Multnomah Cnty., an Existing Cnty. Gov'T&a Body Politic & Corporate v. Azar
Multnomah Cnty., an Existing Cnty. Gov'T&a Body Politic & Corporate v. Azar
Opinion of the Court
Plaintiff Multnomah County ("the County") has brought this action to enjoin the administration of the 2018 application and selection process for Teen Pregnancy Prevention Program ("TPP Program") grants by defendants U.S. Department of Health and Human Services ("HHS"), Secretary Alex M. Azar II, and Senior Policy Advisor Valerie Huber (collectively "defendants"). Am. Compl. ¶ 1, ECF # 28. The County alleges four claims: In Count One, the County asserts that the 2018 Tier 1 Funding Opportunity Announcement ("2018 Tier 1 FOA") must be vacated under the Administrative Procedures Act,
The County has filed a Motion for Preliminary Injunction and Partial Summary Judgment with respect to Counts One, Two, and Four. ECF # 29.
This court has federal question jurisdiction over this action.
BACKGROUND
Although Congress first became involved with sexual-health education in the early 1900s, the passage of the Adolescent Family Life Act in 1982 provides the necessary context to frame the issues here. Pub. L. No. 97-35,
However, in fiscal year 2010, Congress charted a new course by creating the Teen Pregnancy Prevention ("TPP") Program. See Consolidated Appropriations Act of 2010, Pub. L. No. 111-117,
In tandem with the creation of the TPP Program, HHS has sponsored the "TPP Evidence Review," i.e., an ongoing systematic review of TPP research to identify programs with evidence of effectiveness in reducing teen pregnancy, STIs, and associated sexual risk behaviors. ECF # 33-2. Every consolidated appropriations act since 2010 has made funding available to conduct the TPP Evidence Review. See, e.g. , 2010 CAA, 123 Stat. at 3253 (appropriating $4,455,000 "to carry out evaluations (including longitudinal evaluations) of teenage pregnancy prevention approaches"); Consolidated and Further Continuing Appropriations Act, 2015, Pub. L. No. 113-235,
In April 2010, Mathematica published the results of its initial review in which it identified 28 programs proven effective in preventing teen pregnancies, sexually transmitted infections ("STIs"), or sexual risk behaviors. See ECF # 33-2, at 7-8, 15. At HHS's request, Mathematica has updated its findings five additional times (in April 2012, July 2014, February 2015, April 2016, and April 2018), resulting in the identification of 20 additional programs showing evidence of effectiveness in preventing teen pregnancies, STIs, or sexual risk behaviors. ECF # 33-2, at 12; ECF # 33-25, at 1 ("the total number of programs meeting the review criteria for evidence of effectiveness is now 48"); Mathematica Policy Research, Review Protocol Version 5.0 at 1, https://tppevidencereview.aspe.hhs.gov/pdfs/TPPER_Review%20Protocol_ v5.pdf.
In 2009, through the Office of Adolescent Health ("OAH"), HHS issued a Tier 1 Funding Opportunity Announcement ("FOA"), soliciting applications for five-year grants for fiscal years 2010 through 2014 ("First Cohort"). See ECF # 33-3 ("2010 FOA"). In 2014, OAH issued two Tier 1 FOAs, soliciting applications for five-year grants for fiscal years 2015 through 2019 ("Second Cohort"). ECF # 33-8 ("2015 Tier 1A FOA"); ECF # 33-9 ("2015 Tier 1B FOA"). Under the 2010 Tier 1 FOA, funding was restricted to "evidence-based programs that have been shown to reduce teenage pregnancy, behavioral risk factors underlying teenage pregnancy, or other associated risk factors." ECF # 33-3, at 3-4. The 2010 Tier 1 FOA defined "[e]vidence-based program models" to mean "[p]rogram models for which systematic empirical research or evaluation has provided evidence of effectiveness." Id. at 44. Applicants could either replicate programs identified as effective by Mathematica's "independent, systematic review of the evidence base," or replicate other programs if they met "a set of stringent criteria," including review by Mathematica "using the same evidence review criteria" it used in its independent review. Id. at 6-7. The 2015 Tier 1A and Tier 1B FOAs similarly required that grantees replicate "[p]rograms identified by HHS as having undergone a rigorous evaluation [and] been shown to be effective at preventing teen pregnancies, sexually transmitted infections, and/or sexual risk behaviors." ECF # 33-8, at 79; ECF # 33-9, at 89.
