Document: 481 U.S. 368 107 S.Ct. 1807 95 L.Ed.2d 328 William L. LUKHARD, Commissioner, Virginia Department of Social Services, Petitionerv.Ona Mae REED et al. No. 85-1358. Argued Jan. 14, 1987. Decided April 22, Syllabus The federal statute governing the Aid to Families With Dependent Children (AFDC) program requires participating States consider a family's "income and resources" in determining whether it is needy, prohibits payment benefits any month which either income or resources exceed state-prescribed limits. Because are separately computed generally subject different state limits, for how long family that acquires sum money rendered ineligible AFDC may depend on classified as resource. Prior 1981, Health Human Services (HHS) required treat acquired given resource following months. However, because HHS' concern recipients large amount had an incentive spend quickly possible order reduce their level beneath limit, Congress amended provide who receive exceeding State's standard need many months would last if spent equal each month. In response this amendment, (VDSS) revised its regulations various lump-sum payments, including personal injury awards, rather than resources, although continued property damage awards resources. Respondents, award were thereby under Virginia's regulations, filed class action Federal District Court against Secretary HHS petitioner Commissioner VDSS. granted summary judgment class, holding common meaning "income" precluded application term was irrational while treating Appeals affirmed. Held: reversed. 774 F.2d 1270 (CA 4 1985), Justice SCALIA, joined by THE CHIEF JUSTICE, WHITE, andJustice STEVENS, concluded respondents have not demonstrated policy inconsistent with regulations. Pp. 374-383. (a) consistent used statute. Respondents' premise usage involving gain excludes purely compensatory nature false, since such often compensate loss form lost wages, and, extent at least, must be considered income. More importantly, itself contradicts respondents' contention, Heckler v. Turner, 470 184, 105 1138, 84 138, held that, provision involved here, part employee's salary allocated work-related expenses—clearly "gain" sense use term—is properly treated 374-376. (b) fact expressly excluded from Internal Revenue Code, Food Stamp Program, poverty guidelines does mean automatically but, fact, supports opposite proposition they included when, statute, silent subject. Moreover, no presumption definition can inferred all attempt define explicit differences three programs' treatment too great. 376-377. (c) administrative legislative history Contrary evidence indicates has years interpreted least permit inclusion "income," interpretation entitled deference. 377-380. (d) There merit contention healthy bodies merely bodies. count only real "resources." 380—381. (e) Treating violate regulation requiring eligibility conditions result arbitrary exclusions inequitable treatment, distinguished ground restore previous levels. conclusion substantial 381—383. BLACKMUN should upheld endorsement flatly, deference owed his complex statutes. 383—384. J., announced delivered opinion REHNQUIST, C.J., WHITE JJ., joined. BLACKMUN, concurring judgment, post, p. ----. POWELL, dissenting opinion, BRENNAN, MARSHALL, O'CONNOR, joined, Thomas J. Czelusta, Richmond, Va., petitioner. Glen D. Nager, Washington, D.C., amicus curiae, pro hac vice, special leave Court. Jill A. Hanken, respondents. SCALIA STEVENS join. 1 case, United Fourth Circuit social-services agency could lawfully when families seeking benefits. Reed & (1985). Seventh reached conclusion. Watkins Blinzinger, 789 474 (1986). We certiorari resolve conflict. 477 903, 106 3271, 91 561 2 * Under program, financial assistance dependent children partially reimbursed Government. 49 Stat. 627, amended, 42 U.S.C. §§ 601-615 (1982 ed. Supp. III). Although largely free determine appropriate assistance, administer plans conformity applicable statutes promulgated (HHS). Those require 53 1379, § 602(a)(7)(A) ed., III), prohibit them providing limits (subject ceiling), 844, 602(a)(7)(B), 602(a)(17), 602(a)(18) 3 (and also two differ), however, importance classification minimized requirement received Thus, exceeded limit one month; remained subsequent yet been spent, combined value other limit. became concerned rapidly possible, regain reducing To solve problem, proposed passed amendment exceeds Section 2304 Omnibus Budget Reconciliation Act 1981 (OBRA), 845, 602(a)(17) OBRA applies terms income, distinction between took new importance. If resource, until enough bring down limit; but matter much remain statutory period. (the responsible administering program) ADC Manual (Va. Manual) 305.4C (Jan. 1983), App. Pet. Cert. 71.1 It did not, alter proceeds sale conversion property—including awards—as 303.3, 25. 