Linkenhoker v. WeinbergerLinkenhoker v. Weinberger
In this action plaintiffs, Jean Linkenhoker, Carolyn Jones and Annie Gray, challenge the validity of a federal regulation,
I.
The facts supporting plaintiffs’ allegations are undisputed. Prior to March, 1974, Ms. Linkenhoker and five of her children were totally supported by monthly public assistance payments of approximately $270 from the federally-assisted and Maryland-administered AFDC program. In March, 1974, under the terms of the federal public service employment program,
The AFDC program began in 1935 as Title IV to the Social Security Act,
(1) (A) a program placing as many individuals as is possible in employment, . . . (2) a program of institutional and work experience training for those individuals for whom such training is likely to lead to regular employment, and (3) a program of special work projects for individuals for whom a job in the regular economy cannot be found. [Pub.L. 90-248, Title II, § 204(b), 81 Stat. 884 (1968), as amended42 U.S.C. § 632(b) (1971) (emphasis added) ].
In 1971, Congress amended the third component of the WIN program by abolishing special work projects and substituting in their place a program of public service employment.
In determining eligibility for AFDC benefits, the Social Security Act mandates that the state welfare agency shall take into consideration all other income and resources of children, relatives and other individuals living in the indigent family.
(a) A State plan for aid and services to needy families with children must *452 (8) provide that, in making the determination [of eligibility] under clause
(7), the State agency—
(A) shall with respect to any month disregard—
(ii) in the ease of earned income . the first $30 of the total of such earned income for such month plus one-third of the remainder of such income for such month (except that the provisions of this clause (ii) shall not apply to earned income derived from participation on a project maintained under the programs established bysection 632(b)(2) and (3) of this title)-, [emphasis added].
The above provision of the statute expressly provides that the disregard for the first $30 plus one-third of the remaining monthly income shall not apply to income earned from participation on a
(iv) Earned income, for purposes of disregarding the first $30 plus one-third of the remainder of monthly earnings, pursuant to subdivision (ii) (b) of this subparagraph, includes work allowances and training incentive payments under the MDTA, payments under the Economic Opportunity Act of 1964, including payments to the beneficiaries of assistance under that act, and earnings under title I of the Elementary and Secondary Education Act. The $30 plus one-third disregard does not apply to income from public service employment under WIN nor to incentive payments or reimbursement of training-related expenses made by the manpower agency to any participant in institutional and work experience training under WIN. (v) In summary, the effect of these regulations, for treatment of income and expenses under WIN, is as follows:
(a) For earned income from regular employment or on-the-job training, pursuant to section 432(b)(1) of the Act, the first $30 plus one-third of the remainder are disregarded, and work related expenses are then deducted from the remaining income;
(b) For institutional and work experience training, pursuant to section 432(b) (2) of the Act, the $30 monthly incentive payment and the reimbursement for training related expenses made by the manpower agency are totally disregarded; and
(c) For public service employment, pursuant to section 432(b)(3) of the Act, work related expenses are deducted, but the $30 plus one-third disregarded does not apply. [Emphasis added.]
Plaintiffs, as participants in the public service employment program, direct their challenge to the emphasized portions of the above regulation. In the view of this Court, these portions of the regulation are founded on, and go no further than, the mandate of the statute at
In upholding the validity of the regulation challenged by plaintiffs, this Court notes that the real foundation of the complaint does not rest on the alleged invalidity of
(B) that aid under the plan will not be denied by reason of ... an individual’s participation on a project under the program established bysection 632(b)(2) or (3) of this title;
(D) that . . . income derived from a special work project under the program established bysection 632(b)(8) of this title shall be disregarded in determining the needs of an individual undersection 602(a)(7) of this title . . . . [Emphasis added.]
Plaintiffs argue that these provisions, and in particular
This Court is unable to find merit in plaintiffs’ contention that
Plaintiffs’ construction of
Second, plaintiffs’ construction of the statute is unreasonable because it completely overlooks the 1971 substitution of public service employment for special work projects as the third element of the WIN program. The provision of the statute relied upon by plaintiffs,
Finally, plaintiffs’ argument is unreasonable because it distorts entirely the original operation and effect which
(E) that, with respect to any individual referred pursuant to subparagraph (A) who is participating in a special work project under the program established bysection 632(b) (3) of this title, (i) the State agency, after proper notification by the Secretary of Labor, will pay to such Secretary (at such times and in such manner as the Secretary of Health, Education, and Welfare prescribes) the money payments such State would otherwise make to or on behalf of such individual (including such money payments with respect to such individual’s family), or 80 per centum of such individual’s earnings under such program, whichever is lesser and (ii) the State agency will supplement any earnings received by such individual by payments to such individual (which payments shall be considered aid under the plan) to the extent that such payments when added to the individual’s earnings from his participation in sucb special work project will be equal to the amount of the aid that would have been payable by the State agency with respect to such individual’s family had he not participated in such special work project, plus 20 per centum of such individual’s earnings from such special work project; ....
In 1971, when the public service employment program was substituted for the old program of special work projects,
A hypothetical example of the application of
Congress, however, expressly avoided such a double recovery by operation of
Subsequent to reimbursing the Secretary of HEW, the state was required by
Plaintiffs argue that the
From the preceding examination of the nexus between
In the view of this Court, the retention of
Unquestionably the courts, in interpreting a statute, have some “scope for adopting a restricted rather than a literal or usual meaning of its words where acceptance of that meaning would lead to absurd results * * * or would thwart the obvious purpose of the statute.” Helvering v. Hammel,311 U.S. 504 , 510-511,61 S.Ct. 368 , 371,85 L.Ed. 303 ; cf. Commissioner v. Gillette Motor Transport, Inc.,364 U.S. 130 , 134,80 S.Ct. 1497 , 1500,4 L.Ed.2d 1617 ; and Commissioner v. P. G. Lake, Inc.,356 U.S. 260 , 265,78 S.Ct. 691 , 694,2 L.Ed.2d 743 . [C. I. R. v. Brown,380 U.S. 563 , 571,85 S.Ct. 1162 , 1166,14 L.Ed.2d 75 (1965).]
