Document: 416 U.S. 251 94 S.Ct. 1746 40 L.Ed.2d 120 Con F. SHEA, Etc., et al., petitioners,v.Ascension VIALPANDO, Etc. No. 72—1513. Argued Feb. 26, 1974. Decided April 23, Syllabus Section 402(a)(7) of the Social Security Act requires state agencies in administering Aid to Families with Dependent Children (AFDC) program 'take into consideration . any expenses reasonably attributable earning income.' Such are deducted from an AFDC applicant's income determining eligibility for assistance. Colorado's regulations, which previously had permitted deduction all employment, including transportation expenses, were amended 1970 subject work-related (with certain exceptions) a uniform allowance $30 per month. This substantially reduced respondent's monthly deductions and corresponding increase her net made ineligible continued She then brought this action injunctive declaratory relief, claiming, inter alia, that standardized work-expense violated § 402(a)(7). The District Court granted summary judgment respondent, Appeals affirmed. Held: Colorado regulation conflicts is therefore invalid. Pp. 258—266. (a) In light statute's legislative history normal meaning term 'any,' language requiring 'any' reasonable work assistance be interpreted as congressional directive no limitation, apart reasonableness, may placed upon recognition hence fixed does not permit exceeding standard directly contravenes statute. P. 260. (b) Standardized treatment without provision showing actual amount threatens defeat purpose mandatory encouraging recipients secure retain since by limiting month results disincentive seek or employment whose exceed would amount. 263—265. (c) It adoption se violates 402(a)(7), but fact effect maximum absolute limitation such expenses. 265. 10 Cir., 475 F.2d 731, Douglas D. Doane Charles B. Lennahan, Denver, Colo., petitioners. Tom W. Armour, San Francisco, Cal., respondents. Mr. Justice POWELL delivered opinion Court. 1 1935, (Act), 42 U.S.C. 601 seq., required Act, 81 Stat. 881, 602(a)(7), employment-related process We certiorari, 414 999, S. Ct. 351, 39 235 (1973), determine whether, State adopt allow applicant deduct standard. hold it not. 2 * designed provide financial needy dependent children parents relatives who live care them. A principal program, indicated 601, help 'to attain capability self-support personal independence consistent maintenance continuing parental protection ..' 'is based on scheme cooperative federalism,' King v. Smith, 392 309, 316, 88 2128, 2133, 20 1118 (1968). financed large measure Federal Government matching-fund basis, participating States must submit plans conformity regulations promulgated thereunder Department Health, Education, Welfare (HEW). is, however, administered States, given broad discretion both need level benefits. See Jefferson Hackney, 406 535, 541, 92 1724, 1729, 32 285 (1972); Rosado Wyman, 397 397, 408—409, 90 1207, 1215—1216, 25 442 (1970); Dandridge Williams, 471, 478, 1153, 1158, 491 supra, U.S., at 318—319, S.Ct., 2133—2134. 3 Under HEW specify statewide need, deemed necessary maintain hypothetical family subsistence level. Both benefits individual comparison State's resources available applicant. 45 CFR 233.20(a)(2)(i). 'income resources' applicant, defined §§ 233.20(a)(6) (iii—viii), consist generally 'only actually current use regular basis only currently resources.' 233.20(a)(3)(ii)(c). also HEW, Simplified Methods Consideration Income Resources (1965). income, gross income. 602(a)(7). If, taking account these other issue instant case, 'earned income' less than predetermined eligible participation payments will difference. 233.20(a)(3) (ii)(a) (c). 