In 2018, HHS requested "$0.00" or a "decrease of $100,808,000 from the FY 2017" budget for the TPP Program. ECF # 33-16, at 6 ("The Budget eliminates the TPP program."). However, Congress declined the invitation to eliminate the TPP Program when it issued the 2018 CAA, retaining the same operative text used in prior consolidated appropriations acts since it created the program. Compare 2010 CAA, 123 Stat. at 3253 with 2018 CAA, 132 Stat. at 733.
Although the Second Cohort of grants ran through fiscal year 2019, HHS terminated 81 TPP Program grants without explanation on June 30, 2018. In four separate lawsuits, courts held that HHS's actions *1053were unlawful on grounds it violated the APA. Healthy Teen Network v. Azar ,
In 2015, the County received a $6.25 million, five-year Tier 1B grant as part of the Second Cohort so that it could offer comprehensive sexual education through the Adolescents & Communities Together ("ACT") program. ECF # 28, ¶ 86. The County alleges that it plans to compete for a grant under the 2018 Tier 1 FOA. Id. ¶ 92. If the County does not obtain some or all of its remaining Second Cohort funding, it plans to use the funds it receives through the 2018 Tier 1 FOA toward sustaining the ACT program. Id. If the County is successful in obtaining all of its Second Cohort funding, it would use the funds from the 2018 Tier 1 FOA to expand evidence-based, comprehensive sexual education. Id.
Before this court is the question of whether the 2018 Tier 1 FOA issued on April 20, 2018, is lawful.
DISCUSSION
I. Consideration of Evidence Outside the Administrative Record
The County has submitted a number of extra-record materials in support of its various arguments. Typically, judicial review of an agency decision is restricted to documents in the administrative record.
It will often be impossible, especially when highly technical matters are involved, for the court to determine whether the agency took into consideration all relevant factors unless it looks outside the record to determine what matters the agency should have considered but did not. The court cannot adequately discharge its duty to engage in a 'substantial inquiry' if it is required to take the agency's word that it considered all relevant matters.
If the reviewing court finds it necessary to go outside the administrative record, it should consider evidence relevant to the substantive merits of the agency action only for background information ... or for the limited purposes of ascertaining whether the agency considered all the relevant factors or fully explicated its course of conduct or grounds of decision.
The Ninth Circuit has more recently explained that the court may consider extra-record materials (1) if necessary to determine whether the agency has considered all relevant factors and has explained its decision, (2) when the agency has relied *1054on documents not in the record, (3) when supplementing the record is necessary to explain technical terms or complex subject matter, or (4) when the plaintiff makes a showing of agency bad faith. Sw. Ctr. for Biological Diversity v. U.S. Forest Serv. ,
The County asserts that the last two exceptions apply-the extra-record materials are necessary to explain technical terms and complex subject matter and to show the agency acted in bad faith. ECF # 58, at 12. This court does not have to decide whether those exceptions apply because this matter can be resolved without considering most of the extra-record materials the County has proffered. Moreover, in those instances where this court has considered extra-record documents, it is because the second exception has been satisfied, i.e., HHS relied on them in making its decision. For example, while the 2010 and 2015 Tier 1 FOAs are not contained in the administrative record, clearly HHS considered them in making its decision to alter course with the 2018 Tier 1 FOA. Also, the TPP Evidence Review is referenced repeatedly in the administrative record. See , e.g. , Press Release, August 28, 2017, AR000029 (referring to "TPP Program's approved list"); AR003250 (referring to TPP Evidence Review).
II. Article III Standing
To establish Article III standing, the County "must have (1) suffered an injury in fact, (2) that is fairly traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by a favorable judicial decision. Spokeo, Inc. v. Robins , --- U.S. ----,
Defendants do not assert that the County has failed to satisfy Article III's injury-in-fact and causation requirements. ECF # 42, at 11-12. Rather, defendants assert that the County's proposed relief-vacating the 2018 Tier 1 FOA-will not redress its alleged injury. Defendants contend that if this court vacates the 2018 Tier 1 FOA, the matter will have to be remanded back to HHS; however, the appropriation must be used by September 30, 2018, and it will be impossible to draft and promulgate a new FOA, receive applications, and issue new awards by that date. ECF # 42, at 12. ECF # 73, at 11. Thus, defendants contend, vacating the 2018 Tier 1 FOA will deprive every applicant-including the County-from receiving any funds. ECF # 42, at 12.
