Lead Opinion
Opinion for the Court filed by Circuit Judge GARLAND.
Dissenting opinion filed by Circuit Judge SENTELLE.
The Washington Metropolitan Area Transit Authority (WMATA) contends that sovereign immunity protects it from being sued in federal court under § 504 of the Rehabilitation Act, 29 U.S.C. § 794, for discriminating on the basis of disability. It insists that it did not waive that immunity by accepting federal financial assistance, and further maintains that Congress lacks power under the Spending Clause to condition the receipt of federal funds on such a waiver. We disagree and hold that WMA-TA has waived its immunity to Rehabilitation Act suits by taking federal transportation funds.
I
WMATA fired Adam Barbour from his position as a probationary electrician on April 1, 1998. Barbour charges that WMATA fired him because he suffers from a mental disability, bipolar disorder. WMATA denies the charge, maintaining that it terminated Barbour for insubordinate, threatening, and anti-social behavior.
On February 24, 2000, Barbour sued WMATA in the United States District Court for the District of Columbia under federal and local causes of action, alleging that the Authority discriminated against him because of his disability. Only one cause of action survived WMATA’s motions for dismissal and summary judgment: Barbour’s claim that his discharge violated § 504 of the Rehabilitation Act. In permitting that claim to go forward, the district court rejected WMATA’s contention that the Eleventh Amendment renders WMATA immune from a Rehabilitation Act suit for money damages in federal court.
WMATA now appeals the district court’s denial of immunity, a kind of interlocutory
II
WMATA, a mass transit system for the District of Columbia and surrounding suburban areas, was created by an interstate compact among Maryland, Virginia, and the District of Columbia, and enjoys the Eleventh Amendment immunity of the two signatory states. Morris v. WMATA,
There are two important exceptions to Eleventh Amendment immunity. First, a state may waive its immunity and consent to suit. Second, Congress may exercise its enforcement power under § 5 of the Fourteenth Amendment to abrogate a state’s immunity without its consent. See College Savings Bank v. Florida Prepaid Postsecondary Educ. Expense Bd.,
The “ 'test for determining whether a State has waived its immunity from federal-court jurisdiction is a stringent one.’ ” College Savings,
WMATA denies that it consented to waive its Eleventh Amendment immunity from suit under the Rehabilitation Act. First, it contends that Congress did not clearly condition acceptance of federal
A
Section 504 of the Rehabilitation Act of 1973 provides:
No otherwise qualified individual with a disability in the United States ... shall, solely by reason of her or his disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance ....
29 U.S.C. § 794(a). The Act provides remedies for violations of § 504 by “any recipient of Federal assistance.” Id. § 794a(2). In Atascadero State Hospital v. Scanlon, the Supreme Court found that the Rehabilitation Act’s “general authorization for suit in federal court is not the kind of unequivocal statutory language sufficient to abrogate the Eleventh Amendment,”
In 1986, in response to Atascadero, Congress passed the Civil Rights Remedies Equalization Act (CRREA), which provides in relevant part:
A state shall not be immune under the Eleventh Amendment of the Constitution of the United States from suit in Federal court for a violation of section 504 of the Rehabilitation Act of 1973, title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, title VI of the Civil Rights Act of 1964, or the provisions of any other Federal statute prohibiting discrimination by recipients of Federal financial assistance.
42 U.S.C. § 2000d-7(a)(1); .see Lane v. Pena,
Notwithstanding the views of the circuits and of the Supreme Court, WMA-TA maintains that the CRREA does not make clear that receipt of funds is conditioned on a waiver of immunity. We dis
WMATA insists that the CRREA is ambiguous because its opening clause — “A state shall not be immune under the Eleventh Amendment of the Constitution of the United States from suit in Federal court” — parallels language that Congress has frequently used in attempting to abrogate state immunity. The Supreme Court has indeed construed similar statutory language as the language of abrogation. See, e.g., Garrett,
Whatever the validity of WMATA’s claim that the language of the CRREA’s opening clause cannot do double duty, that claim simply ignores the statute’s closing words, which, like those of the Rehabilitation Act, single out recipients of “Federal financial assistance” as the only entities within the statute’s purview. By contrast, none of the abrogation statutes WMATA cites contains anything more than the naked “shall not be immune” language. This is a distinction of considerable difference.
