N.Y.S. Citizens' Coal. for Children v. Poole
N.Y.S. Citizens' Coal. for Children v. Poole
Opinion of the Court
Calabresi, Circuit Judge:
This case asks whether Spending Clause legislation that directs specific payments to identified beneficiaries creates a right enforceable through
Congress enacted the Adoption Assistance and Child Welfare Act of 1980 ("the Act") "to strengthen the program of foster care assistance for needy and dependent children." Pub. L. 96-272,
The particular question before us is whether the Act grants foster parents a right to these payments enforceable through a Section 1983 action. Three Courts of Appeals have reached this issue. The Sixth and Ninth Circuits have held that it does. Cal. State Foster Parent Ass'n v. Wagner ,
We join the Sixth and Ninth Circuits in holding that the Act creates a specific entitlement for foster parents to receive foster care maintenance payments, and that this entitlement is enforceable through a Section 1983 action. The district court, Kuntz J. , held to the contrary. Accordingly, we VACATE the order dismissing the case and REMAND for further proceedings.
I. Background
This appeal arises from a Section 1983 action filed in federal district court by the New York State Citizens' Coalition for Children ("the Coalition"). The Coalition's suit, brought on behalf of its foster parent members, alleges that the New York State Office of Children and Family Services ("the State") has failed to make adequate foster care maintenance payments as required by the Act.
The district court dismissed the Coalition's suit, holding that the Act creates no federally enforceable right to receive foster care maintenance payments. The Coalition appealed. On appeal, the State asserted, for the first time, that the Coalition lacked standing to bring this suit on behalf of its members. We remanded the case to the district court for additional factfinding on that issue. On remand, the district court found that the Coalition has standing: The Coalition must expend resources to advise and assist foster parents because of the State's allegedly inadequate reimbursement rates.
The Coalition then returned to this Court for review of the district court's original holding that they could not enforce the Act through Section 1983. The State, yet again, raised a new argument on appeal, this time that the Coalition lacks standing to bring this suit under the third-party standing rule.
Before considering the original issue before us-that is, whether the Act creates a federally enforceable right to receive foster care maintenance payments-we must address the State's claim that the Coalition lacks organizational and third-party standing to litigate these claims on behalf of its foster parent members.
II. Standing
To bring a Section 1983 suit on behalf of its members, an organization must clear two hurdles. First, it must show that the violation of its members' rights has caused the organization to suffer an injury independent of that suffered by its members. Nnebe v. Daus ,
A. Organizational Standing
In a string of opinions, this Court has held that organizations suing under *75Section 1983 must, without relying on their members' injuries, assert that their own injuries are sufficient to satisfy Article III's standing requirements. Nnebe ,
The Coalition asserts that the State's alleged violations of the Act has cost it hundreds of hours in the form of phone calls from aggrieved foster families. The district court found, and we agree, that the Coalition has spent nontrivial resources fielding these calls, and that it will continue to have to do so absent relief. This showing is sufficient to establish that the Coalition has suffered its own injury.
B. Third Party Standing
When any plaintiff asserts the rights of others, it has traditionally also faced, in our court, a rule of prudential standing: the so-called third-party standing bar. With some exceptions, this rule prevents "litigants from asserting the rights or legal interests of others [simply] to obtain relief from injury to themselves." Keepers, Inc. v. City of Milford ,
There is considerable uncertainty as to whether the third-party standing rule continues to apply following the Supreme Court's recent decision in Lexmark v. Static Control Components, Inc. ,
But we need not, in the case before us, resolve this tension. Whatever the status of the third-party standing bar, our cases have developed an exception to it where a plaintiff can show "(1) a close relationship to the injured party and (2) a barrier to the injured party's ability to assert its own interests." Keepers, Inc. ,
It is evident that the Coalition enjoys a close relationship with the foster parents it counsels, not least because those foster parents have authorized the Coalition to file suit on their behalf. The State argues, however, that the Coalition has failed to show that it would be "difficult if not impossible" for the foster parents to protect their own rights. December 22, 2017 Appellee Letter Br. at 14. But the third-party standing rule does not demand anything near impossibility of suit. See 15 James William Moore, Moore's Federal Practice § 101.51[3][c][iii] (3d ed. 2008). Instead, a mere "practical disincentive to sue"-such as a desire for anonymity or the fear of reprisal-can suffice to overcome the third-party standing bar.
And here, the Coalition has demonstrated that the manifest desire of their foster parent members for anonymity constitutes a significant disincentive for those parents *76to sue in their own names. It did so by submitting an anonymous affidavit from one of its members articulating two reasons the member desired anonymity. First, the member feared retaliation because a state agency had previously retaliated against them after they had lodged a complaint against it. Second, the parent also sought to protect their anonymity out of concern for their foster children's well-being:
Even if the names of my children are filed under seal or redacted from public documents, disclosure of my name... puts my foster children's anonymity at risk... The children that have come from traumatic and often abusive environments. Any negative repercussions resulting from the public disclosure of the fact that they are all in foster care will only add to their history of trauma, and I want to protect my children from that.
D. Ct. Dkt. # 17-3 ¶¶ 10-11. It is no stretch to believe that foster parents, who have opened their homes to children in need, would forgo financial benefits to protect those children.
We are thus satisfied that the Coalition is properly positioned to represent its members' rights effectively. And we are satisfied that those members are significantly impaired from pursuing those rights on their own. Accordingly, we conclude that the third-party standing rule does not bar the Coalition from pursuing its claims.