5 disqualified varying periods pursuant Lukhard, Western Virginia. They alleged sought monetary, injunctive, declaratory relief Rev.Stat. 1979, 1983, 701-706, 28 2201-2202. After certifying those whose decreased class' favor. same time therefore issued injunction forbidding Lukhard apply ordering him begin paying named plaintiffs members presently receiving notify deprived past court declined, pay retroactive benefits, stayed pending appeal except insofar plaintiffs. appealed cross-appealed. affirmed respects, (1985), petition. file separate petition supported Lukhard's position merits. II 6 principal "resources" support argument first advance broader violence interpret include awards. This begins compensatory, do recipients. And both general legal sources gain, see, e.g., Webster's Third New International Dictionary 1143 (1976) ("a recurrent benefit usu. measured . ."); C.J.S., Income, 531 (1944) ("In speech 'income' understood profit ." (footnote omitted)); Eisner Macomber, 252 189, 207, 40 193, 64 L.Ed. 521 (1920) (" 'Income defined derived capital, labor, combined,' provided gained through capital assets (quoting Stratton's Independence, Ltd. Howbert, 231 399, 415, 34 136, 140, 58 285 (1913); Doyle Mitchell Brothers Co., 247 179, 185, 38 467, 469, 62 1054 (1918))), conclude cannot fairly characterized But involve obviously intended significant wages. See F.2d, 476. Since surely replaces income.2 point out, commonly "any comes in," without regard related expenses incurred transactions producing net gain. See, Oxford English 162 (1933) ("That (considered reference amount, expressed money); receipts 529 ("Generally ordinarily means in; something paid over recipient; outgoing expenditures (footnotes 138 (1985) ("income" gross reasonably attributable earning). particularly significant, there we indicated respondents—is Id., 202, S.Ct., 1148. based demonstrates theory payments constitute (as term) described "income." contrary assertion, perfectly natural 7 Respondents seek derive guidelines. 26 104(a); 962, 2014(d)(8); 48 Fed.Reg. 7010, 7011 (1983). these instances express income—which causes fail absent exclusion embraces them. elsewhere wished exclude tends refute intent computations.3 Cf. Russello States, 464 16, 23, 104 296, 300, 78 17 Nor slightly relevant provisions guidelines, goal defining presumed "income"—one necessarily hand simply great presumption. Compare 2014(d)(8) (Food nonrecurring Security benefits), (1983) (HHS gains, gifts, inheritances), Brief 47 (conceding represent true statute). 8 next argue years, materials upon rely indicate most question. Handbook Public Assistance Administration, Part IV, S-3120, Supplement Administrative Use (Sept. 6, 1957), (retroactive foot might be); Memorandum June 7, 1973, 55-56 income); Amicus Curiae Lockhart Harden, C74-390A (ND Ga.), 61 damages so treated). 51 9191, 9196 (1986) ("[U]nder longstanding ., State option [e.g., awards] instead income"); Letter October 17, 66 ("Based precedent, historically unearned implementation [the amendment], exercise latitude"); July (under current policy, insurance settlements resources; California apparently treats 8, 1982, 62-63 (States claim resources). Illinois Amici permitted amendment).4 Secretary's statute—which deference, Chemical Manufacturers Assn. Natural Resources Defense Council, Inc., 116, 125, 1102, 1107, 90 (1985)5 actually undermines 9 make arguments amendment. First, aware manner. course whenever enacts legislation using word freeze place. Helvering Wilshire Oil 308 90, 100-101, 60 18, 24-25, 101 (1939). case aid cause, since, seen, permissible 10 At oral argument, hearing conducted consideration, submitted House Ways Means Committee document estimating eliminate 5,000 rolls year. Hearings Tax Aspects President's Economic Program before Means, 97th Cong., 1st Sess., pt. 1, pp. 265-266 (1981), 75-76. record suggests terminating 400 year implement 1.6% national caseload, argue, 80 according estimate. even granting accuracy numerical analysis opportunity contest—and ignoring dubious authority unexplained forecast made during committee hearing, disparity note faintest inference about one-third removed awards; number remaining terminations still far (about 270 80), certainly explicable decision One left suspicion error forecast. Nothing identified unlawful. 11 penultimate logic rests syllogism: (1) (2) bodies; (3) too. already noted minor syllogism see supra, 375—376. major premise. body said within (including liquid assets). 602(a)(7)(B) III); 45 CFR 233.20(a)(3)(i)(B), (ii)(E) worth more statute's $1,000 acceptance render every implementing families' permits (if indeed require) compensation diminution well-being kind covered wages (to clearly 375) economic caused offset, n. supra ). almost entirely well-being, term. 12 Once understood, clear reasonable. former viewed increasing recipients' pecuniary latter restoring existence distinction, coupled Lyng Payne, 476 926, 939, 2333, 2341-2342, 921 (1986), leads us reject difference violates HHS's "eligibility imposed individuals groups unreasonable basis, groups. 233.10(a)(1) (1986).6 13 considering measure evaluates way reflect fullness life. That portion constitutes earnings will eligibility, future otherwise earned; pain suffering payments. urged monthly pain-and-suffering-award member physical emotional better off additional suffering. Physical what designed take into account—as evident above normal where exists tortfeasor compensating it. Compensating noneconomic inequities life task daunting complexity, neither nor unreasonably leaves untouched. 14 Finally, agree dissent's our " 'override[s] States' traditional power state-created action.' Post, 389 Norfolk R. Co. Liepelt, 444 490, 500, 3, 100 755, 761, 689 (1980) (BLACKMUN, dissenting)). possibly so, wants peculiar solicitude prerogatives prevent striking own balance directing limited funds wealthy tort victims. now 5, supra. challenges regulation, objection irrelevant. III 15 16 Reversed. judgment. 