Contrary to defendants' contention, redressability does not hinge on whether the 2018 Tier 1 FOA funds will revert to the Treasury on September 30, 2018. "In general, a federal agency's budget authority lapses on the last day of the period of which funds were obligated." Population Inst. v. McPherson ,
Additionally, the County seeks redress for a "competitive injury." "[W]hen challenged agency conduct allegedly renders a [competitor] unable to fairly compete for some benefit, that [competitor] has suffered a sufficient 'injury in fact' and has standing." Preston v. Heckler ,
Here, the County contends that "[t]he changed terms of the new FOA have intensified the competition by allowing programs that do not qualify under" the 2018 CAA to apply. ECF # 29, at 31. This is sufficient to allege a competitive injury, and vacating the 2018 Tier 1 FOA is likely to redress that injury.
III. Reviewability Under Administrative Procedures Act
A. Final Agency Action
"The APA expressly declares itself to be a comprehensive remedial scheme: it states that a 'person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review'... and then sets forth the procedures for such review." Western Radio Serv. Co. v. United States Forest Service ,
For an agency action to be final, it must (1) mark the consummation of the agency's decision-making process and (2) be one by which rights or obligations have been determined, or from which legal consequences will flow. Bennett v. Spear ,
With respect to the second prong, legal consequences flow from an agency's decision that prohibits future federal funding. Arizona State Bd. for Charter Sch. v. U.S. Dep't of Educ. ,
Defendants contend there has been no final agency action because its issuance of the 2018 Tier 1 FOA is merely the "first step" in the decision-making process to award grants and "[s]everal steps must follow the FOA for a grant to be awarded." ECF # 42, at 14. However, while additional steps must be taken to actually award grants, no further steps need to be taken to disqualify applicants such as the County from receiving grants at all. As the County contends, "HHS's decision to adopt the unlawful criteria in the 2018 Tier 1 FOA is unequivocal and imposes significant legal and practical consequences on both the County and the agency." ECF # 58, at 7.
Indeed, the 2018 Tier 1 FOA plainly states:
We will review your application to determine whether it meets the following responsiveness criteria. If your application does not meet the responsiveness criteria, we will eliminate it from the competition and it will not be reviewed.
AR000060 (emphasis added). As part of the responsiveness criteria, an applicant must demonstrate that "[o]ne of the two eligible programs is clearly identified," i.e., the Systematic Method for Assessing Risk-avoidance Tool ("SMARTool") and the Tool to Assess the Characteristics of Effective Sex and STD/HIV Education Programs ("TAC").
Thus, the 2018 Tier 1 FOA unequivocally makes clear that if an application fails to identify "one of the two eligible programs," "it will not be reviewed and will receive no further consideration." AR000043-44, 61-62. This eligibility requirement, which by its terms eliminates an application from contention, amounts to the agency's "last word on the matter." Waiting to see which projects are actually funded before calling this a final agency action would force the County to engage in a futile exercise that would not put the parties in any meaningfully different posture than the one they are in now. Following such an approach would improperly disregard the "effect of the action" and fail to interpret finality in a pragmatic way. Oregon Nat. Desert ,
Defendants also fail to acknowledge that the 2018 Tier 1 FOA is the consummation of HHS's decision-making process. Before drafting the 2018 Tier 1 FOA, HHS "reviewed the rigorous evaluation studies of the TPP Program." Reply to Senator Murray, AR000442; see also Summary of Findings from TPPP Grantees, Tier 1 (FY2010-2014), AR000024. In a press release dated August 28, 2017, HHS announced that "[t]he evidence tells us that most of these programs are not working," "[c]ontinuing the TPP Program as it is currently structured would be a waste of taxpayer money," and it was "precisely for this reason that HHS chose to end the [current] implementation of the TPP Program." AR000029. That HHS engaged in this decision-making process further demonstrates that the 2018 Tier 1 FOA is its last word on eligibility criteria for TPP funding in fiscal year 2018. See Whitman ,
The second prong of the Bennett test is easily satisfied. Legal consequences flow from HHS's decision to deny federal funding to applicants who do not identify "one of the two eligible programs." See Arizona State Bd. ,
Remarkably, defendants contend that "[e]ligibility is not contingent on compliance with th[e] requirement" that an application identifies "one of the two eligible programs" in the 2018 Tier 1 FOA. ECF # 73, at 5 (emphasis in original). This ignores repeated statements in the 2018 Tier 1 FOA to the contrary, specifically that "OAH will fund projects that will replicate one of the two effective programs described in the summary," "[p]rojects are required to replicate a risk avoidance model or a risk reduction model that incorporates the common characteristics outlined in one of the two programs," and "[o]ne of the two eligible programs" must be "clearly identified" or OAH "will eliminate it from the competition and it will not be reviewed." AR000035,43-60. Defendants also contend that "[t]he identification requirement determines only whether the application is reviewed as an SRA [ (sexual risk avoidance) ] or an SSR [ (sexual risk reduction) ] project." ECF # 73, at 5. However, sexual risk avoidance and sexual risk reduction are at the core of the only "eligible programs" that may be considered under the 2018 Tier 1 FOA: the SMARTool, which describes "elements essential for effective sexual risk avoidance," and the TAC, which describes "elements of effective sexual risk reduction." AR000043.
