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389 F. Supp. 3d 898
D. Or.
2019
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Background

  • Plaintiffs (20 states, D.C., AMA, Oregon Medical Assn., Planned Parenthood, affiliates, and providers) challenge HHS Final Rule (Mar. 4, 2019; effective May 3, 2019) revising Title X family planning regulations.
  • Two central provisions challenged: the “Gag Rule” (prohibits performing, promoting, referring for, or supporting abortion as a method of family planning; restricts abortion-related counseling/referrals) and the “Separation Requirement” (requires physical and financial separation between Title X activities and prohibited activities).
  • Title X historically funds low-income family planning services (contraception, STI screening, cancer screening, nondirective pregnancy counseling); current (2000) regulations allow nondirective counseling and abortion referrals upon request.
  • Congress since 1996 has required that "all pregnancy counseling shall be nondirective," and the ACA (2010) bars HHS from promulgating regulations that create unreasonable barriers, impede timely access, interfere with communications about treatment options, restrict full disclosure, violate informed consent, or limit availability of care.
  • Plaintiffs presented declarations from public‑health experts, medical organizations (AMA), and providers showing likely severe public‑health harms (reduced contraceptive services, more unintended pregnancies, less screening) and that many providers (notably Planned Parenthood) would leave Title X if the Final Rule were implemented.
  • Court found plaintiffs likely to succeed on APA claims (Final Rule contrary to law and arbitrary and capricious), that irreparable harm is likely, and that equities/public interest favor injunction; granted nationwide preliminary injunction preserving status quo under current Title X regs.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Final Rule's Gag Rule (ban on abortion referrals and restrictive counseling) violates Congress's mandate that all pregnancy counseling be nondirective Gag Rule makes abortion counseling directive, forbids requested referrals or truthful identification of abortion providers, conflicting with the nondirective mandate Rust precedent upheld similar rules historically; Section 1008 permits restrictions to prevent Title X funds used where abortion is a method of family planning Court: Plaintiffs likely to prevail; Gag Rule conflicts with Congress's nondirective counseling mandate and is not "in accordance with law" under APA
Whether Separation Requirement (physical and financial separation) exceeds agency authority or violates ACA limits on rulemaking Separation imposes burdens that create barriers to care, impede access, and risk providers exiting Title X; conflicts with ACA §18114 limits HHS relies on Section 1008 and Rust; argues ACA limits do not repeal Section 1008 and limitations don’t apply to Title X Court: Serious questions/likely success that ACA limits apply and separation creates unreasonable barriers; arbitrary and capricious concerns warrant injunction
Whether HHS rulemaking was arbitrary and capricious under APA HHS failed to consider evidence (medical ethics, public‑health impacts, provider withdrawals), offered conclusory/rebuttal-free rationales, and ignored likely harms (e.g., Planned Parenthood exit) HHS asserts rule preserves program integrity and relies on past precedent (Rust) and agency judgment Court: Agency failed to meaningfully respond to evidence (ethical and public‑health); record shows arbitrary and capricious features; plaintiffs showed likelihood of success
Whether preliminary injunction factors (irreparable harm, balance of equities, public interest) favor plaintiffs Implementation imminently threatens irreparable public‑health and economic harms (lost services, increased unintended pregnancies and STIs); status quo poses no comparable harm Government contends Rust supports rule and urged deference; sought stay pending other courts' rulings Court: Irreparable harm likely, equities and public interest favor injunction; nationwide injunction appropriate to preserve status quo

Key Cases Cited

  • Rust v. Sullivan, 500 U.S. 173 (1991) (upholding agency interpretation of Section 1008 as a permissible construction where statute ambiguous)
  • Winter v. Natural Resources Defense Council, 555 U.S. 7 (2008) (four-part preliminary injunction standard)
  • Chevron U.S.A. Inc. v. Natural Resources Defense Council, 467 U.S. 837 (1984) (agency deference framework for ambiguous statutes)
  • Motor Vehicle Mfrs. Ass'n v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29 (1983) (arbitrary and capricious review requires reasoned explanation and addressing significant evidence)
  • California v. Azar, 911 F.3d 558 (9th Cir. 2018) (injury from reduced access to contraceptive coverage can be irreparable; standards for nationwide relief)
  • All. for the Wild Rockies v. Pena, 865 F.3d 1211 (9th Cir. 2017) (serious questions doctrine for preliminary injunctions when balance of hardships tips sharply)
  • Citizens to Preserve Overton Park v. Volpe, 401 U.S. 402 (1971) (scope of judicial review under APA)
  • Bowen v. Georgetown Univ. Hosp., 488 U.S. 204 (1988) (agency power limited to authority delegated by Congress)
  • Robertson v. Seattle Audubon Soc'y, 503 U.S. 429 (1992) (congressional amendments via appropriations require clear statement)
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Case Details

Case Name: State v. Azar
Court Name: District Court, D. Oregon
Date Published: Apr 29, 2019
Citations: 389 F. Supp. 3d 898; 6:19-cv-00317-MC (Lead Case); 6:19-cv-00318-MC (Trailing Case)
Docket Number: 6:19-cv-00317-MC (Lead Case); 6:19-cv-00318-MC (Trailing Case)
Court Abbreviation: D. Or.
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    State v. Azar, 389 F. Supp. 3d 898