Opinion for the court filed by Circuit Judge J. SKELLY WRIGHT.
Opinion concurring in part and dissenting in part filed by Circuit Judge BORK.
J. SKELLY WRIGHT, Circuit Judge:
At issue in this case is the validity of regulations recently issued by the Secretary of the Department of Health and Human Services (HHS) requiring all providers of family planning services which receive funds under Title X of the Public Health Service Act (Title X) 1 (1) to notify parents or guardians within ten working days of prescribing contraceptives to unemancipated minors; (2) to comply with state laws requiring parental notice of, or consent to, the provision of any family planning services to minors; and (3) to consider minors who wish to receive services on the basis of their parents’ financial resources, rather than their own.2 Numerous organizations and individuals joined in a consolidated action in the District Court to enjoin the Secretary from enforcing these regulations. The lower court entered a preliminary, and then a final, injunction prohibiting enforcement of the new regulations on the ground that they constitute invalid agency action in excess of statutory authority. Because we agree that the regulations are fundamentally inconsistent with Congress’ intent and purpose in enacting Title X and are therefore beyond the limits of the Secretary’s delegated authority, we affirm the decision below.
I. Background
A. The Statute and Regulations
In 1970 Congress enacted Title X of the Public Health Service Act to establish a nationwide program with the express purpose of making “comprehensive family planning services readily available to all persons desiring such services.”3 Congress authorized the Department of Health, Education and Welfare (HEW) to make grants and enter into contracts with public or non[338] profit entities to assist in the establishment of family planning projects that offer a broad range of family planning methods, including the provision of prescription and nonprescription contraceptive drugs and devices. See 42 U.S.C. § 300(a) (as amended). The Title X program was originally funded for three years, but has since been reauthorized and refunded continuously.4
In light of the breadth of the statutory language and clear congressional intent that all persons receive such services,5 Title X grantees have served the teenage population from the inception of the program. Following enactment of Title X, however, Congress frequently expressed its increasing concern about the still unmet family planning needs of sexually active teenagers in this country. See, e.g., H.R.Rep. No. 1161, 93d Cong., 2d Sess. 14 (1974) (“certain population groups requiring these services are not being reached * * * including] teenagers”); S.Rep. No. 29, 94th Cong., 1st Sess. 55 (1975). Ultimately, Congress in 1978 amended the statute itself to require that Title X projects offer “a broad range of acceptable and effective family planning methods and services (including * * * services for adolescents).” See 42 U.S.C. § 300(a) (emphasis added). While this amendment simply codified accepted past practice, the added language clearly reflected Congress’ intent to place “a special emphasis on preventing unwanted pregnancies among sexually active adolescents.” S.Rep. No. 822, 95th Cong., 2d Sess. 24 (1978).6
In 1981 Congress again amended Title X, this time to require by statute that grantees encourage family participation in their Title X programs. With this additional language, Section 300(a) of the Act now reads:
The Secretary is authorized to make grants to and enter into contracts with public or nonprofit private entities to assist in the establishment and operation of voluntary family planning projects which shall offer a broad range of acceptable and effective family planning methods and services (including natural family planning methods, infertility services, and services for adolescents). To the extent practical, entities which receive grants or contracts under this subsection shall encourage family participation in projects assisted under this subsection.
42 U.S.C. § 300(a) (amendment emphasized).
On February 22, 1982 the Secretary published for public comment modifications of certain regulations governing Title X grants. Proposed as a means of implementing Congress’ 1981 amendment to Title X,7 the new regulations seek to mandate the encouragement of family participation in three basic ways. First, and most significantly, they require Title X grantees to notify a parent or guardian within 10 working days of initially prescribing contraceptives to an unemancipated minor.8 Without [339] verification that such notice was received, no further prescriptions may be provided to the minor.9
Second, the regulations require Title X recipients to comply with any state law that mandates notification or consent of parent or guardian upon provision of family planning services to a minor.10 Finally, the new regulations redefine the statutory phrase “low-income family” so as to require Title X grantees to consider the economic eligibility of minors on the basis of their parents’, rather than their own, financial resources.11
As the Department itself acknowledged, public response to the proposed regulations was “overwhelming.”12 Over 120,000 individuals and organizations contributed to the public comment.13 Among those opposing the proposed regulations were 19 major medical associations, including the American Medical Association and the American Psychiatric Association, 40 states,- and the District of Columbia. On January 26, 1983 HHS nevertheless promulgated the final regulations, virtually unchanged.14 They were accompanied by a 15-page preamble that generally discussed the comments submitted and the reasons for the new rules.15 The regulations were to take effect on February 25, 1983.