Other courts have found that "final agency action" exists under circumstances analogous to those in this case. For example, in Nat'l Min. Ass'n v. Jackson , the court held that the Environmental Protection Agency's ("EPA") process and guidance memoranda regarding permitting under the Clean Water Act contained "unequivocal requirements" regarding the screening of permit applications and therefore constituted a final agency action.
The holding in Nat'l Min. Ass'n follows well-established precedent in the District of Columbia Circuit. See Appalachian Power Co. v. E.P.A. ,
Defendants seize on language in Rattlesnake Coal. v. EPA , where the Ninth Circuit stated that an agency "does not take a final agency action until it completes its review of the grant application and decides to disburse the appropriate funds."
Unlike Rattlesnake , the 2018 Tier 1 FOA leaves no room for additional agency action. Rather, the 2018 Tier 1 FOA unequivocally states that those applicants who fail to identify "one of the two eligible programs" "will not be reviewed and will receive no further consideration," and no appeals are allowed. AR000061-62 (emphasis in original). There is no further potential agency action that would render a denial based on these threshold eligibility criteria more "final."
Defendants' reliance on Planned Parenthood of Wisconsin, Inc. v. Azar ,
Citizens Alert Regarding Env't v. E.P.A. , another case cited by defendants, is similarly distinguishable. There, the plaintiffs sought injunctive relief against the construction of a sewer line on the basis that it failed to comply with the National Environmental Policy Act ("NEPA"). The court noted that the EPA was in the process of "conducting the review required by NEPA in association with the proposed grant, and ha[d] issued proposed findings, but ha[d] not yet made a final determination as to the environmental effects of the [project], or on whether to award the grant."
In their reply, defendants refer to the APA's definition of "relief" and suggest that it somehow supports the conclusion that a grant must be awarded before there can be relief. ECF # 73, at 4. "Agency action" is defined in the APA to include "the whole or a part of an agency rule, order, license, sanction, relief , or the equivalent or denial thereof, or failure to act."
Finally, at oral argument, HHS tried to make the distinction that unlike in Becerra , there is no requirement that the County certify compliance with the government's interpretation of a federal statute. This distinction is not material. In Becerra , the federal government required applicants *1061for certain law enforcement grants to certify compliance, under penalty of perjury, with the government's interpretation of a federal law regarding communications between government agencies and the Immigration and Naturalization Service.
B. Committed to Agency Discretion by Law
There is a " 'strong presumption that Congress intends judicial review of administrative action.' " ASSE Int'l, Inc. v. Kerry ,
"Agency action is committed to agency discretion in those rare instances where statutes are drawn in such broad terms that in a given case there is no law to apply, thereby leaving the court with no meaningful standard against which to judge the agency's exercise of discretion." ASSE Int'l ,
Defendants argue the 2018 Tier 1 FOA is not subject to judicial review because it reflects grant-making policy preferences that are committed to agency discretion. ECF # 42, at 14. Specifically, defendants contend there are no judicially manageable standards to evaluate the policy criteria HHS uses to administer funds where the statute leaves those criteria to the agency's discretion. Id. at 15-16.