III. A Right to Foster Care Maintenance Payments Enforceable through Section 1983.
Having found that the Coalition has standing, we turn to the main question in this case: Do foster parents have a right to foster care maintenance payments enforceable through a Section 1983 action? Section 1983 is a vehicle for individuals to enforce "any right [ ] ... secured" by federal law.
Our review of the Act's text and statutory structure leads us to conclude that Congress did indeed create a specific monetary entitlement aimed at assisting foster parents in meeting the needs of each foster child under their care. What is more, we find that the Act's provision of (limited) federal agency review for a state's substantial compliance is insufficient to supplant enforcement through Section 1983. We therefore hold that the Coalition can bring a Section 1983 action on behalf of its foster parent members.
A. Statutory Background
The Adoption Assistance and Child Welfare Act of 1980,
1. State Plan Requirements. To receive federal aid under the Act, states must submit a plan for approval to the Secretary of Health and Human Services (the Secretary). Section 671 details what a *77state plan must provide to qualify. Section 671's requirements are numerous and far-ranging; they run from dictating how information about individuals involved in the foster care system may be disclosed,
2. Foster Care Maintenance Payments . Once a state plan has been approved, Section 672, titled "Foster care maintenance payments programs," directs participating states-that is, states with an approved plan-to make maintenance payments to foster parents on behalf of each foster child under their care. Section 675 then defines the costs that compose those payments.
The mandate appears in Subsection 672(a)(1). This subsection, titled "Eligibility," has two components. The first provides that "[e]ach State with a plan approved under this part shall make foster care maintenance payments on behalf of each child ...."
Subsection 672(b) provides that the state can make these payments either to the child's foster parent, to the institution where the child is placed, or to a local agency.
Section 675 then defines what exactly constitutes a "foster care maintenance payment":
[T]he term "foster care maintenance payments" means payments to cover the cost of (and the cost of providing) food, clothing, shelter, daily supervision, school supplies, a child's personal incidentals, liability insurance with respect to a child, reasonable travel to the child's home for visitation, and reasonable travel for the child to remain in the school in which the child is enrolled at the time of placement.
Section 675(4) further states that these payments "shall include," for institutional placements, the reasonable costs of operating the institution, and "shall also include" the costs of caring for the offspring of any foster children if the foster child and his or her children are in the same placement. In defining foster care maintenance payments, the Act exclusively uses mandatory language.
3. Federal Reimbursement. Section 674 details when a state is entitled to reimbursement from the Federal Government. Briefly put, states are entitled to reimbursement of a percentage of payments made under Section 672, as well as other costs including training and information systems expenditures.
4. Review and Enforcement Mechanisms . The Act creates three avenues for review of a state's compliance with its obligations under the Act: two through the state and one through the Secretary.
Both avenues for state review are dictated by Section 671, the section governing the requirements the state must meet to *78qualify for the program. First, Section 671 requires the state to conduct "periodic review of the ...amounts paid as foster care maintenance payments ...to assure their continuing appropriateness."
The third avenue for review, found in Section 1320a-2a, is the only avenue for federal review expressly provided for in the Act. Section 1320a-2a directs the Secretary to create regulations to ensure states' "substantial conformity" with the dictates of federal law and the state's own plan.
The State has not pointed us to any mechanism for the Act's beneficiaries to obtain federal review of their claims. Thus, the only mechanism of federal control over state behavior is the cutting off of funds. Nor has the State pointed us to any claim-processing requirements-e.g., no burdens of proof, exhaustion requirements, or limitation of remedies-that allowing a Section 1983 action would upset.
* * *
In sum, the Act requires a state to submit a plan to the Secretary for approval. Once the Secretary approves the state's plan, the Act directs the state to make payments to foster parents on behalf of each eligible child to cover costs such as food, clothing, and school supplies. The Federal Government then reimburses the state for a percentage of those payments so long as it remains in "substantial compliance" with its own plan, the regulations of the Secretary, and the requirements of the Act. While the Act requires states to conduct internal review and contemplates that the Secretary will ensure that the state remains in substantial compliance, the only individual review mechanism specifically provided for in the Act is at the state level.
B. The Presumption
The Supreme Court, in Blessing v. Freestone ,
If a statute grants a right to a plaintiff class, the right is fit for judicial enforcement, and the state is obligated to *79fulfill the right, then a rebuttable presumption attaches that a Section 1983 action enforcing the right is available.
The dissent attempts to cast doubt on whether Blessing 's three-factor test remains good law after Gonzaga . Gonzaga , however, did not overrule Blessing ; rather, it clarified the rule in Blessing by correcting a misinterpretation of that rule that had been adopted by some lower courts. See Gonzaga ,
1. Binding Obligation. Since the State argues that the Act's regulation of foster care maintenance payments is permissive and not mandatory, we first consider whether the Act imposes a binding obligation on participating states. In the State's view, the Act merely details what expenses may be included in the payments (i.e. will be reimbursed by the Federal Government), not what expenses must be included.
This construction is belied by the Act's text. As we pointed out earlier, the Act does not use permissive language-either in creating the obligation for the state to make payments to foster parents, or in defining what expenses those payments must account for. The Act, instead, uses clearly mandatory language-"shall"-binding states to make these payments.