B. The Proceedings and Decisions Below
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Opinion for the court filed by Circuit Judge J. SKELLY WRIGHT.
Opinion concurring in part and dissenting in part filed by Circuit Judge BORK.
J. SKELLY WRIGHT, Circuit Judge:
At issue in this case is the validity of regulations recently issued by the Secretary of the Department of Health and Human Services (HHS) requiring all providers of family planning services which receive funds under Title X of the Public Health Service Act (Title X) 1 (1) to notify parents or guardians within ten working days of prescribing contraceptives to unemancipated minors; (2) to comply with state laws requiring parental notice of, or consent to, the provision of any family planning services to minors; and (3) to consider minors who wish to receive services on the basis of their parents’ financial resources, rather than their own.2 Numerous organizations and individuals joined in a consolidated action in the District Court to enjoin the Secretary from enforcing these regulations. The lower court entered a preliminary, and then a final, injunction prohibiting enforcement of the new regulations on the ground that they constitute invalid agency action in excess of statutory authority. Because we agree that the regulations are fundamentally inconsistent with Congress’ intent and purpose in enacting Title X and are therefore beyond the limits of the Secretary’s delegated authority, we affirm the decision below.
I. Background
A. The Statute and Regulations
In 1970 Congress enacted Title X of the Public Health Service Act to establish a nationwide program with the express purpose of making “comprehensive family planning services readily available to all persons desiring such services.”3 Congress authorized the Department of Health, Education and Welfare (HEW) to make grants and enter into contracts with public or non[338] profit entities to assist in the establishment of family planning projects that offer a broad range of family planning methods, including the provision of prescription and nonprescription contraceptive drugs and devices. See 42 U.S.C. § 300(a) (as amended). The Title X program was originally funded for three years, but has since been reauthorized and refunded continuously.4
In light of the breadth of the statutory language and clear congressional intent that all persons receive such services,5 Title X grantees have served the teenage population from the inception of the program. Following enactment of Title X, however, Congress frequently expressed its increasing concern about the still unmet family planning needs of sexually active teenagers in this country. See, e.g., H.R.Rep. No. 1161, 93d Cong., 2d Sess. 14 (1974) (“certain population groups requiring these services are not being reached * * * including] teenagers”); S.Rep. No. 29, 94th Cong., 1st Sess. 55 (1975). Ultimately, Congress in 1978 amended the statute itself to require that Title X projects offer “a broad range of acceptable and effective family planning methods and services (including * * * services for adolescents).” See 42 U.S.C. § 300(a) (emphasis added). While this amendment simply codified accepted past practice, the added language clearly reflected Congress’ intent to place “a special emphasis on preventing unwanted pregnancies among sexually active adolescents.” S.Rep. No. 822, 95th Cong., 2d Sess. 24 (1978).6
In 1981 Congress again amended Title X, this time to require by statute that grantees encourage family participation in their Title X programs. With this additional language, Section 300(a) of the Act now reads:
The Secretary is authorized to make grants to and enter into contracts with public or nonprofit private entities to assist in the establishment and operation of voluntary family planning projects which shall offer a broad range of acceptable and effective family planning methods and services (including natural family planning methods, infertility services, and services for adolescents). To the extent practical, entities which receive grants or contracts under this subsection shall encourage family participation in projects assisted under this subsection.
42 U.S.C. § 300(a) (amendment emphasized).
On February 22, 1982 the Secretary published for public comment modifications of certain regulations governing Title X grants. Proposed as a means of implementing Congress’ 1981 amendment to Title X,7 the new regulations seek to mandate the encouragement of family participation in three basic ways. First, and most significantly, they require Title X grantees to notify a parent or guardian within 10 working days of initially prescribing contraceptives to an unemancipated minor.8 Without [339] verification that such notice was received, no further prescriptions may be provided to the minor.9
Second, the regulations require Title X recipients to comply with any state law that mandates notification or consent of parent or guardian upon provision of family planning services to a minor.10 Finally, the new regulations redefine the statutory phrase “low-income family” so as to require Title X grantees to consider the economic eligibility of minors on the basis of their parents’, rather than their own, financial resources.11
As the Department itself acknowledged, public response to the proposed regulations was “overwhelming.”12 Over 120,000 individuals and organizations contributed to the public comment.13 Among those opposing the proposed regulations were 19 major medical associations, including the American Medical Association and the American Psychiatric Association, 40 states,- and the District of Columbia. On January 26, 1983 HHS nevertheless promulgated the final regulations, virtually unchanged.14 They were accompanied by a 15-page preamble that generally discussed the comments submitted and the reasons for the new rules.15 The regulations were to take effect on February 25, 1983.