"[T]o assess whether the court has a 'meaningful standard against which to judge the agency's exercise of discretion[,] we first look at the statute itself." ASSE Int'l ,
However, the 2018 CAA contains additional, specific mandates as follows:
... not more than 10 percent of the available funds shall be for training and technical assistance, evaluation, outreach, and additional program support activities, and of the remaining amount 75 percent shall be for replicating programs that have been proven effective through rigorous evaluation to reduce teenage pregnancy, behavioral risk factors underlying teenage pregnancy, or other associated risk factors, and 25 percent shall be available for research and demonstration grants to develop, replicate, refine, and test additional models and innovative strategies for preventing teenage pregnancy.
132 Stat. at 733 (emphasis added). These mandatory limitations afford a "statutory reference point" by which the court can review the 2018 Tier 1 FOA. Therefore, the presumption for judicial review of the 2018 Tier 1 FOA has not been overcome.
IV. Merits
Having concluded that this case is reviewable under the APA, the court turns to the merits of the parties' cross-motions for summary judgment. ECF ## 29, 42. A party is entitled to summary judgment "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). Where the questions are purely legal in nature, a court can resolve a challenge to a federal agency's action on a motion for summary judgment. Fence Creek Cattle Co v. U.S. Forest Serv. ,
A. Skidmore Deference
Defendants argue that HHS's interpretation of its authority under the TPP Program appropriation is entitled to deference. ECF # 42, at 21. Under Skidmore v. Swift & Co. ,
*1063However, "if the intent of Congress is clear, that is the end of the matter; for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress." Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc. ,
B. Count One
In Count One, the County asks the court to set aside the 2018 Tier 1 FOA because it is "not in accordance with law" under the APA; specifically, it violates the 2018 CAA, the Purpose Statute, and the Appropriations Clause. ECF # 28, at 35.
1. Applicable Law
Under the APA, the "reviewing court shall hold unlawful and set aside agency action, findings, and conclusions found to be arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. "
Nonetheless, Courts need not decide whether the agency engaged in reasoned decision-making or whether the agency's action was supported by the reasons proffered when that action is outside the scope of its lawful authority. See Michigan v. E.P.A. , --- U.S. ----,
The Purpose Statute,
"Article I grants this power to Congress, and Congress alone." City of Philadelphia v. Sessions ,
2. 2018 Tier 1 FOA
The 2018 Tier 1 FOA identifies two tiers: "Tier 1, in which grantees are required to replicate a program and Tier 2, in which grantees are required to test new and innovative strategies." AR000034. The 2018 Tier 1 FOA "solicits applications for Tier 1 projects to replicate and scale up one of two programs that include the protective factors shown to be effective in preventing teen pregnancy and/or sexual risk behaviors with youth."
"Strategies to address protective factors can take a risk avoidance approach or a risk reduction approach," and "[p]rojects are required to replicate a risk avoidance model or a risk reduction model that incorporates the common characteristics outlined in one of the two programs." AR000035, 44. Those approaches that identify as risk avoidance should replicate the SMARTool and those that identify as risk reduction should replicate the TAC. AR000045. Projects on a continuum may select either the SMARTool or TAC, but "must describe in detail how they replicate each element of one of the two programs."
3. SMARTool
Published in 2010, the SMARTool "is a research-based tool designed to help organizations assess, select, and implement effective programs and curricula that support sexual risk avoidance." ECF # 33-24, at 6. The SMARTool identifies nine elements of effective sexual risk avoidance projects:
(1) enhance knowledge of physical development and sexual risks and personal relationships,
(2) support personal attitudes and beliefs that value sexual risk avoidance,
(3) acknowledge and address common rationalizations for sexual activity, *1065(4) improve perception of and independence from negative peer and social norms,
(5) build personal competencies and self-efficacy to avoid sexual risk,
(6) strengthen personal intention and commitment to avoid sexual activity,
(7) identify and reduce the opportunities for sexual activity,
(8) strengthen future goals and opportunities, and
(9) partner with parents.
ECF # 33-24, at 14; AR000043.
4. TAC
The TAC is "an organized set of questions designed to help practitioners assess whether curriculum-based programs have incorporated the common characteristics of effective programs." ECF # 33-23, at 1-2. The TAC relies on a research study completed in 2006 to identify the common characteristics of effective sex and HIV education programs.
The TAC identifies 17 characteristics of effective programs:
1. Involved multiple people with different backgrounds in theory, research and sex and STD/HIV education to develop the curriculum.
2. Assessed relevant needs and assets of target group.
3. Used a logic model approach to develop the curriculum that specified the health goals, the behaviors affecting those health goals, the risk and protective factors affecting those behaviors, and the activities addressing those risk and protective factors.