College Savings Bank v. Florida Prepaid makes clear why this distinction matters. In that case, the question was whether Congress could condition a state’s sale of a tuition prepayment plan on relinquishment of its immunity to Lanham Act suits for false advertising. The Court held that such a condition amounted to a “forced,” rather than a voluntary waiver because the state could not avoid liability except by abstaining from interstate commerce.
With this distinction, the Supreme Court reaffirmed its prior holdings “that Congress may, in the exercise of its spending power, condition its grant of funds to the States upon their taking certain actions that Congress could not require them to take, and that acceptance of the funds entails an agreement to the actions.” Id. at 686,
B
WMATA’s second argument is that, even if the CRREA did unambiguously condition receipt of funds on a waiver of immunity, the Authority nonetheless did not knowingly consent to such a waiver by taking federal funds in 1998, the year in which it terminated Barbour. In that year, WMATA contends, “it reasonably believed that Congress had already abrogated its immunity” from suits for disability discrimination by virtue of Title I of the Americans with Disabilities Act of 1990 (ADA), 42 U.S.C. § 12112(a). Reply Br. at 7.
A similar argument prevailed in Garcia v. S.U.N.Y. Health Sciences Center,
First, College Savings and Atascadero establish a single criterion for determining the validity of a waiver: Congress must clearly condition acceptance of federal funds on the state’s waiver of its sovereign
Although Garcia conceded that the CRREA “constitutes a clear expression of Congress’ intent to condition acceptance of funds on a state’s waiver of its Eleventh Amendment immunity,”
Second, even Garcia recognized that an argument like WMATA’s, that a state instrumentality had miscalculated what its immunity was worth, would lose force as the Supreme Court’s Eleventh Amendment jurisprudence evolved. Although Garcia saw no reason for New York to suspect that the ADA’s abrogation was invalid in 1995, it acknowledged that a state’s acceptance of funds at a later date — after the Supreme Court issued two decisions that formed the predicate for Garrett — “might properly reveal a knowing relinquishment of sovereign immunity.”
Finally, even if WMATA’s state of mind were a relevant consideration, the underlying implication of its argument — that it was only WMATA’s miscalculation about whether its immunity had already been abrogated by the ADA that led it to accept federal funds in 1998 — would fail on the facts. The CRREA, after all, was passed in 1986 — four years before the ADA, and hence four years before WMATA could claim that it thought it lost its protection against disability discrimination lawsuits. Nonetheless, WMATA took federal trans
Ill
As a last argument, WMATA contends that Congress lacks power under the Spending Clause, U.S. Const. Art. I, § 8, cl. 1, to condition WMATA’s federal transportation funds on a waiver of immunity from suit under the Rehabilitation Act. Specifically, WMATA argues that the CRREA’s waiver condition runs afoul of the Supreme Court’s decision in South Dakota v. Dole, because it is “unrelated to the federal interest” in transportation funds.
In the CRREA, the legislature made clear that it did not want any federal funds to be used to facilitate disability discrimination, and that exposing recipient entities to the threat of federal damage actions was an effective deterrent. Congress’s spending condition guarantees that federal money is used for the provision of transportation, and nothing else. Every circuit that has considered the issue has concluded that the connection between the congressional goal (that federal transportation funds be used exclusively for that purpose), and the congressional means (the spending condition), is close enough to be sustained under the spending power. See Nieves-Marquez v. Puerto Rico,
We do not break any new ground in reaching the same conclusion. As the United States points out, the Rehabilitation Act’s nondiscrimination requirement is patterned alter Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d, and Title IX of the Education Amendments of 1972, 20 U.S.C. § 1681(a), which prohibit, respectively, race and sex discrimination in programs or activities that receive federal funds. See NCAA v. Smith,
WMATA’s only response is to note, correctly, that Lau and Grove City predate Dole. But Dole itself cited Lau as a case in which Congress had lawfully used the spending power “ ‘to further broad policy objectives by conditioning receipt of federal moneys upon compliance by the recipient with federal statutory and administrative directives.’ ” Dole,
In its most recent Spending Clause case, the Court confirmed the constitutionality of 18 U.S.C. § 666(a)(2), which makes bribery of officials of state entities that receive in excess of $10,000 in federal funds a federal crime, and which does not require a connection between a given bribe and a particular federal grant. See Sabri v. United States, — U.S. -, 124 S.Ct.
