Document: 435 U.S. 213 98 S.Ct. 1024 55 L.Ed.2d 225 Max CLELAND, Administrator of the Veterans Administration, et al.v.NATIONAL COLLEGE OF BUSINESS. No. 77-716. March 20, 1978. PER CURIAM. 1 The question presented is whether Due Process Clause Fifth Amendment prohibits Congress from restricting educational courses for which veterans' benefits are available under GI Bill1 without including identical course limitations in other federal assistance programs. 2 A veteran seeking must file an application with Veterans' Administration. Before approving application, determine veteran's proposed program satisfies various requirements, so-called 85-15 requirement and two-year rule. 3 requires to disapprove if enrolls a more than 85% students "are having all or part their tuition, fees, charges paid them by institution, Administration . and/or grants any Federal agency."2 Administrator, however, may waive he determines that it would be interest both Government. 4 rule enrollment eligible has been offered covered institution less two years. applies at branches extensions proprietary institutions located beyond normal commuting distance institution.3 5 Appellee National College Business extension programs several States. Most its have more. therefore affected 6 brought this action United States District Court South Dakota, challenging constitutionality restrictions.4 contended restrictions arbitrarily denied otherwise veterans equal protection because they were not made applicable persons whose educations being subsidized programs.5 held unconstitutional permanently enjoined enforcement. 433 F.Supp. 605 (1977). We reverse.6 7 * challenged appellee evolved response problems experienced administration earlier versions program. When World War II Bill Korean war was consideration 1952, House Select Committee Investigate Educational Training Loan Guarantee Programs studied had arisen Committee's work led passage first version requirement, applied only nonaccredited leading college degree institutions. Pub.L. 82-550, 66 Stat. 667. 8 purpose disputed: 9 "Congress concerned about schools developed specifically designed those moneys purchase such courses. ready availability these funds obviously served as strong incentive some enroll veterans. minimum wholly partially way protecting allowing free market mechanism operate. 10 "The price also required respond general demands open well spend. minimal number nonveterans find worthwhile valuable payment who enrolled authorized." S.Rep.No. 94-1243, p. 88 (1976) (Senate Report); U.S.Code Cong. & Admin.News 1976, 5310. 11 These same considerations prompted 1974 standard accredited § 203(3) 93-508, 1582. See Senate Report 88. 12 In 1976 further extended degree. found increased recruiting within category "directed exclusively veterans." recommending approval extension, on Affairs agreed " 'if higher learning cannot attract sufficient nonveteran nonsubsidized programs, presents great potential abuse our programs.' Id., 89, 5311. noted that, view magnitude expenditures Bill, essential "to limit situations substantial could occur." Ibid. Finally, emphasized "the no 85 percent student body receipt VA onerous particularly given fact today's do comprise major portion attending .." Ibid.7 13 product Congress' judgment regarding abuses based upon experience Bill. Thus, following "which almost aimed bill payments." 128, 5350. response, enacted. It barred operation one year. 81-266, 63 653. As "was device intended allow operate weed out [which] survive heavy influx 128; 14 Following war, amended cover least 227 Conflict (Veterans' Readjustment Assistance Act 1952), report accompanying amendment, characterized "a real safeguard assure sound training reasonable cost, seasoned institutions" observed effect during "considerable savings realized much better resulted many areas." H.R.Rep.No. 1943, 82d Cong., 2d Sess., 30 (1952). 15 again rule, making to, among institutions, private main institution. underlying coverage fully set forth legislation. Report, supra. There "spectacular" rise establishing branch campuses extensions. entering into "extensive contracts directed 129, 5351. dealing generated developments, stated: 16 '[A] instances attention represent Some cases involved contracting between nonprofit profit organizations whereby latter non-profit, school semester- quarter-hour basis. others, there arrangements outside firms latter, percentage tuition payment, perform services primarily locations school. efforts veterans.' Ibid.8 17 adoption concluded situation "great appear[ed] realized." 130, 5352. 18 legislative history demonstrates, valid exercises power. Experience since revealed need legislation wou d minimize risk, wasted little value. irrational conclude established attracted useful accomplishing objective "prevent charlatans grabbing education money." Both rational assumption [were allowed] operate," "weed virtue absence They imposed direct country's bills. indication encountered grant event, Constitution does require detect correct related before acting combat one. For "[e]vils field different dimensions proportions, requiring remedies. Or so legislature think. reform take step time, addressing itself phase problem seems most acute mind. select apply remedy there, neglecting others. prohibition Equal Protection [generally] goes ." Williamson v. Lee Optical Co., 348 483, 489, 75 461, 465, 99 L.Ed. 563 (1955). (Citations omitted.) 19 tested rationality, therefore, plainly proper authority. While agreeing rationally legitimate objectives, approach "fundamental personal rights" "elevated review" appropriate. Subjecting requirements heightened scrutiny, court precisely tailored prevent Since quality restrictions, unconstitutional. 20 Court's error recognition importance but failure give appropriate deference how best benefits. Legislative precision never constitutionally kind.9 21 basic principle govern assessment constitutional challenge law providing governmental payments monetary established. Governmental decisions spend money improve public welfare another 'not confided courts. discretion belongs Congress, unless choice clearly wrong, display arbitrary power, exercise judgment.' enacting kind government deny 'merely classifications laws imperfect. If classification "reasonable basis," offend simply "is mathematical nicety practice results inequality." ' Dandridge Williams, 397 471, 485, 90 1153, 1161, 25 491." Mathews De Castro, 429 181, 185, 97 431, 434, 50 389 (1976). 22 likely courses, andtwo-year satisfy test normally like this." Califano Jobst, 434 47, 54, 95, 99, 54 228 23 reversed. 24 ordered. Mr. Justice MARSHALL. 26 I believe questions appellee's due process claims, see ante, 215 n. 6, claim. note probable jurisdiction case oral argument. provisions contained Title 38 Code. U.S.C. 1651 seq. relate term often used describe generally, purposes opinion refers 1673(d) (1976 ed.), 205 94-502, 2387. appeal pending respects. 305(a) Improvement 1977, 95-202, 91 1442. However, amendments inapplicable students. 1789 509(b) 2401. recently amendment authorizes suggest will waived respect Other Courts upheld restrictions. See, e. g., Fielder Cleland, 115 (ED Mich.1977); Rolle 260 (RI 1977). Joining plaintiffs four former Business. lacked standing demonstrated court, appellee, suffer serious economic harm students, jus tertii doctrine assert claims Neither court's rulings Court. advanced theories unconstitutionality reasserts Court: (1) restrict ons violate substantive interfere freedom choice, (2) procedural afforded hearing should waived. contentions meritorious agree. raises question. changed computation base time calculation. This change, modified exclude quota receiving sources until completed study feasibility o computation. 1977. change bearing 85%. amplified testimony Congress. 129-130. contends completely deprive veterans—those live areas where requirements—of assistance. face channel toward determined worthwhile, make functionally unavailable living close proximity offering qualified unwilling unable move advantage Nevertheless, opportunity full basis greater judicial oversight judgment. San Antonio Independent School Rodriguez, 411 1, 35, 93 1278, 1297, 36 (1973), undisputed alone cause depart usual reviewing social egislation."

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