Cook County, Illinois v. Wolf

District Court, N.D. Illinois·Decided November 2, 2020·No. 1:19-cv-06334·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

COOK COUNTY, ILLINOIS, an Illinois governmental ) entity, and ILLINOIS COALITION FOR IMMIGRANT ) AND REFUGEE RIGHTS, INC., ) 19 C 6334 ) Plaintiffs, ) Judge Gary Feinerman ) vs. ) ) CHAD F. WOLF, in his official capacity as Acting ) Secretary of U.S. Department of Homeland ) Security, U.S. DEPARTMENT OF HOMELAND ) SECURITY, a federal agency, KENNETH T. ) CUCCINELLI II, in his official capacity as Acting ) Director of U.S. Citizenship and Immigration Services, ) and U.S. CITIZENSHIP AND IMMIGRATION ) SERVICES, a federal agency, ) ) Defendants. ) MEMORANDUM OPINION AND ORDER Cook County and Illinois Coalition for Immigrant and Refugee Rights, Inc. (“ICIRR”) allege in this suit that the Department of Homeland Security’s (“DHS”) final rule, Inadmissibility on Public Charge Grounds, 84 Fed. Reg. 41,292 (Aug. 14, 2019) (“Final Rule” or “Rule”), is unlawful. Doc. 1. Plaintiffs claim that the Rule violates the Administrative Procedure Act (“APA”), 5 U.S.C. § 701 et seq., because (1) it exceeds DHS’s authority under the public charge provision of the Immigration and Nationality Act (“INA”), 8 U.S.C. § 1182(a)(4)(A); (2) is not in accordance with law; and (3) is arbitrary and capricious. Doc. 1 at ¶¶ 140-169. ICIRR also claims that the Rule violates the equal protection component of the Fifth Amendment’s Due Process Clause. Id. at ¶¶ 170-188. On October 14, 2019, this court preliminarily enjoined DHS from enforcing the Final Rule in the State of Illinois, reasoning that the Rule likely violates the APA because it interprets the term “public charge” in a manner incompatible with its statutory meaning. Docs. 85, 87, 106 (reported at 417 F. Supp. 3d 1008 (N.D. Ill. 2019)). DHS appealed. The Seventh Circuit denied DHS’s motion to stay the preliminary injunction pending appeal, No. 19-3169 (7th Cir. Dec. 23, 2019), but the Supreme Court issued a stay, 140 S. Ct. 681 (2020) (mem.). Meanwhile, DHS

moved to dismiss the suit under Civil Rules 12(b)(1) and 12(b)(6). Doc. 124. This court denied DHS’s motion and granted ICIRR’s request for extra-record discovery on its equal protection claim. Docs. 149-150 (reported at 461 F. Supp. 3d 779 (N.D. Ill. 2020)). And this court denied DHS’s motion to certify under 28 U.S.C. § 1292(b) an interlocutory appeal of the denial of its motion to dismiss the equal protection claim. Docs. 183-184 (reported at 2020 WL 3975466 (N.D. Ill. July 14, 2020)). Shortly after this court denied DHS’s motion to dismiss, the Seventh Circuit affirmed the preliminary injunction, reasoning that the Final Rule likely violates the APA. 962 F.3d 208 (7th Cir. 2020). Armed with the Seventh Circuit’s decision, Plaintiffs move for summary judgment on their APA claims. Doc. 200. They seek a partial judgment under Civil Rule 54(b)—one that

would vacate the Rule pursuant to the APA and allow continued litigation on ICIRR’s equal protection claim. Docs. 217-218. Plaintiffs’ motion is granted. A Rule 54(b) judgment is entered, the Final Rule is vacated, DHS’s request to stay the judgment is denied, and ICIRR’s equal protection claim may proceed in this court. Discussion The pertinent background is set forth in this court’s opinions and the Seventh Circuit’s opinion, familiarity with which is assumed. I. Plaintiffs’ Summary Judgment Motion DHS forthrightly concedes that the Seventh Circuit’s opinion affirming the preliminary injunction effectively resolves the APA claims on the merits in Plaintiffs’ favor. Doc. 209 at 7 (“Defendants do not dispute that the Seventh Circuit’s legal conclusions concerning the Rule may justify summary judgment for Plaintiffs on their APA claims here.”); Doc. 219 at 1 (“Plaintiffs have argued, and Defendants do not dispute, that the Court may grant Plaintiffs’ pending [summary judgment motion] in light of the Seventh Circuit’s decision affirming the

Court’s preliminary injunction order.”). That concession is appropriate given the Seventh Circuit’s conclusion that the Final Rule is both substantively and procedurally defective under the APA. 962 F.3d at 222-33. As for substance, the Seventh Circuit held in pertinent part as follows: … Even assuming that the term “public charge” is ambiguous and thus might encompass more than institutionalization or primary, long-term dependence on cash benefits, it does violence to the English language and the statutory context to say that it covers a person who receives only de minimis benefits for a de minimis period of time. There is a floor inherent in the words “public charge,” backed up by the weight of history. The term requires a degree of dependence that goes beyond temporary receipt of supplemental in-kind benefits from any type of public agency. * * * The ambiguity in the public-charge provision does not provide DHS unfettered discretion to redefine “public charge.” We find that the interpretation reflected in the Rule falls outside the boundaries set by the statute. Id. at 229.* As for procedure, and in the alternative, the Seventh Circuit held that the Rule was “likely to fail the ‘arbitrary and capricious’ standard” due to “numerous unexplained serious

* Although the Seventh Circuit reached its conclusion under step two of Chevron and this court stopped at step one, there is less dissonance between the two opinions than meets the eye. Adopting the methodological approach urged by DHS—which it has since abandoned—that “‘the late 19th century [is] the key time to consider’ for determining the meaning of the term ‘public charge,’” 417 F. Supp. 3d at 1023 (quoting DHS’s brief in opposition to Plaintiffs’ motion for preliminary injunction), this court concluded from an examination of contemporaneous court decisions, dictionaries, and commentary that “an alien [cannot] be deemed a public charge based on the receipt, or anticipated receipt, of a modest quantum of public benefits for short periods of time,” id. at 1026. See id. at 1022-29 (analyzing the cases, dictionaries, and commentary). And as just noted, the Seventh Circuit held that “[t]here is a flaws: DHS did not adequately consider the reliance interests of state and local governments; did not acknowledge or address the significant, predictable collateral consequences of the Rule; incorporated into the term ‘public charge’ an understanding of self-sufficiency that has no basis in the statute it supposedly interprets; and failed to address critical issues such as the relevance of

the five-year waiting period for immigrant eligibility for most federal benefits.” Id. at 233. Given these holdings, DHS is right to acknowledge that this court should grant summary judgment to Plaintiffs on their APA claims. The parties disagree, however, about the appropriate remedy. Plaintiffs ask this court to vacate the Final Rule. Doc. 201 at 35-37. DHS contends that this court should vacate the Rule only insofar as it affects Plaintiffs, meaning that the vacatur should be limited to the State of Illinois. Doc. 209 at 27-29. Plaintiffs are correct. The APA provides in pertinent part that “[t]he reviewing court shall … hold unlawful and set aside agency action, findings, and conclusions found to be … arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A). “[A]gency

action” includes “the whole or a part of an agency rule.” Id. § 551(13).

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