Undaunted, the State argues that the title of Section 672(a), "Eligibility," demonstrates that Section 672 is intended to outline only which portions of the foster care maintenance payments made by a state are eligible for federal reimbursement. But the State plainly misreads Section 672(a). Its title is a reference to which foster children are eligible to have maintenance payments made on their behalf, not which payments by a state are eligible for federal reimbursement.
The overall statutory structure confirms the untenability of the State's reading. Where Congress limited which state payments are eligible for federal reimbursement, it did so explicitly. So in Subsections 672(d) and (e), which are addressed to children who have been removed from the home pursuant to a voluntary placement agreement, the Act clearly states that "Federal payments may" (or *80may not) be made. And it is not Section 672, but another section entirely-Section 674, titled "Payment to States"- that delineates the specifics of a state's entitlement to reimbursement from the Federal Government.
2. Conferral of Rights. Having determined that the Act creates an obligation for participating states to make payments covering the costs detailed in Section 675(4), the question remains whether that obligation is also an enforceable right vested in foster parents.
As mentioned earlier, a statute must "manifest[ ]" Congress's " 'unambiguous' intent to confer individual rights" in order to support a Section 1983 action. Gonzaga ,
Such an inquiry has led the High Court to hold that statutory provisions with a programmatic focus do not create enforceable rights. In Gonzaga , a student plaintiff sought to enforce a provision of the Family Educational Rights and Privacy Act of 1974. The provision the student plaintiff relied on read:
No funds shall be made available under any applicable program to any educational agency or institution which has a policy or practice of permitting the release of education records (or personally identifiable information contained therein ...) of students without the written consent of their parents to any individual, agency, or organization.
Gonzaga ,
Similarly, in Blessing , custodial parents sought to enforce Title IV-D of the Social Security Act,
*81
In contrast, "[t]he Supreme Court has repeatedly recognized that a federal statute [that] explicitly confers a specific monetary entitlement on an identified beneficiary" does create an enforceable right. Cal. State Foster Parent Ass'n ,
Section 672(a) and (b) of the Child Welfare Act grants precisely such a specific entitlement to an identified class of beneficiaries. The Act is aimed directly at the needs of individual foster children, and, to meet those needs, it grants a monetary entitlement to those children's foster parents.
First, Section 672(a) is focused on the needs of individual foster children. The Act's use of the term "each child" indicates an individual focus.
The definition of "foster care maintenance payments" in Section 675(4) buttresses this reading of Section 672(a). These payments relate to basic life essentials: food, clothing, shelter. Congress, in employing this definition of foster care maintenance payments, again demonstrates a concern with individual need in its most basic sense.
Second, the Act designates foster parents as the intended recipients of the payments. Section 672(a) states that payments are made "on behalf of" each foster child and Subsection (b) nominates foster parents *82as one of three proper recipients of the payments. Thus, the Act, which is directly concerned with the needs of foster children,
This case is therefore much closer to Wilder and Wright , where the Supreme Court found an enforceable right, than it is to Gonzaga and Blessing , where it did not. As in Wilder and Wright , the Act "unambiguously confer[s]" a "mandatory benefit," or "entitlement," to a discernible group of rights holders. See Gonzaga ,
3. Fit for Judicial Enforcement. Even if a statute seems to vest rights in plaintiffs, those rights must be fit for judicial enforcement for a Section 1983 suit to lie. In other words, the right cannot be "so vague and amorphous that its enforcement would strain judicial competence." Blessing ,
The provisions of the Act requiring states to make foster care maintenance payments are fit for judicial enforcement. Section 672(a), read with Sections 672(b) and 675(4), creates a right to payments that cover certain expenses like food, shelter, and school supplies. In enforcing foster parents' right to sue for such payments, courts would, therefore, be required to review how a state had determined the amounts it pays, including how it has quantified the costs of the specific expenses listed in Section 675(4). This review falls comfortably within what courts regularly do: it requires primarily fact-finding and only very limited review of policy determinations.
The Child Welfare Act does give states some discretion as to how to calculate costs and to distribute payments. And *83courts may well defer to reasonable exercises of that discretion. See Wagner ,
The provision of the Medicaid Act at issue in Wilder required states to set rates that were "reasonable and adequate" to reimburse "efficiently and economically operated" health care facilities.
If rate-settings that require a state to determine what is reasonable, adequate, efficient, and economical are fit for judicial review, then rate-setting that merely requires a state to quantify costs for set expenses must also be. Accordingly, we find that foster parents' right to receive foster care maintenance payments is fit for judicial enforcement.
* * *
In sum, applying the Blessing factors to this case, we conclude that the Act meets the requirements to create a presumption that foster parents have a right to foster care maintenance payments that cover the enumerated expenses that is enforceable through Section 1983.
C. The Rebuttal
But even when a statute grants such a right to a plaintiff class, resort to Section 1983 is barred when the statute provides "remedial mechanisms ... sufficiently comprehensive and effective to raise a clear inference that Congress intended to foreclose a [ Section] 1983 cause of action." See Wright ,
*84The State is mistaken. The Supreme Court has often rejected arguments that a statute's remedial scheme forecloses a Section 1983 action. Blessing ,
No such avenue exists here. The Act provides no federal court review of an individual's claim, other than what, under Blessing , is presumptively available under Section 1983.