4. Designed activities consistent with community values and available resources (e.g., staff time, staff skills, facility space and supplies).
5. Pilot-tested the program.
6. Focused on clear health goals - the prevention of STD, HIV and/or pregnancy.
7. Focused narrowly on specific behaviors leading to these health goals (e.g., abstaining from sex or using condoms or other contraceptives), gave clear messages about these behaviors, and addressed situations that might lead to them and how to avoid them.
8. Addressed multiple sexual psychosocial risk and protective factors affecting sexual behaviors (e.g., knowledge, perceived risks, values, attitudes, perceived norms and self-efficacy).
9. Created a safe social environment for youth to participate.
10. Included multiple activities to change each of the targeted risk and protective factors.
11. Employed instructionally sound teaching methods that actively involved the participants, that helped participants personalize the information, and that were designed to change each group of risk and protective factors.
12. Employed activities, instructional methods and behavioral messages that were appropriate to the youths' culture, developmental age and sexual experience.
13. Covered topics in a logical sequence.
14. Secured at least minimal support from appropriate authorities such as ministries of health, school districts or community organizations.
*106615. Selected educators with desired characteristics (whenever possible), trained them, and provided monitoring, supervision and support.
16. If needed, implemented activities to recruit and retain youth and overcome barriers to their involvement (e.g., publicized the program, offered food or obtained consent).
17. Implemented virtually all activities with reasonable fidelity.
Id. at 10; AR000043-44.
5. The County's Claims
The County's claims can be summarized in two broad categories: (1) the 2018 Tier 1 FOA fails to follow the mandate of the 2018 CAA because it limits funding to projects that replicate elements of the SMARTool and TAC, which are not "programs that have been proven effective through rigorous evaluation"; and (2) the 2018 Tier 1 FOA illegally allocates a portion of Tier 1 funding to Tier 2 and augments the Sexual Risk Avoidance Education Program ("SRAEP").
a. The SMARTool and TAC-Not Programs Under the 2018 CAA
The SMARTool and TAC are not programs, much less ones that have been proven effective through rigorous evaluation. The analysis begins with the language of the 2018 CAA, specifically the mandate that "75% shall be for replicating programs that have been proven effective through rigorous evaluation to reduce teenage pregnancy, behavioral risk factors underlying teenage pregnancy, or other associated risk factors." Where " 'a word is not defined by statute, [courts] normally construe it in accord with its ordinary or natural meaning' " and "may refer to standard English language dictionaries" to do so. United States v. Ezeta ,
Defendants contend that a program is defined as "simply any 'plan or system under which action may be taken toward a goal.' " This definition is essentially no different from the one set forth above or the one proffered by the County.
Moreover, the 2018 Tier 1 FOA requires applicants to "replicate each of the elements" of the SMARTool or TAC. AR000043. An element is only a "part" or "component" of the whole. See Element , DICTIONARY.COM, https://www.dictionary.com/browse/element?s=t (last visited Aug. 28, 2018) ("a component or constituent of a whole or one of the parts into which a whole may be resolved by analysis"). Adopting defendants' approach would be directly at odds with the mandate of the 2018 CAA, which requires that whole programs-not merely elements-be replicated.
HHS also ignores the qualifier that the programs must be "proven effective by rigorous evaluation." Defendants have offered no evidence that any program has ever been developed using the SMARTool or the TAC, let alone that such a program has been evaluated or resulted in a study demonstrating evidence of effectiveness.
The County contends that additional scoring criteria contained in the 2018 Tier 1 FOA is similarly problematic. The 2018 Tier 1 FOA states that points may be awarded for weaving the goal of optimal health into every component of the project, clearly communicating that teen sex is a risk behavior, providing skills to avoid risk, and providing cessation support. AR000090-91 ("Project Expectations and Priorities"). However, nothing in the record indicates that fulfilling these requirements has ever resulted in a program proven effective through rigorous evaluation.