B. The Proceedings and Decisions Below
Even before the final regulations were published, however, two separate actions were brought in the District Court to enjoin the Secretary16 and the Department from enforcing the regulations. Plaintiffs in one action were the Planned Parenthood Federation of America, Inc., a national organiza[340] tion concerned with family planning, and three of its member affiliates who receive Title X grants to provide family planning services and are therefore subject to the new regulations.17 The second suit was brought by the National Family Planning and Reproductive Health Association, Inc. (NFPRHA), a national nonprofit organization whose members are predominantly family planning clinics receiving Title X funding, and numerous other organizations and individuals affected by the regulations.18 The District Court consolidated the two actions.
On February 18, 1983 the District Court granted plaintiffs’ consolidated motions for preliminary injunction, ordering the Secretary and the Department to cease enforcement of the challenged regulations pending further order of the court.19 See Planned Parenthood Federation of America, Inc. v. Schweiker, 559 F.Supp. 658 (D.D.C.1983) (hereinafter cited as Planned Parenthood). In addressing plaintiffs’ likelihood of success on the merits, the court reviewed the statutory language of the 1981 amendment to Title X, its legislative history, and the general structure of Title X. The court concluded that the regulations requiring parental notification “are outside the scope of the agency’s authorizing legislation, and are therefore invalid.” Id. at 669. The court also held that the other two requirements— compliance with state parental notification and consent laws and redefinition of adolescent financial eligibility — are similarly invalid for violating the intent of Title X. Id. Since the court found that the regulations were promulgated in excess of statutory authority, it did not rule on plaintiffs’ allegations that the regulations are arbitrary and capricious and abridge the constitutional privacy rights of mature minors. See id. at 669 n. 19. On March 2, 1983 the court found that plaintiffs were entitled to judgment as a matter of law and so filed a final order in the case, making its injunction permanent. See id. at 670 (final judgment on cross-motions for summary judgment).20
III. Analysis
This appeal presents a straightforward issue of statutory construction.21 Urging reversal of the decision below, appellants, the Secretary and HHS, argue that the new regulations are perfectly consistent with the language and intent of the 1981 amendment to Title X and are therefore not in excess of statutory authority. Before addressing the merits of this assertion, we outline briefly this court’s scope of review.
[341] A. Standard of Review
An essential function of the reviewing court is to guard against bureaucratic excesses by ensuring that administrative agencies remain within the bounds of their delegated authority.22 To that end, it falls within the province of this court to interpret the proper limits of Congress’ delegation of authority in Title X and to determine whether the challenged regulations traverse those limits. As appellants duly point out, the rulemaking authority that Congress has delegated to the Secretary is broad indeed:
Grants and contracts made under this subchapter [42 U.S.C. § 300 et seq.] shall be made in accordance with such regulations as the Secretary may promulgate.
42 U.S.C. § 300a-4(a).
Yet, however sweeping this delegation of authority, it is not unlimited. We will declare regulations in excess of statutory authority if they “bear[ ] no relationship to any recognized concept of” the particular statutory terms at issue. Batterton v. Francis, 432 U.S. 416, 428, 97 S.Ct. 2399, 2407, 53 L.Ed.2d 448 (1977). Agency action must be found to be consistent with the congressional purposes underlying the authorizing statute. See id.; Morton v. Ruiz, 415 U.S. 199, 237, 94 S.Ct. 1055, 1075, 39 L.Ed.2d 270 (1974); Red Lion Broadcasting Co. v. FCC, 395 U.S. 367, 381, 89 S.Ct. 1794, 1802, 23 L.Ed.2d 371 (1966). In short, these regulations can be sustained only if this “reviewing court [is] reasonably able to conclude that the grant of authority contemplates the regulations issued.” Chrysler Corp. v. Brown, 441 U.S. 281, 308, 99 S.Ct. 1705, 1721, 60 L.Ed.2d 208 (1979).