The Supreme Court has made clear that a federal agency's "generalized powers are insufficient to indicate a congressional intent to foreclose [ Section] 1983 remedies." Wright ,
This outcome is wholly consistent with the Supreme Court's precedent in Armstrong v. Exceptional Child Center, Inc. , --- U.S. ----,
Second, the court in Armstrong , in denying the existence of a cause of action in equity as to the statute before it, relied on "[t]he sheer complexity associated with enforcing § 30(A), coupled with the express provision of an administrative remedy." Armstrong ,
* * * *
The Act uses mandatory language, binding participating states. It evinces a Congressional focus on meeting the needs of individual foster children and translates that focus into a specific monetary entitlement granted to an identified class of beneficiaries: foster parents. The Act, moreover, provides sufficient guidance to courts to make the right appropriate for judicial enforcement. Since the Act does not provide any other federal avenues for foster parents to vindicate that right, the right is enforceable through Section 1983. Accordingly, we VACATE the order of the district court and REMAND for further proceedings.
Debra Ann Livingston, Circuit Judge, dissenting:
The Child Welfare Act of 1980 ("the CWA" or "the Act"), provides a mechanism for partial federal reimbursement of a subcategory of state expenditures on foster care. See
I disagree on both counts. This Court may not recognize a right enforceable under § 1983 unless Congress has "manifest[ed] an 'unambiguous' intent to confer" such a right. Gonzaga Univ. v. Doe ,
"[T]he National Government, anxious though it may be to vindicate and protect federal rights ..., always endeavors to do so in ways that will not unduly interfere with the legitimate activities of the States." Levin v. Commerce Energy, Inc. ,
I
A
In 1980, Congress enacted the CWA, also known as Title IV-E of the Social Security Act, to assist states in providing foster care in appropriate circumstances and for appropriate periods by offering "fiscal incentives to encourage a more active and systematic monitoring of children in the foster care system." Vermont Dep't of Soc. & Rehab. Servs. v. U.S. Dep't of Health & Human Servs. ,
As relevant here, the CWA provides for partial reimbursement of "foster care maintenance payments" and requires each state plan to "provide for [such] payments in accordance with section 672" of the Act.
*87Midwest Foster Care and Adoption Ass'n v. Kincade ,
payments to cover the cost of (and the cost of providing) food, clothing, shelter, daily supervision, school supplies, a child's personal incidentals, liability insurance with respect to a child, reasonable travel to the child's home for visitation, and reasonable travel for the child to remain in the school in which the child is enrolled at the time of placement. In the case of institutional care, such term shall include the reasonable costs of administration and operation of such institution as are necessarily required to provide the items described in the preceding sentence.
The Act, in pertinent part, provides for two review mechanisms to ensure state compliance with its provisions. The first requires HHS to issue regulations to monitor participating states' "substantial conformity" with the Act's requirements.
• "specify the timetable for conformity reviews of State programs";
• "specify ... the criteria to be used ... to determine whether there is a substantial failure to so conform"; and
• afford a noncomplying State the "opportunity to adopt and implement a corrective action plan."
The second review mechanism is more particular to the foster care maintenance payments at issue here. The CWA requires states both to periodically review these payments "to assure their continuing appropriateness" and to provide an opportunity for caregivers whose claims for payments have been denied to receive "a fair hearing before the [relevant] State agency."
*88The majority ends its brief discussion of the statute with a summary of these statutorily imposed review mechanisms. In doing so, it ignores the complex state and local foster care systems that predate the CWA. As New York reminds us, CWA funding "covers only a portion of the State's expenses, and New York's foster care program serves a broader range of children and spends money on a broader range of items and services than the federal statute covers." Br. Def-Appellee at 11-12. Before the CWA's passage, states decided the reimbursement rate for foster care providers, and payment rates varied widely. Such variance continues today, and unsurprisingly so, given that the CWA did not displace preexisting foster care systems but merely created a mechanism for partial reimbursement of a specified set of expenses associated with some children. See Kerry DeVooght et al., Family Foster Care Reimbursement Rates in the U.S., tbl. 1 at 9-18 (2013), http://perma.cc/HY82-Q3AF.
New York's complex foster care program is largely administered at the local level. County social services departments are responsible for making payments to foster care providers in the first instance. These county departments, in turn, are reimbursed by New York's Office of Children and Family Services ("OCFS") up to certain maximum amounts.
In sum, the CWA represents a federal effort to incentivize state provision of adequate foster care arrangements. In doing so, the CWA provides important financial support to states, but this support extends to only a portion of large and complex state and local foster care systems, which themselves involve a complicated interplay between local demands and state funding. As for New York's foster care plan, it has been approved by the Secretary since 1982, and HHS has routinely found New York to be in compliance with the CWA.
B
Only with this background in mind does the full import of the majority's decision become clear. The majority first decides, in effect, that New York may well have been operating in rank violation of the CWA for over 35 years. (Inexplicably, no one seems to have noticed until now.) According to the majority, the partial federal reimbursement scheme enshrined in the CWA imposes a minimum foster care spending obligation on recipient states, which must cover the cost of a litany of specific items dictated by the federal government. This supposed spending obligation arises (again, according to the majority) because the Act employs "mandatory language" in § 672(a), which provides that participating states "shall make foster care maintenance payments," and then defines "in absolute terms" in § 675(4)(A) the expenses that constitute these mandatory "payments."