Finally, we note an analytic difference that may be at the root of our disagreement with our dissenting colleague. In his view, “conditional funding grants are no less regulatory than any form of federal regulation of the states.” Dissenting Op. at 2. On this point, however, College Savings teaches otherwise, and it is worth repeating that opinion’s key passage here:
As we have held in such cases as South Dakota v. Dole,483 U.S. 203 ,107 S.Ct. 2793 ,97 L.Ed.2d 171 (1987), Congress may, in the exercise of its spending power, condition its grant of funds to the States upon their taking certain actions that Congress could not require them to take- These cases seem to us funda-
mentally different from the present one [about regulation under the Lanham Act].... Congress has no obligation to use its Spending Clause power to disburse funds to the States; such funds are gifts.
IV
We hold that WMATA waived its immunity from suit under the Rehabilitation Act by accepting federal transportation funds, and that Congress had authority under the Spending Clause to condition the receipt of federal funds on such a waiver. The judgment of the district court is therefore
Affirmed.
Notes
. See Nieves-Marquez v. Puerto Rico,
. In the cited cases, the Court ruled that abrogation was beyond Congress' authority.
. Although College Savings noted that "the financial inducement offered by Congress might be so coercive as to pass the point at which 'pressure turns into compulsion,' "
. Title I bars a covered entity from discriminating "against a qualified individual with a disability because of the disability of such individual in regard to ... terms, conditions, and privileges of employment.” 42 U.S.C. § 12112(a).
.A panel of the Fifth Circuit agreed with Garcia, but the full court vacated that decision pending reconsideration en banc. See Pace,
. In addition to contending that it believed the ADA had left it with nothing to lose by taking federal funds, WMATA argues that it thought the "abrogation language” of the CRREA similarly left it with liability under the Rehabilitation Act whatever it did. This argument is meritless, and no court has accepted it. As we have noted above, both the CRREA and the Rehabilitation Act apply only to discrimination by recipients of "Federal financial assistance.” 42 U.S.C. § 2000d-7(a)(1); 29 U.S.C. § 794(a). Hence, whether WMATA read the CRREA’s text as the language of "abrogation” or of "waiver,” it had to know that it could wholly avoid liability under the Rehabilitation Act by declining federal funds.
. Dole listed a number of other limits on Congress' Spending Clause authority. WMA-TA does not contend that any of those apply here, except insofar as Dole’s requirement that funding conditions be "unambiguous,”
. The Court did subsequently reject Lau’s interpretation of Title VI as extending beyond intentional discrimination. See Alexander v. Sandoval,
. The dissent's contention that Sabri is distinguishable because ''[r]ampant bribery of WMATA officials ... would make it more difficult for federal funds to do the job of providing mass transit,” while disability discrimination "would not,” Dissenting Op. at 1174, overlooks the Court's recognition that § 666 does not require "any connection between a bribe or kickback and some federal money.”
Dissenting Opinion
dissenting:
The majority holds that the Washington Metropolitan Area Transit Authority (“WMATA”), an entity created pursuant to an interstate compact among Maryland, Virginia, and the District of Columbia that possesses Eleventh Amendment immunity, see Morris v. WMATA,
I would hold that conditioning acceptance of federal transportation funds on a state’s acquiescence to private damages suits for disability discrimination in employment is not a valid exercise of Congress’s power under the Spending Clause under the rule of New York v. United States,
I would reverse the judgment of the district court for the reason that Congress lacks the power to subject states, or entities like WMATA treated as states for purposes of immunity, to suits for money damages for disability discrimination in the manner it has done here.