Appellants further contend that, in construing the reaches of Title X, we must give great deference to the Secretary’s own interpretation of the statute.23 While courts frequently do give substantial deference to the administering agency’s interpretation of its statute,24 the deference accorded does vary from case to case,25 and under certain circumstances can dissipate altogether:
[D]eference must have limits where, as here, application of the [agency’s statutory interpretation] would be inconsistent with an obvious congressional intent * *. Courts need not defer to an administrative construction of a statute where there are “compelling indications that it is wrong.”
Espinoza v. Farah Manufacturing Co., 414 U.S. 86, 94-95, 94 S.Ct. 334, 339-340, 38 L.Ed.2d 287 (1974) (quoting Red Lion Broadcasting Co. v. FCC, supra, 395 U.S. at 381, 89 S.Ct. at 1802).26
In the present case there are indeed “compelling indications” that the Secretary has misconstrued Congress’ intent in enacting the 1981 amendment to Title X. Our own careful review of the language of the [342] statute and its legislative history makes it clear that these regulations not only violate Congress’ specific intent as to the-issue of parental notification, but also undermine the fundamental purposes of the Title X program. It is to this statutory analysis we now turn.
B. The 1981 Amendment to Title X and Parental Notification
1. Statutory language.
“[T]he starting point for interpreting a statute is the language of the statute itself.” ' CPSG v. GTE Sylvania, Inc., 447 U.S. 102, 108, 100 S.Ct. 2051, 2056, 64 L.Ed.2d 766 (1980). The 1981 amendment to Title X consists of just one simple sentence:
To the extent practical, entities which receive grants or contracts under this subsection shall encourage family participation in projects assisted under this subsection.
42 U.S.C. § 300(a) (Supp. V 1981).
According to the Secretary, the statute’s use of the word “shall” imposes a nondiscretionary duty upon Title X grantees to communicate with the teenager’s parents so as to involve them in their child’s contraceptive decisions.27 We cannot .agree. Certainly the use of the word “shall” presumptively implies some type of mandatory obligation on grantees.28 But the nature of that obligation is defined by the word “encourage.” As the District Court noted, Congress’ choice of this permissive and nonobligatory term is in itself revealing.29 Had Congress intended to mandate parental involvement, it could easily have done so with more appropriate and less ambiguous language such as “shall require family participation” or “shall notify the family.”30
Indeed, the very concept of encouragement is further weakened by the use of a qualifier “to the extent practical.” While no specific content may be given that phrase from the face of the statute,31 its use indicates Congress’ intent that the goal of encouraging family participation may well have to give way to other, more practical considerations. Contrary to appellant’s assertions, then, the express language of the statute certainly does not lend support to the Secretary’s interpretation of the amendment as “reasonably contemplating]” a parental notification requirement.
2. The legislative history.
Our inquiry into the congressional intent behind the 1981 amendment need not end with a simple parsing of the express terms of the statute. Although we find that the “plain meaning” of the statute is clear from its terms, we note that the legislative histo[343] ry is equally illuminating in this case.32 In particular, because appellants attach meaning to the fact that the statute does not expressly indicate precisely how Title X entities “shall encourage” family participation, reference to the legislative history is essential.
a. The 1981 Conference Committee report.
The Conference Committee report accompanying the 1981 amendment specifically addressed the new sentence:
The conferees believe that, while family involvement is not mandated, it is important that families participate in the activities authorized by this title as much as possible. It is the intent of the conferees that grantees will encourage participants in Title X programs to include their families in counseling and involve them in decisions about services.
H.R.Conf.Rep. No. 208, 97th Cong., 1st Sess. 799 (1981) (emphasis added).