18 I join plurality, base my vote reverse original due area complicated one, authorities able congressional light experience field. unacceptable Congress, clarify situation language unambiguously specifies intent. 19 whom O'CONNOR join, dissenting. 20 Today holds purpose eligible (AFDC). work hardship needy assist dissent. 21 established care Shea Vialpando, 416 251, 253, 94 1746, 1750, 120 (1974). provides sufficient maintain subsistence State. "resources."1 excess counted succeeding lump sums responded amending level. amendments changed "neither amendment] change 1981." 15. Accordingly, advised adhere existing definitions 5648, 5656 (1982). 22 promulgating rule injuries (Jan.1983), 71. issue medical prior 30 days after receipt remainder award, "representing suffering, earning capacity, expenses, punitive damages," Petitioner 5.2 respondents, ranging $181 $255 per month, worker's $700 $10,250. 13-19; 3-5. As result, ruled 27 primarily basic living repayment debts, items automobiles appliances. 13-19. exhausted modest regained 23 above, "A fundamental canon construction unless defined, words taking ordinary, contemporary, meaning." Perrin 37, 42, 311, 314, 199 (1979). plurality recognizes ' "the combined," assets. .' Ante, 375 (1918))). stock dividends taxable Solicitor concluded: 24 "If individual possessed right assignable susceptible appraisal relation market values, thereafter receives compromise invasion right, he derives profit. clear, therefore, Government tax received." I-1 Cum.Bull. 93 (1922). 25 later "accessions wealth, realized, taxpayers complete dominion." Glenshaw Glass 348 426, 431, 75 473, 476, 99 483 (1955). Glass, observed "[d]amages only," id., 432, cited "[t]he departmental rulings recoveries nontaxable roughly correspond return .," ibid. (citing 71 (1920); 92, (1922); VII-2 123 (1928); 1954-1 180). continues Code. 104(a). food stamps, 2014(d)(8), 7010-7011 (1983).3 Indeed, cite single am none. nevertheless concludes recipient. 375-376. observes plurality's view, computations." 376 (citation omitted; footnote omitted). silence unwarranted. purposes Code contrast, observed, "The inescapable wanted compel budget be." 474, 480 hardly justifies assumption narrower question On contrary, question, reasonable believe variety circumstances discussed below, effect deprive remedies, law. infer "purpose override action." 761 dissenting).4 29 "can gain." 374-375, 2. sure, some components plaintiff. Punitive damages, exceptional awarded, windfall plaintiff compensation. (punitive income). practical matter, impoverished unlikely does, ante, 375. agree, entire Damages injury, disfigurement, consortium, like recipient nonpecuniary losses. contexts, full avoid necessity "a administratively burdensome system" "confer humanitarian victim victims tort." 501, dissenting). elementary suffering." 1816 (emphasis original). account well-being. law workers' account. remedies "there it." Ibid. By token, decreasing suffering.5 31 During period moneys continuing rehabilitative expenses. 5.6 put hard choice obtaining needs children. Ona Reed, faced choice: She afford physician her accept Court's harsh result. 32 beyond dispute "[c]ompensating complexity. 382—383. view presented relatively straightforward. Our system compensates awarding actions proceedings. circumstances, recognized injured persons retain nature. unjust, deny affords rest society. deduct directly payment. Va. 72. pendency lawsuit, give ineligibility mandated 2632(a) Deficit Reduction 1984, 98 1141, availed option. (Oct.1984), 83-86. discuss infra, 380-383, typical dissent thinks speculate spoken. ("[I]f [personal income"). demonstrate legality passed, hypothetical "reasonable believe" For agency-interpreted "Congress intent," Chevron U.S.A. Inc. 467 837, 2778, 2783, 81 694 (1984), substitute administrator agency." 2782. 378-379, interpretation. observe none relied antedates passage true, observation significance. Older documents demonstrating recent asserting existence. absence evidence, existed. Similarly, reveal themselves allegedly reason draw lacuna. suit filed, 45558, 45568 (1984). Such promulgated. 233.20(a)(3)(ii)(F) determination invalidly event uphold practice reach questions. noted, altered adopting equitable considerations. contends promulgated, thus rendering prospectively moot disparate regulation. claim, invalid improperly consequences developments. live issue, resolution implies diminished created subsequently lenient unreasonable. home automobile up $1,500. 602(a)(7)(B); 233.20(a)(3)(i) disregard certain relatives 602(a)(8)(A), 602(a)(31). further guidance modified giving 2632 reduced 84. addition, recently declines rule. 379, 5. accord 378-379. 842-845, 2781-2783, amendments, comment settlement industrial 'lump sum' payment." added). concedes, amendments. 378, 4. Based record, 1981. defer think customary great" allow share 377. inheritances, undisputed representing family, program. gains programs asserts "simply irrelevant," 383, officials chose know States. 2, possibility preclude "equitable regulation," states treatment." 303.3 damaged wished, member, obliged meet needs. casualty increase "merely restor[e] levels." 381. less favorably losses failed consistently in." period, amounts care, rehabilitation, services award. 385; concedes damages." rules sum.

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