California by and through Becerra v. Azar
Opinion of the Court
*1073BACKGROUND
In 1970, Congress enacted Title X of the Public Health Service Act ("Title X") to create a limited grant program for certain types of pre-pregnancy family planning services. See Pub. L. No. 91-572,
None of the funds appropriated under this subchapter shall be used in programs where abortion is a method of family planning.
42 U.S.C. § 300a-6.
In 1988, the Department of Health and Human Services ("HHS") explained that it "interpreted [§] 1008 ... as prohibiting Title X projects from in any way promoting or encouraging abortion as a method of family planning," and "as requiring that the Title X program be 'separate and distinct' from any abortion activities of a grantee." 53 Fed. Reg. at 2923. Accordingly, HHS promulgated regulations forbidding Title X grantees from providing counseling or referrals for, or otherwise encouraging, promoting, or advocating abortion as a method of family planning. Id. at 2945. To prevent grantees from evading these restrictions, the regulations placed limitations on the list of medical providers that a program must offer patients as part of a required referral for prenatal care. See id. Such a list was required to exclude providers whose principal business is the provision of abortions, had to include providers who do not provide abortions, and could not weigh in favor of providers who perform abortions. Id. at 2945. The regulations also required grantees to keep their Title X funded projects "physically and financially separate" from all abortion-related services that the grantee might also provide (the "physical-separation" requirement). Id.
In 1991, the Supreme Court upheld the 1988 regulations against a challenge in *1074Rust v. Sullivan ,
Several years later (and under a new presidential administration), HHS suspended the 1988 regulations.
In 2019, HHS once again revised its Title X regulations, promulgating regulatory language (the "Final Rule") that substantially reverts back to the 1988 regulations.
The Final Rule was scheduled to take effect on May 3, 2019, although grantees would have until March 4, 2020, to comply with the physical-separation requirement.
HHS appealed all three preliminary injunction orders to this court, and filed motions to stay the injunctions pending a decision on the merits of its appeals. Because the three motions for a stay pending appeal present nearly identical issues, we consider all three motions jointly.
ANALYSIS
In ruling on a stay motion, we are guided by four factors: "(1) whether the stay applicant has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) where the public interest lies." Nken v. Holder ,
I.
We conclude that the Government is likely to prevail on its challenge to the district courts' preliminary injunctions based on their findings that the Final Rule is likely invalid as both contrary to law and arbitrary and capricious under
As a threshold matter, we note that the Final Rule is a reasonable interpretation of § 1008. Congress enacted § 1008 to ensure that "[n]one of the funds appropriated under this subchapter shall be used in programs where abortion is a method of family planning." 42 U.S.C. § 300a-6. If a program promotes, encourages, or advocates abortion as a method of family planning, or if the program refers patients to abortion providers for family planning purposes, then that program is logically one "where abortion is a method of family planning." Accordingly, the Final Rule's prohibitions on advocating, encouraging, or promoting abortion, as well as on referring patients for abortions, are reasonable and in accord with § 1008. Indeed, the Supreme Court has held that § 1008 "plainly allows" such a construction of the statute. Rust ,
II.
Because Rust largely forecloses any attempt to argue that the Final Rule is not a reasonable interpretation of the text of § 1008, the district courts instead relied on two purportedly intervening laws that they say likely render the Final Rule "not in accordance with law."
For carrying out the program under [T]itle X of the PHS Act to provide for voluntary family planning projects, $ 286,479,000: Provided, [t]hat amounts provided to said projects under such title shall not be expended for abortions, *1076that all pregnancy counseling shall be nondirective , and that such amounts shall not be expended for any activity (including the publication or distribution of literature) that in any way tends to promote public support or opposition to any legislative proposal or candidate for public office.
132 Stat 2981, 3070-71 (2018) (emphasis added). The second is an ancillary provision of the Affordable Care Act (ACA), located within a subchapter of the law entitled "Miscellaneous Provisions," which reads:
Notwithstanding any other provision of this Act, the Secretary of Health and Human Services shall not promulgate any regulation that-
(1) creates any unreasonable barriers to the ability of individuals to obtain appropriate medical care;
(2) impedes timely access to health care services;
(3) interferes with communications regarding a full range of treatment options between the patient and the provider;
(4) restricts the ability of health care providers to provide full disclosure of all relevant information to patients making health care decisions;
(5) violates the principles of informed consent and the ethical standards of health care professionals; or
(6) limits the availability of health care treatment for the full duration of a patient's medical needs.
Pub. L. No. 111-148, title I, § 1554 (
These two provisions could render the Final Rule "not in accordance with law" only by impliedly repealing or amending § 1008, or by directly contravening the Final Rule's regulatory provisions.
First, we conclude that neither law impliedly repealed or amended § 1008. See Nat'l Ass'n of Home Builders v. Defs. of Wildlife ,
Plaintiffs admit that there is no irreconcilable conflict between § 1008 and either the appropriations rider or § 1554 of the ACA. E.g. , California State Opposition to Motion for Stay at p. 14; Essential Access Opposition to Motion for Stay at p. 14. And we discern no "clear and manifest" intent by Congress to amend or repeal § 1008 via either of these laws-indeed, neither law even refers to § 1008. The appropriations rider mentions abortion only to prohibit appropriated funds from being expended for abortions; and § 1554 of the ACA does not even mention abortion.