4 Prior May 1970, limited cost transportation, if 'essential employment.'1 Child payroll treated computed individualized basis. policy was changed establishment either month, car essential, expense public transportation. Effective July 1, again addition child expenses: 5 'For special clothing, union dues, education training costs, telephone, additional food needs, etc., obligation due costs.'2 6 Thus, while subjected $30, even could prove excess figure. Regional Commissioner Rehabilitation Service thereafter accepted incorporation plan.3 7 When suit commenced Mrs. Vialpando employed some eight miles small community she resided two-year-old daughter. Since available, respondent traveled each day used automobile purchased purpose. making requisite determinations under been $47.30 mileage costs $63.81 payments4 These approximately $110 coupled deductions, entitled grant $74 herself amendment reduce related $30. earned rendered assistance.5 8 Respondent thereupon class United 1983 28 1343(3) (4). sought convening three-judge Court, requested relief Equal Protection Clause Fourteenth Amendment. Named defendants Executive Director Services officers involved program. Upon stipulated facts reliance unreported order motion enjoined enforcement challenged regulation.6 Finding pendent federal statutory claim dispositive, properly did reach constitutional convene court. Hagans Lavine, 415 528, 1372, 577 (1974). 9 Tenth Circuit 731 (1973). Relying provisions court words 'any expenses' mean 'all expenses,' held meet requirement. reasoned statute read where adequate cover agree. II originally enacted, 49 620, expressly require beneficiaries incurred connection precursor appeared 1939 amendments 53 1379, provided simply 11 'the agency shall, take claiming aid children.' 12 Board, entity overseeing categorical programs, soon recognized predecessor program7 recipient families working members taken keeping Act's when produced thereby eliminate entirely assistance, Board failure consider result employment. Accordingly, credit eligibility.8 13 As part general 1962, Pub.L. 87 543, 76 185, Congress widespread optional practice deducting total thus relevant part: 14 '(T)he relative children, well .' (Emphasis added.) 15 By its terms, evolution we contrary 16 Petitioners, relying consideration' phrase argue requirement 'consideration' satisfied statistical average participants State. But argument ignores modifies (emphasis added). seems inescapable whatever accorded extended And, has consistently compute 17 From inception ensure families, paid needed case after considered.9 careful particular account, approach reflected implementing regulations. For example, HEW's definition cash kind through receipt wages, salary, commissions, profit activities he engaged self-employed employee,' 233.20(a)(6)(iii), more specific descriptions commissioned, salaried, self-employment derived 233.20(a)(6)(iv—viii),10 demonstrate view determination assessment individual's resources. Moreover, clearly contemplated providing exclusion items scholarship funds loans, see 233.20(a)(3)(ii—vii), stamps deducted, 233.20(a)(4). production alike, terms appear require, considered basis.11 18 literal import confirmed history. set forth S.Rep.No.1589, 87th Cong., 2d Sess., 17—18 (1962), U.S.Code Cong. & Admin.News, pp. 1959, 1960, explained: 19 'Under present law permitted, required, (this country substantial number full given). committee believes fully account. existing they have portion budget spent reducing food, shelter. bill has, therefore, added titles give Virtually identical appears House Report. H.R.Rep.No.1414, 23 (1962). 21 encourage produce Failing might discourage seeking retaining whereby incurred. aimed removing disincentive. then-Secretary Ribicoff explained legislation testimony before Senate: 22 '(W)e trying do everything can people get job feel important States. having provision, so jobs. I believe should them those job.' Hearings Public Assistance 1962 Senate Committee Finance, 152 (1962).12 demonstrating amount, adopted, goal achieve adopting 24 course, violative correctly observed, permissible, serve petitioners' interests administrative efficiency, F.2d, 735. Anderson Graham, 492 986 (CA8 1973); Adams Parham, Civ. 16041 (N.D.Ga. Apr. 14, 1972) (unpublished); Campagnuolo White, 13968 (Conn. June 22, (unpublished). comport considered, necessary.13 area times 'has voiced wishes muted strains left courts discern theme cacophony political understanding.' 412, 1218. spoken firmness clarity. 26 27 ordered. 4313.13, vol. Division Staff Manual (effective March 1970), 'Employment received include, restricted to: 'Transportation 'Public allowed cost. his own work, 5¢ mile allowed, plus parking fees required. Purchase, repair, upkeep vehicle, essential plan approved county department.' 