Opinion ID: 220365
Heading Depth: 1
Heading Rank: 7

Heading: Additional Guidance Promulgated by Defendants

Text: In April 2010, while this appeal was pending, HHS and USAID promulgated further guidance pertaining to the Policy Requirement  HHS in a formal regulation, USAID in a policy directive. HHS, Organizational Integrity of Entities That Are Implementing Programs and Activities Under the Leadership Act, 75 Fed. Reg. 18,760 (Apr. 13, 2010) (codified at 45 C.F.R. pt. 89); USAID AAPD 05-04 Amendment 3 (Apr. 13, 2010). The new guidance specifies that in order to comply with the Policy Requirement, a Leadership Act grantee must affirmatively state in the funding document that it is opposed to the practices of prostitution and sex trafficking because of the psychological and physical risks they pose for women, men, and children, 45 C.F.R. § 89.1; AAPD 05-04 Amend. 3 at 2, and reaffirms that a recipient cannot engage in activities that are inconsistent with [its] opposition to prostitution, 75 Fed.Reg. at 18,760. Neither the 2010 nor the 2007 guidance offers recipients insight as to what activities may be deemed inconsistent with an opposition to prostitution. The new guidance also modified the Guidelines for partnering with an affiliate that does not comply with the Policy Requirement. See 45 C.F.R. § 89.3. For example, under the revised Guidelines, which profess to allow more flexibility for funding recipients, 75 Fed.Reg. at 18,762, legal separation is no longer required but only one factor to be considered, and separate management is no longer expressly identified as a relevant factor, in determining whether a recipient has objective integrity and independence from an affiliate, 45 C.F.R. § 89.3.