constructs a plausible case that Congress's choice to exclude Puerto Rico residents from SSI, SNAP, and LIS lacks a rational basis.

A. Procedural History

The Plaintiffs filed their complaint on April 13, 2018. Compl. 1. The Government moved to dismiss on June 25, 2018. Mot. Dismiss 1. The parties have fully briefed the motion, Pls.' Mem. Opp'n Defs.' Mot. Dismiss ("Opp'n"), ECF No. 18; Reply Mem. Supp. Defs.' Mot. Dismiss ("Reply"), ECF No. 21, which was heard on March 27, 2019, Order, ECF No. 51. The Court acknowledges with thanks the amici curiae that participated in briefing this motion. See Amicus Br. Espacios Abiertos Supp. Pls.' Claims, ECF No. 32; Br. Amicus Curiae Allard K. Lowenstein International Human Rights Clinic, ECF No. 40; Congresswoman Nydia M. Velázquez's Amicus Curiae Br. Supp. Pls.' Opp'n Defs.' Mot. Dismiss ("Congresswoman Velázquez Amicus Br."), ECF No. 43; Puerto Rico Manufacturers Association Amicus Curiae Br. Supp. Pls.' Claims And Opp'n Defs.' Mot. Dismiss, ECF No. 50. The Government filed oppositions to Espacios Abiertos and the AllardK. Lowenstein International Human Rights Clinic's amicus curiae briefs. See Defs.' Resp. Amicus Br. Espacios Abiertos Supp. Pls.' Claims, ECF No. 48; Defs.' Resp. Amicus Br. Allard K. Lowenstein International Human Rights Clinic, ECF No. 49.

B. Facts Alleged

All the Plaintiffs reside in Puerto Rico and insist that, but for their residency, they would be eligible for one or all of the three challenged programs. Compl. ¶¶ 14-23. As such, this fact section first describes (as alleged in the complaint) the programs and federal policy toward Puerto Rico, then recounts facts about the Plaintiffs that are relevant to their putative eligibility for benefits. This section limits its discussion of the Plaintiffs' circumstances to the allegations necessary to satisfy the Court (at this stage of the proceedings) that at least one plaintiff has Article III standing to contest Puerto Rico residents' exclusion from each program at issue.

1. Challenged Programs

Congress funds all three programs -- SSI, SNAP, and LIS -- from general treasury funds, unlike many federal social insurance programs that Congress funds from a dedicated payroll tax. See Consolidated Appropriations Act, 2019, Pub. L. No. 116-6, div. B, tit. IV (Feb. 15, 2019) (funding SNAP for fiscal year 2019); Department of Defense and Labor, Health and HumanServices, and Education Appropriations Act, 2019 and Continuing Appropriations Act, 2019, Pub. L. No. 115-245, div. B, tit. IV (Sept. 28, 2018) (funding SSI for fiscal year 2019); 42 U.S.C. § 1395w-116 (creating in the Supplementary Medical Insurance Trust Fund the Medicare Prescription Drug Account and stating that it will be funded by general revenues); cf. Federal Insurance Contributions Act, 26 U.S.C. § 3101 et seq.; Self-Employment Contributions Act, 26 U.S.C. § 1401 et seq. SSI, SNAP, and LIS all exclude Puerto Rico residents from eligibility for benefits. Compl. ¶¶ 32, 35 (citing 42 U.S.C. §§ 1382(f); 1382c(e)); 51-52; 64-66 (citing 42 U.S.C. § 1395w-114(a)(3)(F)).

a. Supplemental Security Income

SSI provides additional cash income to people that are older than 65, blind, or disabled. Compl. ¶ 34; 42 U.S.C. §§ 1382(a), 1382c. Residents of the states, the District of Columbia, and the Northern Mariana Islands may qualify for SSI benefits. Compl. ¶ 35; 42 U.S.C. § 1382c. Puerto Rico operates a substitute program, the Aid to the Aged, Blind, or Disabled ("AABD") program, in place of the SSI program. Compl. ¶ 38. The Government subsidizes 75% of AABD's expenses, and AABD offers lower benefits than SSI. Compl. ¶ 39; 42 U.S.C. § 1318; P.R. Laws Ann. tit. 8, §§ 13, 15, 15a.

b. Supplemental Nutrition Assistance Program

SNAP provides cash assistance to low-income individuals to buy food. Compl. ¶ 48; 7 U.S.C. § 2011. Residents of the states, the District of Columbia, Guam, and the United States Virgin Islands may qualify for SNAP benefits. Compl. ¶ 48; 7 U.S.C. § 2014(b). Puerto Rico receives a federal block grant to fund its similar Nutrition Assistance Program ("NAP"). Compl. ¶ 56. More individuals qualify for SNAP than for NAP, and SNAP benefits tend to be larger. Id. ¶ 57.4

c. Medicare Part D Low Income Subsidies

Medicare Part D subsidizes private insurers' prescription drug plans for Medicare beneficiaries. Compl. ¶ 62; 42 U.S.C. § 1395w-101(a)(1). LIS, in turn, subsidizes low-income Medicare beneficiaries so that they can purchase a Medicare Part D insurance plan. Compl. ¶ 64; 42 U.S.C. § 1395w-114. Those beneficiaries must reside in a state or the District of Columbiaand (1) have eligibility for Medicaid and Medicare; (2) receive SSI; (3) participate in a Medicare Savings Program; or (4) "have family income less than 135% of the federal poverty level and have resources that do not exceed certain limits." Compl. ¶ 65; 42 U.S.C. § 1395w-114(a)(1), (a)(3)(A), (a)(3)(F). Congress sends some extra money to the Puerto Rican Medicaid program to support prescription drug insurance but has not funded the program such that it can provide the same benefit as LIS. Compl. ¶¶ 69-70 (citing U.S.C. § 1396u-5(e)).

2. Relevant Federal Policies Towards Puerto Rico

The complaint alleges that Government used tax policy to encourage private companies to invest in Puerto Rico prior...

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