4, 1970). figure survey persons Colorado. calculated examining every last quarter year 1969 1970. included uniforms tools, items, excluded care. varied low $30.55 high $36.93 According Colorado, presently employ combination cases systems allowances one major expense. Brief Amicus Curiae 5. often litigation. 1973) (Nebraska $25 allowance); Connecticut Dept. Pub. 448 209 (CA2 1971) (Connecticut types deductible expenses); Civil Action (unpublished) (Georgia $35 $60 full-time $40 part-time Williford Laupheimer, 311 F.Supp. 720 (E.D.Pa.1969) (Pennsylvania $50 County Alameda Carleson, Cal.3d 730, 97 Cal.Rptr. 385, 488 P.2d 953 (1971), appeal dismissed, 913, 1762, 112 (1972) (California ranging $6 month). X McCorkle, 333 1109 (D.C.N.J.1970), modified grounds, sub nom. Engelman Amos, 404 181, 30 143 dicta New Jersey's allowance. Conover Hall, Cal.App., 104 77 (1972), decision vacated pending California Supreme upheld California's make installment purchase car. Consistent reasonableness were, quite correctly, case-by-case counsel commented oral argument: 'This El Paso County, same presented technician another expense, closer home transportation.' Tr. Oral Arg. 33—34. concedes responsibility inquiring whether claimed excessive truly 4. No doubt scrutinize automobiles capital expenditures purposes unrelated Recognizing programs not, resolve us—whether ban matter how necessary, above cutoff Another change terminate medical Title XIX 1396a(a)(10). While terminated grant. hearing, returned incurring Although receive despite renewed significantly lower full. known 'Aid Children.' 627. name Needy Chlldren,' 87—543, 104(a)(1) 104(a)(2). 3140 Handbook Administration, Part IV (1957), 'A establish minimum money represent combined three items—food, incidentals—for persons. there do, fact, exist case.' Bureau Assistance, Letter (Apr. 30, 1942); 291 (Mar. 11, 1957) (indicating approval deductions). 601; H.R.Doc.No.81, 74th 1st Sess. (1935); H.R.Rep.No.615, S.Rep.No.628, E. Witte, Development 163—164 provides '(iv) With reference means irrespective income-tax lunches, personal, materials, uniforms, call customers. '(v) respect self-employment, business enterprise, farming, resulting 'business i.e., Personal payments, classified '(vi) shall exclude following income': Returns investment himself actively engaged, (for most circumstances, dividends interest income'); (not nature profit) accruing compensation, reward service, compensation lack .. '(vii) regard degree activity, performance services recipient; words, earns efforts, managerial responsibilities, management real estate. Conversely, instance wherein carries responsibility, rental properties hands check forwarded recipient, '(viii) Reserves accumulated earnings different reserves sources.' Petitioners practical necessities administration Department's construction great weight. Red Lion Broadcasting Co. FCC, 395 367, 89 1794, 371 (1969); Udall Tallman, 380 85 792, 616 sound principle according deference normally applies unclear susceptible differing interpretations. See, e.g., Townsend Swank, 282, 286, 502, 505, (1971). requirements accord underlying enactment, look case. itself adhered practice. recent years construed standardization 1964 '(i)tems IV, 1340 (1964). Our interpretation supported disinclination amend section various allowances. H.R.16311, 91st 101 H.R.1, 92d 401 explaining latter bill, replaced disregard 402(a)(8)(A)(ii), Ways Means observed 'would open-ended H.R.Rep.No. 92—231, p. 177 S.2311 H.R.3153, 93d Court's observation 419, 1221, (1970), '(w)e York statutes, consolidate averages,' sense intended blanket averaging what being averaged. found fixing eliminating 'special grants' contravention 402(a)(23) Act. holding completely noted could, statute, include averages. estimate welfare officials family, very computation 318 n. 2134, (1968), contrasts sharply considered. face command clear statement purpose, reject claims efficiency convenience. 417, 1220. note justified undisputed power supra; (1972). adjust percentage agreed pay funding, manner 1971).

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