*89Maj. Op. at 79-80. New York argues, to the contrary, that § 672(a) specifies the conditions under which states can receive federal reimbursement and that § 675(4)(A)'s definition of "foster care maintenance payments" simply "provide[s] an allowable list of items" for this reimbursement. Br. Def-Appellee at 26. But the majority rejects New York's argument and decides that any state whose payment rates fall short of covering the total "cost of (and the cost of providing)" all the items listed in § 675(4)(A) runs afoul of the statutory prerequisites for compliance with the CWA.
Respectfully, I disagree. I join the Eighth Circuit in concluding that §§ 672(a) and 675(4)(A)"speak to the states as regulated participants in the CWA and enumerate limitations on when the states' expenditures will be matched with federal dollars." Midwest Foster Care,
The majority reaches its contrary result only by reading both §§ 672(a) and 675(4)(A) selectively, rather than in light of the CWA as a whole. Cf. Util. Air Regulatory Grp. v. E.P.A. ,
The majority argues that § 675(4)(A) must specify the precise costs that states are required to pay because, in its view, § 672(a)(1), entitled "Eligibility," provides that participating states "shall make foster care maintenance payments" and specifies "which foster children are eligible to have maintenance payments made on their behalf." Maj. Op. at 79. But this is wholly consistent with the view that § 672(a)(1) sets out conditions for federal reimbursement-not a spending mandate. It is unsurprising that a statute providing for partial federal reimbursement of a portion of the costs associated with taking care of some foster children (and subject to the state complying with conditions for appropriate placement) would have a section devoted to delineating the category of children whose costs are eligible for reimbursement, and under what conditions. Indeed, the CWA is replete with provisions establishing such eligibility criteria. It is notably lacking, however, any provisions that clearly and cleanly mandate a spending minimum that participating states must pay for the items enumerated in § 675(4)(A).
Accordingly, § 672(a)(1) itself devotes far fewer words to the remittance of foster care maintenance payments by states than to factors curtailing the situations in which such remittances should be made. As noted, § 672(a)(1) makes clear that such payments are to be made on behalf of children removed from their homes only if removal and placement criteria have been met ("and the placement continues to meet" these criteria), and only then if "the child, while in the home, would [also] have met [specified] AFDC eligibility requirement[s]." Read as a whole, § 672(a)(1) thus "serve[s] as a roadmap for the conditions a state must fulfill in order for its expenditure to be eligible for federal matching funds," Midwest Foster Care ,
Indeed, if §§ 672(a)(1) and 675(4)(A) unambiguously imposed a spending obligation on the states in "absolute terms," as the majority would have it, that obligation would surely be easier for the majority to define. If "legislation enacted pursuant to the spending power is much in the nature of a contract,"
The majority studiously avoids going quite that far. But it does so only by ducking any real specification of what the CWA now requires. Thus, the CWA, it says, "give[s] states some discretion as to how to calculate costs and to distribute payments" and courts "may well defer to reasonable exercises of that discretion." Maj. Op. at 83. Yet § 674(A)(4) does not itself contain such qualifications, making it difficult to discern where the majority got them. Cf. Alabama v. North Carolina ,
Ultimately, the majority's rejiggering of the CWA results in a curious bargain for New York to have struck-a bargain in which New York supposedly relinquished to federal courts its longstanding control over discretionary judgments about payment rates for foster care providers in exchange for partial reimbursement of some expenses incurred in the care of a declining percentage of foster care children.
It is perhaps for all the above reasons that the agency tasked with implementing the Act, HHS, has not interpreted §§ 672(a)(1) and 675(4)(A) as imposing a minimum spending mandate on the states for the enumerated items in § 675(4)(A). The definition of "foster care maintenance payments" in HHS regulations promulgated under the CWA tracks § 675(4)(A)'s definition, but the regulation continues: "[l]ocal travel associated with providing the items listed above is also an allowable expense ."
II
But there's a bigger problem with the majority's decision. For even if I'm wrong about the proper interpretation of §§ 672(a)(1) and 675(4)(A) -even if § 672(a)(1) does require states to make payments covering each of the categories of costs enumerated in § 675(4)(A) on behalf of eligible foster children-this requirement would, at most, implicate the federal government's reimbursement obligations under the Act. The majority concludes, to the contrary, that a subset of New York caregivers have a right, enforceable under
A
Section 1983 provides a cause of action to remedy violations by state actors of "any rights, privileges, or immunities secured by the Constitution and [federal] laws."
The Court has grown increasingly wary of recognizing new private rights of the sort at issue here, enforceable under § 1983.
The Supreme Court has held that Spending Clause legislation created an individually enforceable right under § 1983 in only three cases. See Wilder v. Va. Hosp. Ass'n ,
In outlining the Supreme Court's jurisprudence in this area, then, I am not predicting the future but instead faithfully following existing precedent. The Court has held that unless Congress "speaks with a clear voice and manifests an unambiguous intent to confer individual rights, federal funding provisions provide no basis for private enforcement by § 1983." Gonzaga ,
B
The majority structures its analysis around the three Blessing factors.