As neither statute impliedly amended or repealed § 1008, the question is therefore whether the Final Rule is nonetheless "not in accordance with law" because its provisions are incompatible with the appropriations rider or § 1554 of the ACA.
The appropriations rider conditions HHS funding on a requirement that no Title X funds be expended on abortion, and that "all pregnancy counseling shall be nondirective." Pub. L. No. 115-245, div. B, tit. II, 132 Stat 2981, 3070-71 (2018). (The plain text of the rider actually seems to reinforce § 1008's restrictions on funding abortion-related activities.)
The district courts held that the Final Rule's counseling and referral requirements directly conflicted with the appropriations rider's "nondirective" mandate. But its mandate is not that nondirective counseling be given in every case. It is that such counseling as is given shall be nondirective. The Final Rule similarly does not require that any pregnancy counseling be given, only that if given, such counseling shall be nondirective (and may include neutrally-presented information about abortion).
Although the Final Rule does require the provision of referrals to non-abortion providers,
But even if referrals are included under the rubric of "pregnancy counseling," it is not clear that referring a patient to a non-abortion doctor is necessarily "directive." Nondirective counseling does not require equal treatment of all pregnancy options-rather, it just requires that a provider not affirmatively endorse one option over another. 84 Fed. Reg. at 7716. When Congress wants specific pregnancy options to be given equal treatment, it knows how to say so explicitly . For example, Congress has mandated that "adoption information and referrals" shall be provided "on an equal basis with all other courses of action included in nondirective counseling." 42 U.S.C. § 254c-6(a)(1) (emphasis added). If "nondirective" already meant that all pregnancy options (including adoption) shall be given equal treatment, it would render meaningless Congress's explicit instruction that adoption be treated on an equal basis with other pregnancy options. "[C]ourts avoid a reading that renders *1078some words altogether redundant." Scalia, Antonin, and Garner, Bryan A., Reading Law: The Interpretation of Legal Texts (2012) 176. Congress has enacted no such statutory provision explicitly requiring the equal treatment of abortion in pregnancy counseling and referrals.
We next consider § 1554 of the ACA. As a threshold matter, it seems likely that any challenge to the Final Rule relying on § 1554 is waived because Plaintiffs concede that HHS was not put on notice of this specific challenge during the public comment period, such that HHS did not have an "opportunity to consider the issue." Portland Gen. Elec. Co. v. Bonneville Power Admin. ,
But even if this challenge were preserved, it seems likely that § 1554 does not affect § 1008's prohibition on funding programs where abortion is a method of family planning. Section 1554 prohibits "creat[ing] any unreasonable barriers to the ability of individuals to obtain appropriate medical care," "imped[ing] timely access to health care services," "interfer[ing] with communications regarding a full range of treatment options between the patient and the provider," "restrict[ing] the ability of health care providers to provide full disclosure of all relevant information to patients making health care decisions," "violat[ing] the principles of informed consent and the ethical standards of health care professionals," and "limit[ing] the availability of health care treatment for the full duration of a patient's medical needs."
III.
The district courts also held that the Final Rule likely violates the Administrative Procedure Act (APA)'s prohibition on "arbitrary and capricious" regulations.
To find that the Final Rule's enactment was arbitrary and capricious, the district courts generally ignored HHS's explanations, reasoning, and predictions whenever they disagreed with the policy conclusions that flowed therefrom.
For example, with respect to the physical separation requirement, the district courts ignored HHS's reasoning for its re-imposition of that requirement (which was approved by Rust ): that physical separation would ensure that Title X funds are not used to subsidize abortions via co-location of Title X programs in abortion clinics. See 84 Fed. Reg. at 7763-68. HHS's reasoning included citation to data suggesting "that abortions are increasingly performed at sites that focus primarily on contraceptive and family planning services-sites that could be recipients of Title X funds." Id. at 7765. Similarly, the district courts ignored HHS's primary reasoning for prohibiting abortion counseling and referrals: that such restrictions are required by HHS's reasonable reading of § 1008 (again, approved by Rust ). Id. at 7746-47. Further, the district courts ignored HHS's consideration of the effects that the Final Rule would likely have on the number of Title X providers, and credited Plaintiffs' speculation that the Final Rule would "decimate" the Title X provider network, rather than HHS's prediction-based on evidence cited in the administrative record-"that honoring statutory protections of conscience in Title X may increase the number of providers in the program," by attracting new providers who were previously deterred from participating in the program *1080by the former requirement to provide abortion referrals. See id. at 7780. Such predictive judgments "are entitled to particularly deferential review." Trout Unlimited v. Lohn ,
In light of the narrow permissible scope of the district court's review of HHS's reasoning under the arbitrary and capricious standard, we conclude that HHS is likely to prevail on its argument that the district court erred in concluding that the Final Rule's enactment violated the APA.