In sum, "an agency is not free simply to disregard statutory responsibilities...." Lincoln , 508 U.S. at 193,
*1068Because the 2018 Tier 1 FOA is "not in accordance with law," it must be vacated. 5 U.S.C § 706(2)(A).
b. Impermissible Use of 75% Allocation
The County also contends that the 2018 Tier 1 FOA improperly transfers a portion of the 75% that is earmarked for replicating programs toward the 25% of funds dedicated to "research and demonstration grants to develop, replicate, refine, and test additional models and innovative strategies for preventing teenage pregnancy," i.e., from Tier 1 grants to Tier 2 grants. Indeed, the 2018 Tier 1 FOA contains language indicating that the funds will not be used solely for replicating programs. For instance, the 2018 Tier 1 FOA states that "[t]he purpose of this funding opportunity is to fund the evaluation of replication strategies that focus on protective factors." AR000048 (emphasis added). Clearly, evaluating replication strategies is distinguishable from replicating programs themselves. Elsewhere, the 2018 Tier 1 FOA requires applicants to provide "a proposal for rigorous evaluation and testing." Id. at 4, 19 (emphasis added). However, there would be no need to submit a proposal to rigorously evaluate and test programs if they have already been "proven effective through rigorous evaluation."
Moreover, as the County accurately observes, "the stated purpose of the 2018 Tier 1 FOAs is identical to that of the 2018 Tier 2 FOA, save for the deletion of the word 'replication.' " ECF # 29, at 21. Indeed, the stated purpose of the 2018 Tier 2 FOA is "to fund the evaluation of strategies that focus on protective factors shown to prevent teen pregnancy, improve adolescent health and address youth sexual risk holistically," while the purpose of the 2018 Tier 1 FOA is "to fund the evaluation of replication strategies that focus on protective factors shown to prevent teen pregnancy, improve adolescent health, and address youth sexual risk holistically." AR000048, 000139. Because the 2018 Tier 1 FOA is not limited to replicating programs proven effective through rigorous evaluation and instead directs funds towards Tier 2 research and evaluation efforts, it violates the 2018 CAA, the Purpose Statute, and the Appropriations Clause. The 2018 Tier 1 FOA further violates the 2018 CAA in that it allows for misappropriation in excess of this transfer limit. 2018 CAA, 132 Stat. at 736.
Defendants contend that the 2018 Tier 1 FOA contains language that is no different from "similar requirements" contained in the 2010 and 2015 FOAs. ECF # 42, at 23. For example, the 2010 Tier 1 FOA states that "OAH plans for a mixture of evaluation strategies to address the question of whether replications of evidence-based programs are effective" and that "all grantees will be expected to monitor and report on program implementation and outcomes through performance measures." 2010 Tier 1 FOA, ECF # 33-3, at 11. Defendants misconstrue the nature of the 2010 Tier 1 FOA requirements, as they do not conflict with the appropriation's mandate to replicate programs proven effective through rigorous evaluation. The 2010 Tier 1 FOA merely informed applicants that their performance would be evaluated in terms of whether their replications of evidence-based programs were effective. Whether the replication of a program was effective is a different inquiry than whether a program has previously been proven effective through rigorous evaluation. Here, as discussed at length above, requiring applicants to choose from elements of a "sexual risk reduction" or a "sexual risk avoidance" approach, when no such program has ever existed or been implemented before, necessarily conflicts with the appropriation's mandate that Tier 1 funds "shall be for replicating programs that *1069have been proven effective through rigorous evaluation."
The County also argues, but this time to no avail, that the 2018 Tier 1 FOA repurposes the Tier 1 appropriation to expand the funding pool for SRA grants under the SRAEP. ECF # 29, at 21-22; ECF # 58, at 20. In addition to appropriating funds to Tier 1 and Tier 2 grants, the 2018 CAA contains a separate provision appropriating $25 million "for making competitive grants which exclusively implement education in sexual risk avoidance (defined as voluntarily refraining from non-marital sexual activity)." 2018 CAA, 132 Stat. at 733.
The County contends that because the 2018 Tier 1 FOA requires that projects "clearly communicate risk," "provid[e] skills to avoid sexual risk," and incorporate messages of "optimal health" and "cessation support," the 2018 Tier 1 FOA unlawfully transfers funds from Tier 1 to SRA education programs. ECF # 58, at 20; AR000045-16. However, as the 2018 CAA's Tier 1 and SRA appropriations are not mutually exclusive, the 2018 Tier 1 FOA does not violate the Purpose statute as the County contends. The 2018 CAA requires Tier 1 funds be used to "replicate programs proven effective through rigorous evaluation to reduce teenage pregnancy, behavioral risk factors underlying teenage pregnancy, or other associated risk factors." Other than that, it does not mandate specific subject matter. That this argument fails, however, does nothing to save the 2018 Tier 1 FOA as it is unlawful for the many other reasons discussed above.