In any event, here, each of the Blessing factors presents formidable obstacles for the Plaintiff-Appellant. Though I will not belabor the points, the analysis of the statutory scheme provided in Part I, supra , disposes of the first and third Blessing factors. Briefly, as to the first factor, whether "Congress ... intended that the provision benefit the plaintiff," Blessing ,
As to the third Blessing factor: § 675(4)(A), correctly interpreted as listing the state expenditures eligible for reimbursement, does not "unambiguously impose a binding obligation on the State," Blessing ,
I focus principally here on the second Blessing factor-that is, whether the asserted right is so deeply "undefined" that its enforcement would "strain judicial competence." Blessing ,
The Plaintiff-Appellant seeks to enforce through § 1983 an alleged federal right of certain New York foster child caregivers to receive "foster care maintenance payments" under
This argument raises the threshold question of how to calculate "the cost of (and the cost of providing)" the items listed in § 675(4)(A). The Plaintiff-Appellant essentially contends that there is an objective "cost" to each of the enumerated items, and that New York caregivers receiving foster care maintenance payments have a § 1983 right to payments sufficient to cover that "cost." Relying on a 2007 study by the National Foster Parent Association, Children's Rights and the University of Maryland School of Social Work ("the 2007 Study"),
These assertions do not withstand even minimal scrutiny. In reality, calculating the "cost" of the § 675(4)(A) items implicates numerous and difficult policy judgments about foster care and childrearing, not to mention overall program administration, that federal judges are ill equipped to make and that go entirely unaddressed in the statute that the majority interprets to unambiguously require such judgments. The Plaintiff-Appellant points to the 2007 Study as a benchmark for performing these cost calculations. But even a cursory examination of this study reveals how arbitrary the administration of § 675(4)(A) by federal judges would likely be.
As an initial matter, the 2007 Study bases its cost estimates on survey data from a Consumer Expenditure Survey of the Bureau of Labor Statistics of the United States Department of Labor, which is a national survey of household expenditures. Yet the Plaintiff-Appellant's own submissions imply that state foster care maintenance rates should be at least state, if not county-specific. See Br. for Pl-Appellant at 4 (protesting that New York's "foster care maintenance payment rates rank below those of States where the cost of living is significantly lower"). Whether and how a state should take account of geography in setting its maintenance rates is not addressed in the CWA and is certainly not a question of "basic arithmetic."
Furthermore, the 2007 Study's recommended payment rates do not vary based on a family's income level. See 2007 Study at 40. Instead, the 2007 Study creates a uniform maintenance rate based on the national spending habits of middle-income families, on the assumption that the spending habits of these families represent an accurate cost estimate for all families.
The above-listed issues provide just a sampling of the problems inherent in recognizing a § 1983 right in §§ 672(a)(1) and 675(4)(A) of the CWA. This sampling is enough to show that it is fanciful to claim that Congress manifested in the CWA an unambiguous intent to confer on *97a subset of foster child caregivers this private right of action, with nary a statutory word as to the criteria to be used in reaching judgments about whether a state's payments for the items enumerated in § 675(4)(A) are sufficient. The Supreme Court has been particularly reluctant to conclude that a federal cause of action exists where, as here, the required remedy would entail judicial ratemaking, given that "[t]he history of ratemaking demonstrates that administrative agencies are far better suited to this task than judges." Armstrong ,
The majority, likely cognizant of the irregular role it today forces upon federal judges, remains somewhat evasive about the precise contours of the § 1983 right that it recognizes. The right seems to "require" courts "to review how a state ha[s] determined the amounts it pays, including how it has quantified the costs of the specific expenses listed in Section 675(4)." Maj. Op. at 82. But the majority never specifies what this review should look like. At times, the majority implies that a subset of New York foster parents have a § 1983 right to require New York simply "to quantify costs for set expenses." Id. at 83. At other moments, the majority suggests that federal courts must engage in a substantive review of a state's foster care payment scheme, id. at 82, but it notably demurs from informing lower courts what this "very limited review" entails. In sum, this vague analysis is a far cry from the careful "methodical inquiry" that the Supreme Court expects from lower courts when they discern § 1983 rights in federal legislation. See Blessing ,
Whatever the majority's good intentions, exposing New York's foster care system to amorphous § 1983 claims that are not contemplated in the CWA is no way to further the CWA's goals, nor to benefit foster care systems more generally. Indeed, the majority's decision raises the prospect that scarce foster care resources, instead of going to foster children, will be squandered in litigation destined to produce arbitrary and inconsistent results.
C
In its hurried desire to create a right enforceable under § 1983, the majority also misconstrues the controlling precedent provided by the Supreme Court's *982015 Armstrong decision. The majority observes that "[t]he only federal review provided under the [CWA] is review by the Secretary for substantial conformity ..., with the possibility of funding cutoffs as the sole remedy." Maj. Op. at 84. According to the majority, this limited remedy signifies that Congress did not intend to foreclose private enforcement of §§ 672(a)(1) and 675(4)(A). But Armstrong dictates the opposite conclusion: when Congress passes a statute that is "judicially unadministrable," and the "sole remedy" for a state's noncompliance is the Secretary's withholding of funds, Congress has manifested an intent for "the agency remedy that it provided [to be] exclusive." Armstrong ,
In Armstrong , private plaintiffs attempted to sue in equity to enforce § 30A of the Medicaid Act. See
Armstrong squarely controls our case. Not only does defining "the cost of" all the § 675(4)(A) items require myriad policy choices that have no legal answer, as in Armstrong ,
The majority attempts to distinguish Armstrong by noting that Armstrong concerned a suit in equity rather than a suit under § 1983. But it is harder for a private plaintiff to enforce a federal provision under § 1983 than it is for that plaintiff to enforce a federal provision by suing to enjoin allegedly unlawful actions, as the Armstrong plaintiffs sought to do. See Armstrong ,
D
Rather than acknowledging the controlling weight of the Court's Armstrong precedent, the majority invokes out-of-circuit case law, as well as two cases-each three decades old-in which the Supreme Court held that Spending Clause legislation provided a source of individually enforceable rights. See Wright ,
First, as explained above, the Court has stated on more than one occasion that "the ready implication of a § 1983 action that Wilder exemplified" has been "repudiate[d]" by more recent precedent. See Armstrong ,
Second, even ignoring their precarious status as precedent, Wright and Wilder involved statutory provisions that were notably different from those at issue here. The majority's approach to the CWA here echoes that of the Sixth and Ninth Circuits, which have both concluded that §§ 672(a)(1) and 675(4)(A) are judicially administrable under § 1983 because courts can assess the states' rate calculations for "reasonable[ness]." Maj. Op. at 82-83;
*100D.O. v. Glisson ,
Third, in both Wright and Wilder , the relevant statute and regulations provided detailed guidance to the states as to how they should calculate the rates in question.