A. Spending Clause
With all respect, I disagree with the majority that Congress has the power under the Spending Clause to expose the states to liability for the sort of suit Barbour brought against WMATA. “Congress may attach conditions on the receipt of federal funds,” but “[s]uch conditions must (among other requirements) bear some relationship to the purpose of the federal spending.” New York v. United States,
The Dole principle is fundamental to our constitutional structure. Without it, “the spending power could render academic the Constitution’s other grants and limits of federal authority.” New York,
the makers of the Constitution, in erecting the federal government, intended sedulously to limit and define its powers, so as to reserve to the states and the people sovereign power, to be wielded by the states and their citizens and not to be invaded by the United States, they nevertheless by a single clause gave power to the Congress to tear down the barriers, to invade the states’ jurisdiction, and to become a parliament of the whole people, subject to no restrictions save such as are self-imposed.
United States v. Butler,
True, a state can simply decline to accept a conditional funding grant, but such
There is no reasonably close relationship between the grant of funds here and the imposed condition. The purpose of the federal funds WMATA receives is to subsidize the mass-transit services WMATA provides. They are transportation funds. As applied in this case, the condition is subjecting WMATA to a private suit for money damages for discriminating against its employees on the basis of disability. Prohibiting disability discrimination in employment is simply not “Necessary and Proper,” U.S. Const. art. I, § 8, cl. 18, to spending money for mass transit. The effect of such a prohibition is to create an entitlement for the disabled, perhaps a laudable goal, but not one necessary or proper to providing mass transit.
Barbour’s brief offers no answer to this argument. The government and the majority make an attempt to fill this gaping void in Barbour’s case. However, I am not convinced that the connection they assert between the funds and the condition here is constitutionally adequate.
Following the government and several other circuits, the majority asserts that Congress’s judgment that “it did not want any federal funds to be used to facilitate disability discrimination” in employment is enough of a connection between the condition here and the mass-transit funds. Maj. op. at 1168. This cannot be right. The majority and the government are saying that the legislature can identify something a state does that it does not like - in this case, discriminate on the basis of disability - and condition any grant of funds on a state’s not doing that act any more, assuming the condition is otherwise constitutionally valid. Presumably, Congress has an “interest” in preventing states from doing anything with its funds that it does not like, and there is nothing magical about disability discrimination that makes
The reasoning of the circuits the majority cites is no better. The First Circuit’s reasoning consists of a single sentence, to wit, that the condition “is manifestly related to Congress’s interest in deterring federally supported agencies from engaging in disability discrimination.” Nieves-Marquez v. Puerto Rico,
Nor do I think that the majority’s holding follows from the three Supreme Court cases it cites. The majority relies heavily on Lau v. Nichols,
Quoting dicta from Lau, the majority states that “[s]imple justice requires that public funds, to which taxpayers of all races contribute, not be spent in any fashion which encourages, entrenches, subsidizes, or results in racial discrimination.” Maj. op. at 1170 (internal quotation marks and citation omitted). ' The principle the majority quotes from Lau, which was itself a quotation from a floor speech given by Senator Hubert Humphrey during the debates on the Civil Rights Act of 1964, is obvious dicta, and singularly unpersuasive dicta at that. A policy argument made in a floor statement by a Senator cannot be the basis of a legal doctrine meant to restrain the very exercise of policy-making power such an argument represents. Racial discrimination, in fact, was not at issue in Lau at all; it was a challenge to a regulation that prohibited national-origin discrimination. Neither Lau nor the Supreme Court’s description of Lau in New York v. United States,
Equally distinguishable is the Supreme Court’s recent decision in Sabri v. United States, — U.S. -,
This unexceptional recognition of the link between any federal appropriation and the federal government’s interest in ensuring that such an appropriation is not “frittered away in graft,” id. at 1946, falls far short of establishing the same sort of link between “discrimination” generally and any federal appropriation. As with graft, of course, the federal government may not like discrimination; but preventing graft ensures that funds are spent for the particular purposes for which Congress appropriated them, as opposed to any congressional purpose or “interest” whatsoever. Rampant bribery of WMA-TA officials, for example, would make it more difficult for federal funds to do the job of providing mass transit.
For all of these reasons, I conclude that Congress lacks the power under the Spending Clause to subject WMATA to suits for money damages for disability discrimination in employment.