C. Counts Two and Three
Counts Two and Three also allege APA violations. In Count Two, the County contends that the 2018 Tier 1 FOA is arbitrary and capricious and an abuse of discretion for three reasons: (1) defendants did not provide a reasoned explanation for the changes to the criteria in the 2018 Tier 1 FOA and for the FOA's departure from the statute and past agency practice; (2) the criteria in the 2018 Tier 1 FOA run counter to the evidence before the agency; and (3) defendants prejudged the 2018 TPP Program competition with an unalterably closed mind and designed the 2018 Tier 1 FOA as a pretext for ending the TPP Program based on preconceived ideological animus. ECF # 28, ¶¶ 107-110; ECF # 29, at 27. In Count Three, the County contends that the 2018 Tier 1 FOA is contrary to an HHS regulation,
This court's decision on Count One is sufficient to vacate the 2018 Tier 1 FOA, as the County has requested. Having already concluded the 2018 Tier 1 FOA is "otherwise not in accordance with law" under
D. Count Four
An agency "has no power to act ... unless and until Congress confers power upon it." La. Pub. Serv. Comm'n v. FCC ,
Here, defendants lack authority to disregard Congress's mandate that Tier 1 funds "shall be for replicating programs that have been proven effective through rigorous evaluation," 2018 CAA, 132 Stat. at 733, and to instead direct funds to programs that do not meet that requirement. Defendants argue they have acted within the broad scope of the 2018 CAA to reassess the TPP Program and issue new funding criteria, ECF # 42, at 25, but that is clearly not the case for the reasons discussed above. Thus, the 2018 Tier 1 FOA is an ultra vires agency action as a matter of law and also must be vacated on that ground.
ORDER
The County's motion for summary judgment (ECF # 29) with respect to Counts One and Four is granted, and defendants' motion for summary judgment (ECF # 42) on those claims is denied. The County's motion for preliminary injunction (ECF # 29) is denied as moot. The motions for summary judgment (ECF ## 29, 42) regarding Counts Two and Three are also denied as moot.
The 2018 Tier 1 FOA is vacated. The parties shall confer and submit to the court by September 14, 2018, a proposed order suspending the lapse provision and extending the term of budget authority.
Due to the large number of briefs and exhibits that have been filed, they are referred to by ECF number instead of name, followed by the page number of the underlying document.
See, e.g. , Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. 104-193,
A provision of law requiring that the balance of an appropriation or fund be returned to the general fund of the Treasury at the end of a definite period does not affect the status of lawsuits or rights of action involving the right to an amount payable from the balance.
"The basis for this equitable power is the court preserving existing authority created by Congress rather than the creation of authority." Burton v. Thornburgh ,
Defendants do not argue that the County has failed to establish redressability on the basis that it ultimately may not receive the additional funds it seeks. Indeed, such an argument would lack merit. "[U]nder the 'procedural rights' doctrine, uncertainty regarding whether an agency will stay its course after following proper procedures on remand does not undermine redressability." Nw. Requirements Utilities v. F.E.R.C. ,
These "programs" and the legality of the 2018 Tier 1 FOA are discussed further in the Merits section, infra , Part IV.B.5.
Moreover, under HHS regulations, the eligibility criteria in the 2018 Tier 1 FOA are binding. See
The County contends that a program is defined as a "planned, coordinated group of activities, processes, and procedures designed to achieve a specific purpose." ECF # 59, ¶ 16(a).
In fact, the TAC explains that the "most promising approach is to review those curricula that have previously been demonstrated to be effective with populations of youth similar to [the target population] and that match the needs and resources of [the target] community and then to select one." ECF # 33-23, at 5.
While the authors of the TAC state "programs that incorporate all these characteristics are quite likely to reduce sexual risk-taking," ECF # 33-23, at 5, HHS has not identified a single study showing that this is, in fact, the case.
Additionally, the parties asked for "expedited consideration" of these motions and a ruling by August 31, 2018. ECF # 26.
Reference
- Full Case Name
- MULTNOMAH COUNTY, an existing county government and a body politic and corporate v. Alex M. AZAR II, in his official capacity as Secretary, U.S. Department of Health and Human Services Valerie Huber, in her official capacity as the Senior Policy Advisor for the Office of the Assistant Secretary of Health and U.S. Department of Health and Human Services
- Cited By
- 1 case
- Status
- Published