Finally, as the Eighth Circuit has noted, "unlike the CWA sections at issue here, the relevant provisions in the Medicaid Act [at issue in Wilder ] did not focus on defining the conditions that must be met in order for a participating state's expenditures to be eligible for federal matching funds and, therefore, did not evince the degree of removal [from the provision's purported beneficiaries] we now confront." Midwest Foster Care ,
* * *
Statutes enacted under the Spending Clause create privately enforceable rights under § 1983 only if they do so "unambiguously." See Gonzaga ,
Since children remain in foster care until they are eighteen, it occasionally occurs that a foster child has children.
To support its position that the statutory text is permissive, the State relies in part on a piece of informal guidance from the Department of Health and Human Services, which refers to the expenses listed in § 675(4) as "allowable expenses." U.S. Dep't of Health & Human Servs., Child Welfare Policy Manual , http://perma.cc/2KYA-SHTT. The Child Welfare Policy Manual, however, is not a product of notice and comment rulemaking and is not entitled to Chevron deference. See United States v. Mead ,
For the reasons discussed in Part I, the Coalition is an appropriate representative of the plaintiff class of foster parents.
The dissent gloms on to one sentence of dicta in a footnote in Armstrong v. Exceptional Child Center , --- U.S. ----,
The dissent attempts to avoid Briggs by noting that it did not address Armstrong . Indeed, Briggs did not address Armstrong -but there is no reason to view this as an oversight rather than as an indication that the panel in Briggs did not consider Armstrong to govern the facts before it. We, likewise, do not consider Armstrong to be controlling on the facts now before us. See infra text at 84-85.
The State, relying on passing language in Gonzaga , seems to suggest that the presence of substantial conformity review, instead of individualized review, shows that the Act does not grant a right in the first place. In Gonzaga , the Court reflected on the fact that "Congress did not contemplate terminating funding on the basis of one violation of the privacy standards, but only where an institution had broader policies and practices that violated FERPA" to confirm its view that the statute, as a whole, was oriented only towards institutional policy. Cal. State ,
In any event, the State's suggestion proves too much. Under the State's reasoning, a plaintiff would be damned if the statute provides its own individual remedy, and damned if the statute does not. The only time Section 1983 would not be supplanted as a remedy would be when a statute provides for neither individual review, nor substantial compliance review. We decline to narrow the scope of the Section 1983 remedy so dramatically. We therefore limit the consideration of the agency review mechanism to the State's case for rebutting the presumption.
"Plaintiffs suing under [Section] 1983 do not have the burden of showing an intent to create a private remedy because [Section] 1983 generally supplies a remedy for the vindication of rights secured by federal statutes." Gonzaga , 536 U.S. at 284,
The State also argues that a Section 1983 action is not a proper remedy because the Act is Spending Clause legislation. It is true that the "typical remedy" for "state noncompliance" with Spending Clause legislation is federal action to terminate funds to the state, rather than private causes of action, Pennhurst ,
There is also no avenue for state court review The Act provides only for state agency proceedings for aggrieved individuals. Yet, confoundingly, the State argues that this state agency review is sufficient to foreclose resort to Section 1983. State review, standing alone, has never been deemed sufficient to supplant a Section 1983 action. See Blessing ,
In other words, the statute provides for partial federal reimbursement of state support payments for only a percentage of the foster children in a state's foster care system. This percentage of eligible children has declined over time, according to Defendant-Appellee New York, because "Congress has not raised financial eligibility standards since 1996." Br. Def-Appellee at 25.
Pursuant to this review mechanism, we reviewed (and upheld) HHS's determination in 2003 that New York was not in substantial conformity because of the number of children in foster care who had not received necessary judicial determinations that the state had made reasonable efforts to finalize so-called "permanency plans" on their behalf. New York ex rel. N.Y. State Office of Children & Family Servs. ,
By way of reminder, Section 675, the "Definitions" section of the CWA, defines foster care maintenance payments as:
payments to cover the cost of (and the cost of providing) food, clothing, shelter, daily supervision, school supplies, a child's personal incidentals, liability insurance with respect to a child, reasonable travel to the child's home for visitation, and reasonable travel for the child to remain in the school in which the child is enrolled at the time of placement. In the case of institutional care, such term shall include the reasonable costs of administration and operation of such institution as are necessarily required to provide the items described in the preceding sentence.