IV.
The remaining factors also favor a stay pending appeal. HHS and the public at large are likely to suffer irreparable harm in the absence of a stay, which are comparatively greater than the harms Plaintiffs are likely to suffer.
Absent a stay, HHS will be forced to allow taxpayer dollars to be spent in a manner that it has concluded violates the law, as well as the Government's important policy interest (recognized by Congress in § 1008) in ensuring that taxpayer dollars do not go to fund or subsidize abortions. As the Supreme Court held in Rust , "the government may make a value judgment favoring childbirth over abortion, and ... implement that judgment by the allocation of public funds," and by "declining to 'promote or encourage abortion.' " Rust ,
The harms that Plaintiffs would likely suffer if a stay is granted are comparatively minor. The main potential harms that Plaintiffs identify are based on their prediction that implementation of the Final Rule will cause an immediate and steep decline in the number of Title X providers. But these potential harms obviously rely on crediting Plaintiffs' predictions about the effect of implementing the Final Rule, over HHS's predictions that implementation of the final rule will have the opposite effect. As described above, we think that HHS's predictions-supported by reasoning and evidence in the record ( 84 Fed. Reg. at 7780 )-is entitled to more deference than Plaintiffs' contrary predictions. While some Title X grantees will certainly incur financial costs associated with complying with the Final Rule if the preliminary injunctions are stayed, we think that harm is minor relative to the harms to the Government described above.
V.
Because HHS and the public interest would be irreparably harmed absent a *1081stay, harms to Plaintiffs from a stay will be comparatively minor, and HHS is likely to prevail in its challenge of the preliminary injunction orders before a merits panel of this court (which is set to hear the cases on an expedited basis), we conclude that a stay of the district courts' preliminary injunction orders pending appeal is proper.
The motion for a stay pending appeal is GRANTED .
Under the 2000 regulations, "nondirective" counseling meant the provision of "factual, neutral information about any option, including abortion, as [medical providers] consider warranted by the circumstances, ... [without] steer[ing] or direct[ing] clients toward selecting any option."
But to the extent there is any ambiguity, "when reviewing an agency's statutory interpretation under the APA's 'not in accordance with law' standard, ... [we] adhere to the familiar two-step test of Chevron ." Nw. Envtl. Advocates v. U.S. E.P.A. ,
But as discussed above, to the extent there is any ambiguity as to whether the appropriation rider's nondirective mandate means that Title X grantees must be allowed to provide referrals to abortion providers on an equal basis with non-abortion providers, we would defer to HHS's reasonable interpretation under Chevron that referral to non-abortion providers is consistent with the provision of nondirective pregnancy counseling.
The preamble to § 1554 also suggests that this section was not intended to restrict HHS interpretations of provisions outside the ACA. If Congress intended § 1554 to have sweeping effects on all HHS regulations, even those unrelated to the ACA, it would have stated that § 1554 applies "notwithstanding any other provision of law ," rather than "[n]otwithstanding any other provision of this Act ." See, e.g. , Andreiu v. Ashcroft ,
The district court in Washington also briefly stated that the Final Rule was likely invalid because it "violates the central purpose of Title X, which is to equalize access to comprehensive, evidence-based, and voluntary family planning." Washington Preliminary Injunction Order at 15. But this conclusion is foreclosed by the existence of § 1008, and by the Supreme Court's contrary finding in Rust .
Reference
- Full Case Name
- State of CALIFORNIA, BY AND THROUGH Attorney General Xavier BECERRA v. Alex M. AZAR II, in his Official Capacity as Secretary of the U.S. Department of Health & Human Services U.S. Department of Health & Human Services, Essential Access Health, Inc. Melissa Marshall, M.D. v. Alex M. Azar II, Secretary of U.S. Department of Health and Human Services United States Department of Health and Human Services, State of Oregon State of New York State of Colorado State of Connecticut State of Delaware District of Columbia State of Hawaii State of Illinois State of Maryland Commonwealth of Massachusetts State of Michigan State of Minnesota State of Nevada State of New Jersey State of New Mexico State of North Carolina Commonwealth of Pennsylvania State of Rhode Island State of Vermont Commonwealth of Virginia State of Wisconsin American Medical Association Oregon Medical Association Planned Parenthood Federation of America, Inc. Planned Parenthood of Southwestern Oregon Planned Parenthood Columbia Willamette Thomas N. Ewing, M.D. Michele P. Megregian, C.N.M. v. Alex M. Azar II United States Department of Health and Human Services Diane Foley Office of Population Affairs, State of Washington National Family Planning and Reproductive Health Association Feminist Women's Health Center Deborah Oyer, M.D. Teresa Gall v. Alex M. Azar II, in his official capacity as Secretary of the United States Department of Health and Human Services United States Department of Health and Human Services Diane Foley, MD, in her official capacity as Deputy Assistant Secretary for Population Affairs Office of Population Affairs
- Cited By
- 5 cases
- Status
- Published