B. Section 5 of the Fourteenth Amendment
My conclusion as to Congress’s power under the Spending Clause requires me, unlike the majority, to reach whether Congress has the power to do the same pursuant to its enforcement power under section 5 of the Fourteenth Amendment. I would hold that it does not.
Section 5 of the Fourteenth Amendment provides that “[t]he Congress shall have the power to enforce, by appropriate legislation, the provisions of this article.” Although the power to “enforce” seems by its terms to be limited to legislation to remedy actual Fourteenth Amendment violations, see Tennessee v. Lane, — U.S. -,
Here, as was the case in Garrett, the constitutional right Congress is attempting to enforce is Barbour’s Fourteenth Amendment right to be free from irrational discrimination in employment on the basis of his disability. See City of Cleburne v. Cleburne Living Ctr.,
While I confess not to have engaged in a comprehensive independent review of the history of Rehabilitation Act section 504 and § 2000d-7(a)(1), the evidence that Barbour cites at least seems to fall woefully short of demonstrating anything approaching a widespread pattern of unconstitutional discrimination against the disabled by the states in general or WMATA in particular. (The government’s brief does not address the section 5 issue, only the Spending Clause issue.) Barbour cites evidence before Congress that he claims demonstrates that “States were not serving the most severely disabled” as of 1973, the year the Rehabilitation Act was passed. Br. for Appellee at 26. That falls far short of establishing the pattern Cleburne requires.
Moreover, the remedies created by the Rehabilitation Act against the states “raise the same sort of concerns as to congruence and proportionality as were found in City of Boerne.” Garrett,
I realize that the Supreme Court recently upheld Title II of the Americans with Disabilities Act as a valid exercise of Congress’s section 5 enforcement power in Tennessee v. Lane, — U.S. -,
. My point is that the two sorts of powers are equally regulatory, and therefore that the Lopez principle applies to Spending Clause conditions with full force, not that there are no functional differences between the two. College Savings Bank recognizes that Spending Clause conditions differ from direct regulations under Congress's other Article I powers in that the latter are coercive.
In any event, my disagreement with the majority in no way turns on this dispute over this aspect of Congress’s Spending Clause power. The majority assumes that there are limits to that power. The core of our disagreement is whether Congress's disapproval of disability discrimination is enough of a connection between the transportation funds and the condition imposed here. In my view, it is not.
. My point is not that the federal funds must be specifically appropriated for classroom instruction, but that the condition imposed on receiving the funds must be necessary and proper to providing education, regardless of how broad the educational programs financed by the funds are. That was true in Lau. Because prohibiting disability discrimination is not necessary and proper to providing mass transit, Lau is not applicable. The majority's explanation that ''[njothing in Lau suggested that the federal funds were, or had to be, intended for classroom instruction rather than, for example, the acquisition of equipment or the construction of athletic facilities,” Maj op. at 1169, does not speak to this point.
. This is the reason the Court did not need to require a connection between the bribe and the federal money: any bribe, the Court reasoned, bears a relation to the particular purpose of a grant of funds (whether it be mass transit, education, or mushroom subsidies). Bribed officials are untrustworthy regardless of the reason the government appropriates the funds. Thus, my distinction of Sabri does not, as the majority states, "overlook! ]”, Maj. op. at 1170 n.9, the fact that the Court did not require this connection. To the contrary, it explains why the court did not require it.
.The majority’s attempt to assert a particular connection between mass transit and disability discrimination is that "discrimination 'fritter[s] away' federal funds ... just like the graft discussed in Sabri," Maj. op. at 1170, and it is doubtful. The Supreme Court's point in Sabri was that bribed officials divert funds toward the source of the bribe to advance their own personal financial gain, necessarily away from the congressionally specified purpose for spending the funds. The fact that such officials are untrustworthy in this way therefore gave the Court a reason, apart from Congress's judgment that it did not like graft, to think that such a condition was necessary and proper to providing any federal funds.
There is no reason to believe that a similar diversion or lack of trustworthiness, and therefore, a similar connection to the federal
. The majority says that the Supreme Court in Grove City "treat[ed] the spending power” and implies that the reason this is so is because Grove City cited Pennhurst State School & Hospital v. Halderman,