As highlighted below, my interpretation of the CWA, unlike the majority's, is consistent with that of HHS (which has not appeared in this litigation). To take one example, in 2008, Congress amended § 675(4)(A) to broaden the definition of "foster care maintenance payments" to include "payments to cover the cost of (and the cost of providing) ... reasonable travel for the child to remain in the school in which the child is enrolled at the time of placement." But HHS did not interpret this amendment as requiring states (as the majority would have it) to pay for such travel: "As with any cost enumerated in the definition of foster care maintenance payments in [§ 675(4) ]," it said, "the [state] agency may decide which of the costs to include in the child's foster care maintenance payment." U.S. Dep't of Health & Human Servs., Program Instruction No. ACYF-CB-PI-10-11 at 20, http://perma.cc/9LX9-C76D (emphasis added).
To be clear, my focus here is on the claim at issue. I do not, and need not, opine as to whether there are other circumstances that might give cause for HHS to withhold federal funds to participating states on the ground that inadequate monies were being directed to foster care. It is sufficient to resolve this case to conclude only that §§ 672(a) and 675(4)(a) do not constitute an exhaustive list of mandatory payments that "complying" states "shall make."
See supra note 1.
Additional informal guidance serves to buttress this interpretation. To provide another example, the agency also states, in offering guidance on the term "incidentals," as used in § 675(4)(A), that "the reasonable and occasional cost of such items as tickets or other admission fees for sporting, entertainment or cultural events," as well as the cost of "horseback riding" and "Boy/Girl Scout" dues, "are reimbursable under Title IV-E Foster Care as a part of the [foster care] maintenance payment." Admin. for Children & Families, U.S. Dep't of Health & Human Servs., Child Welfare Policy Manual §§ 8.3B.1(2), (9) (2018) (emphasis added). It is hard to imagine that Congress mandated that the states cover the cost of a foster child's participation in the Boy Scouts, although designating such a cost as reimbursable is entirely reasonable. See also U.S. Dep't of Health & Human Servs., Admin. on Children, Youth & Families, Program Instruction No. ACYF-CB-PI-10-11, at 20 (July 9, 2010), http://perma.cc/9LX9-c76D ("As with any cost enumerated in the definition of foster care maintenance payments in [§ 675(4) ], the title IV-E agency may decide which of the enumerated costs to include in a child's foster care maintenance payment.").
The Supreme Court's reticence in the § 1983 context is consistent with the entire swath of its implied rights jurisprudence. See, e.g. , Ziglar v. Abbasi , --- U.S. ----,
I agree with the majority that the Plaintiff-Appellant has standing to assert the rights of these caregivers.
Those three factors are: (1) whether "Congress ... intended that the provision in question benefit the plaintiff"; (2) whether "the right assertedly protected by the statute is ... so 'vague and amorphous' that its enforcement would strain judicial competence"; and (3) whether the statute "unambiguously impose[s] a binding obligation on the States"-i.e. , whether "the provision giving rise to the asserted right [is] couched in mandatory, rather than precatory, terms." Blessing ,
Children's Rights et al., Hitting the M.A.R.C.: Establishing Foster Care Minimum Adequate Rates for Children, Technical Report (2007), http://www.childrensrights.org/wpcontent/uploads/2008/06/hitting_the_marc_summary_october_2007.pdf.
For instance, as the State Amici note, "in the urban Northeast, food estimates for expenditures on children ages 12-14 in a two-parent family making more than $ 106,000 annually were $ 3,420," while "[e]stimates show that the same family composition making less than $ 61,680 spent only $ 2,340"-a difference of over $ 1,000. Br. of Amici Curiae States at 26-27.
The beneficiaries of the majority's scheme therefore may not be foster care parents or other caregivers, but the attorneys who bring claims on their behalf. See
Contrary to the majority's assertion, §§ 672(a)(1) and 675(4)(A) of the CWA are even more indeterminate than § 30(A) of the Medicaid Act because § 30(A)-unlike §§ 672(a)(1) and 675(4)(A) -at least provides some criteria for setting payment rates. See 42 U.S.C. § 1396a(30)(A) (specifying that payments be "consistent with efficiency, economy, and quality of care," while "safeguard[ing] against unnecessary utilization of ... care and services").
The majority argues that it must be easier to bring a claim under § 1983 than in equity because Congress passed § 1983 to create an additional means by which "plaintiffs [can] sue the government for civil rights violations." Maj. Op. at 85. But its comparison is inapt. Section 1983 provides different remedies against different defendants for civil rights violations, unavailable in equity. It is precisely because of the "variety of remedies-including damages-[available] from a broad range of parties" under § 1983 that a plaintiff "invoking § 1983" cannot "simply point[ ] to background equitable principles authorizing the action," but must instead "demonstrate specific congressional intent to create a statutory right." Armstrong ,
Although our Circuit determined in Briggs v. Bremby ,
Wilder involved the (since-repealed) Boren Amendment, 42 U.S.C. § 1396a(a)(13)(A), which required a state plan for medical assistance to provide payments "which the State finds, and makes assurances satisfactory to the Secretary, are reasonable and adequate ."
That said, the Court would probably now hold that the statute , rather than its implementing regulations, must provide an adequate benchmark; the existence of a right enforceable pursuant to § 1983 is a matter of Congressional rather than agency intent. Cf. Alexander ,
Reference
- Full Case Name
- NEW YORK STATE CITIZENS' COALITION FOR CHILDREN v. Sheila J. POOLE, Acting Commissioner for the New York State Office of Children and Family Services, in his official capacity
- Cited By
- 39 cases
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- Published