For the reasons given above, this Court finds plaintiffs’ construction of
II.
Turning now to plaintiffs’ second claim, this Court is unable to find merit in the argument that Ms. Linkenhoker was denied equal protection of the laws. Plaintiffs contend that if the one-hundred percent income disregard of
At the outset, it must be noted that plaintiffs’ equal protection argument fails to state a claim upon which relief can be granted. The classification which plaintiffs attack, i. e. the difference in income disregard allowances afforded to welfare recipients employed in the regular economy on the one hand,
*457
and to public service employees on the other, derives from a federal statute and not from a state law.
While defendants have not raised the objection, the Court must emphasize that there is only one equal protection guarantee, and it is embodied in the fourteenth amendment as a prohibition against the states, not against the federal government. As the Supreme Court has stated, “[ujnlike the Fourteenth Amendment the Fifth contains no equal protection clause and it provides no guaranty against discriminatory legislation by Congress.” Detroit Bank v. United States,
“[WJhile the Fifth Amendment contains no equal protection clause, it does forbid discrimination that is ‘so unjustifiable as to be violative of due process.’ ” Schneider v. Rusk,377 U. S. 163 , 168,84 S.Ct. 1187 , 1190,12 L.Ed.2d 218 (1964); Bolling v. Sharpe,347 U.S. 497 ,74 S.Ct. 693 ,98 L.Ed. 884 (1954).
Nowhere in the complaint do plaintiffs allege that the challenged classification is so egregiously discriminatory as to be violative of due process. Having failed to state a claim upon which relief can be granted, plaintiffs’ equal protection argument must be dismissed.
It should be noted, however, that this Court would deny plaintiffs’ second claim on the merits even if it had been properly brought under the due process clause of the fifth amendment. The fact that welfare recipients employed in the regular economy are allowed, for purposes of determining AFDC eligibility, to disregard the first $30 plus one-third of their remaining monthly income, while public service employees are not allowed to take advantage of the same income disregard, does not constitute an arbitrary or discriminatory classification.
It is well-established that a legislative classification will be sustained if it is rationally related to a legitimate governmental interest. San Antonio Independent School District v. Rodriguez,
It being evident that the challenged classification is rationally related to a
*458
legitimate legislative purpose, this Court finds that plaintiffs have not been denied equal protection of the laws. Certainly, where there is no violation of the equal protection clause of the fourteenth amendment, there can be no “ . discrimination that is ‘so unjustifiable as to be violative of due process’ ” under the fifth amendment. Shapiro v. Thompson,
supra,
III.
Finally, plaintiffs claim that they are at least entitled to a partial income disregard on the basis of Rule 7.02.09.-06B(7)c(2) of the Maryland Department of Employment and Social Services. Said Rule provides that the first $30 plus one-third of the remainder of earned monthly income is to be disregarded in determining AFDC eligibility. Unlike the federal provision at
While it may well be true that defendant Mason has ignored the prescription of the state regulation, such action is entirely consistent with the mandate of the federal statute. It is well-established that a state, in order to participate in the federal AFDC program, must maintain a system which complies with the federal Social Security Act. Townsend v. Swank,
Section 402(a) (10) of the Social Security Act,42 U.S.C. § 602(a) (10) , places on each State participating in the AFDC program the requirement that “aid to families with dependent children shall be furnished with reasonable promptness to all eligible individuals..” “Eligibility,” so defined, must be measured by federal standards. [Emphasis added.]
While the Maryland Department of Employment and Social Services may well be remiss in not having revised its regulation to comport with the current federal mandate, defendant Mason has acted with complete propriety in measuring the eligibility of plaintiffs for AFDC benefits by the federal standard.
For the reasons stated above, it is this 8th day of January, 1975, ordered:
1. That defendant Weinberger’s Motion for Summary Judgement be, and the same hereby is, granted in all respects ;
2. That plaintiffs’ Motion for Summary Judgment be, and the same hereby is, denied in all respects;
3. That judgment be entered for defendants as to all three counts of the complaint.
Notes
. House Report No. 92-231, 3 U.S.Code Cong. & Admin.News, 1972, p. 4990 provides :
Your committee’s proposals for welfare reform have been formulated during a period of mounting Congressional concern, both over the extraordinary growth in the welfare rolls, particularly in the aid to families with dependent children (AFDC) program, and in the nature of that growth. ... In 1967, a year during which the Congress sought to make major changes and improvements in the welfare system by passing the Social Security Amendments of 1967, the amount of Federal, State and local money being used for cash payments for AFDC recipients was about $2 billion. The estimate for 1972 is about $6.8 billion, or more than three times as much as was paid just five years earlier.
. Pub.L. 92-223, 85 Stat. 803 (Dec. 28, 1971) amended the Work Incentive Program by striking out the phrase “special work project” and inserting in lieu thereof “public service employment” in each of the following sections:
. In H.R.Rep.No.231, 92d Cong., 1st Sess. 170 (1971), Congress described tiie public service employment program in the following, manner:
It is not intended that these jobs be used on a long-term, permanent basis to support individual recipients. They should be viewed to the extent possible, considering existing economic conditions, as providing transitional emjdoyment that will help prepare individuals for regular, unsubsidized jobs when they are available.