We find this Conference Report statement to be a crystal-clear and unequivocal expression of congressional intent — an intent that controls the Secretary in the exercise of her or his rulemaking authority.33 Several points emerge from the Conference Committee’s explanation of the amendment. In enacting the amendment to encourage family participation, Congress most definitely did not intend to mandate family involvement.34 It is impossible to conceive of a more intelligible way to convey that meaning than the comment made by the committee. Thus, to the extent that the parental notification requirement of the new regulations operates to require family involvement, it is inconsistent with Congress’ intent.35
Furthermore, the conferees quite plainly explicate the manner by which they intend the Title X grantees to fulfill their statutory obligation to encourage family participation: “grantees will encourage participants * * * to include their families.” The Title X family planning projects are thereby directed to communicate with and encourage those seeking services to make their contraceptive choices with the assistance of their families. There is simply no way, in light of the conferees’ explanation, that the statute can be read as intending to permit the Title X projects to communicate directly with the parents as a means of fulfilling the statute’s “family participation” directive.36
Yet this is precisely the reading of the statute and the Conference Committee re[344] port that the Secretary would urge upon this court. Appellants seek to avoid the clear import of the Conference Committee report by arguing that enactment of the 1981 amendment represented a great change in Congress’ existing policy vis-á-vis parental notification and family involvement — a change in policy that would be furthered by the new regulations. They contend that the 1981 amendment “showed a clear shift in Congress’ thinking. * * * Congress indicated that grantees, themselves, were henceforth to encourage family involvement, and not simply to rely on their teenage clientele to involve their parents.” 37 According to appellants, Congress’ shift in intent is supposedly manifest, hot only in the express language of the statute, but in the Conference Committee report’s introductory statement about Title X:
Three changes were made in Title X by the conferees. The first was a statement added to section 1001 that “To the extent practical, recipients of grants shall encourage family participation.” * * *
H.R.Conf.Rep. No. 208, 97th Cong., 1st Sess. 799 (1981) (emphasis added).38
Appellants’ argument simply does not withstand close scrutiny. The conferees’ use of this word “changes” certainly cannot stand alone as definitive proof of a fundamental shift in congressional intent. Assuredly, there was a “change” in Title X — an entirely new sentence was added to the section of the Act. Whether this change of statutory language evidences a change of congressional purpose, however, depends upon Congress’ prior expressions of policy as to the issues of family involvement and parental notification.39
b. Congressional policy of encouraging family involvement.
Our detailed examination of Title X’s pre-1981 legislative history indicates that, far from signifying a shift in congressional opinion, the 1981 amendment simply raised to the statutory level pre-existing policy on this issue. For years earlier Congress had evinced its strong interest in encouraging family involvement in a teenager’s family planning decisions; the legislative history is replete with references to this goal. What is particularly striking is the extent to [345] which the various committee report references to this policy track, almost verbatim, the language of the 1981 Conference Committee report.
In 1975, for example, the Senate report accompanying the Title X reauthorization bill stated:
[T]he Committee believes that unmarried teenagers, where feasible, should be encouraged to involve their family [sic] in their decision about use of contraceptives.
S.Rep. No. 29, 94th Cong., 1st Sess. 55 (1975) (emphasis added). The Senate report accompanying that chamber’s version of the 1978 Title X reauthorization bill also emphasized the encouragement of family involvement:
This policy * * * has been stressed in prior committee reports and is a re assertion of existing Federal policy. It is not intended to restrict or discourage the provision of voluntary family planning services to those adolescents who want them, but only to try to enhance communication within the family unit.
S.Rep. No. 822, 95th Cong., 2d Sess. 40 (1978) (emphasis added). Finally, the House report accompanying its version of the bill subsequently enacted as the 1981 amendment noted “past Committee concern that in the process of contraceptive counseling, unmarried teenagers, where feasible, should be encouraged to involve their families in their decision about use of contraceptives.” H.R.Rep. No. 158, 97th Cong., 1st Sess. 82 (1981) (emphasis added; footnote omitted).
In light of this consistent legislative history, we believe that the reasonable and correct interpretation of the 1981 amendment is that offered by appellees: the added statutory language merely served to emphasize existing congressional policy and thus provides no basis for the Secretary’s radical departure in the means by which such family involvement is to be effectuated.40
c. Congressional policy of protecting confidentiality.
Congress, however, has long recognized not only the importance of family involvement, but the crucial importance as well of preserving patient confidentiality in the Title X program. In 1972 the Secretary first promulgated a regulation to ensure doctor-patient confidentiality in Title X programs. These regulations remain in effect unchanged. See 42 C.F.R. § 59.11 (1982).41 Congress was fully aware of this consistent administrative practice and in particular recognized the critical role played by the assurance of confidentiality in attracting adolescents to the clinics. For example, the Senate report accompanying the 1977 reauthorization of Title X expressly acknowledged that teenagers more readily seek family planning services at Title X facilities precisely because of the policy of patient confidentiality:
[T]he Committee believes HEW must not overlook the preference of many individuals, particularly the teenage target group, for family planning clinics as the initial entry point to family planning informa[346] tion and services. This preference is due partially to the greater degree of teenage confidence in the confidentiality which can be assured by a family planning clinic and in the proficiency of the family planning services provided in a clinic specializing in those and related services.