Ramah Navajo School Board, Inc. v. Babbitt

87 F.3d 1338, 318 U.S. App. D.C. 329, 35 Fed. R. Serv. 3d 306, 1996 U.S. App. LEXIS 15760
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 2, 1996
DocketNos. 95-5334, 95-5348
StatusPublished
Cited by11 cases

This text of 87 F.3d 1338 (Ramah Navajo School Board, Inc. v. Babbitt) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ramah Navajo School Board, Inc. v. Babbitt, 87 F.3d 1338, 318 U.S. App. D.C. 329, 35 Fed. R. Serv. 3d 306, 1996 U.S. App. LEXIS 15760 (D.C. Cir. 1996).

Opinions

Opinion for the Court filed by Circuit Judge WALD.

Dissenting opinion filed by Circuit Judge SILBERMAN.

WALD, Circuit Judge:

Plaintiffs Ramah Navajo School Board, Inc. (“Ramah”) and the Puyallup Tribe of Indians (“Puyallup”) have challenged a plan initiated by the Secretary of the Interior for disbursing fiscal year 1995 contract support funds appropriated by Congress for distribution to Native American Tribes as required by the Indian Self-Determination Act, 25 U.S.C. § 450 et seq. (“ISDA” or “Act”). The appellants moved to enjoin the Secretary from distributing the funds in accordance with the new plan, arguing that the allocation would violate the ISDA.

On September 27, 1995, the district court denied Ramah’s motion for a preliminary injunction, Ramah Navajo Sch. Bd., Inc. v. Babbitt, No. 95cv1770 (D.D.C. Sept. 27, 1995) (“Ramah”), Joint Appendix (“J.A.”) 12, and two days later it denied a nearly-identical motion filed by Puyallup, Puyallup Tribe of Indians v. Babbitt, No. 95cv1848 (Sept. 29, 1995) (“Puyallup”), J.A. 21. In ruling against the Tribes, the district court found that the Secretary’s allocation decision, which had been published as a Notice in the Federal Register, was judicially unreviewable, and that the plaintiffs had therefore failed to demonstrate a likelihood of success on the merits. Ramah, at 3-5, J.A. 14-16; Puyallup, at 2 (citing Ramah), J.A. 22. We then granted the plaintiffs’ emergency motions for an administrative stay to preserve approximately $410,000 in fiscal year 1995 funds which would otherwise have lapsed to the Treasury during pendency of this appeal. Ramah Navajo Sch. Bd., Inc. v. Babbitt, No. 95cv1770, Order (Sept. 29, 1995), J.A. 23A; Puyallup Tribe of Indians v. Babbitt, No. 95cv1848, Order (Oct. 4, 1995), J.A. 23B.

[1341]*1341Because we find that the ISDA provides sufficient law to apply in reviewing the Secretary’s actions, and that the Secretary exceeded his authority under the statute, we hold that the district court erred in denying the Tribes’ motions for a preliminary injunction.1 Accordingly, we reverse the orders denying the injunction, and remand to the district court for further proceedings consistent with this opinion.2

I.Background

A. The Statute

The ISDA directs the Secretary, upon the request of an Indian Tribe, to turn over to that Tribe the direct operation of its federal Indian Programs. ISDA § 450f (a)(1). Once a Tribe requests control of its programs, the Secretary and the Tribe enter into a “self-determination contract,” which the statute specifies must incorporate the provisions of a mandatory “model contract” included in the text of the ISDA. Id. § 450Z(a), (c). The Act requires the Secretary to provide to the Tribe the amount of funding that would have been appropriated for the federal government to operate the programs if they had not been turned over to the Tribe. Id. § 450j-1(a)(1). In addition, the Act requires the Secretary to allocate certain Contract Support Funds (“CSF”) to cover the full administrative costs the Tribe will incur — and which, absent the self-determination contract, the federal government would incur — in connection with the operation of these programs. Id. § 450j — 1(a)(2). This case involves the Secretary’s distribution of these CSF, which the statute refers to as an entitlement of the contracting Tribes. See id.§ 450j-l(g) (“[T]he Secretary shall add to the contract the full amount of funds to which the contractor [the Tribe] is entitled under subsection (a).” (emphasis added)).

1. Calculating the CSF

The amount of CSF due to a particular Tribe for each fiscal year is determined through an annual negotiation process during which the Tribe and the Office of the Inspector General (“OIG”) of the Department of the Interior determine the total amount of funding the Tribe will receive for the year (the Tribe’s base funding) and the size of the contract support pool needed to support that base (the support pool). The ratio of the support pool to the total base provides the “indirect cost rate,” which dictates the amount of CSF the Tribe is entitled to receive for the year from each funding agency that contributes to the program base.3 In a year in which Congress appropriates sufficient money to cover the Secretary’s CSF obligations, each Tribe is entitled to receive the full amount of its CSF funding.

2. Availability of Funds

Although Congress drafted the CSF funding provisions in mandatory terms (“There shall be added ... contract support costs which shall consist of ... [and] shall include ...” ISDA § 450j-l(a)(2), (3) (emphasis add[1342]*1342ed)), and forbade the Secretary to reduce the amount of funding for virtually any reason except a reduction in appropriations or tribal authorization, see id. § 450j — 1(b)(2), the Act also contains a proviso that reads:

Notwithstanding any other provision in [the Act], the provision of funds under [the Act] is subject to the availability of appropriations and the Secretary is not required to reduce funding for programs, projects, or activities serving a tribe to make funds available to another tribe or tribal organization under [the ISDA].

Id. § 450j-l(b). It is this last provision that formed the basis for the district court’s determination that the Secretary’s allocation decisions, in the event of an appropriations shortfall, were committed to agency discretion and not subject to judicial review.

B. The 1995 Appropriations Shortfall and the Secretary’s New Policy

In 1995, the Bureau of Indian Affairs (“BIA”) identified a projected need of $105 million for the year to fund contract support needs for all eligible Tribes. In the Appropriations Act of 1995, however, Congress directed that the Secretary was not to exceed $95,639,978 for this purpose, thus creating the funding shortfall. Interior Appropriations Act of 1995, Pub.L. No. 103-332 (Title I), 108 Stat. 2499, 2511 (Sept. 30,1994) (“1995 Act”) (Appellants’ Addendum (“A.A.”) 43).

Faced with the congressional cap on CSF appropriations, and therefore unable to provide all of the Tribes with their full CSF entitlement, the Secretary published a Notice in the Federal Register in November, 1994, announcing a new BIA policy for fund allocation. The announcement stated that any Tribe failing to submit a proposal for its 1995 indirect cost rate (the rate at which its program base should be funded for overhead costs) by June 30,1995, would not be eligible for full funding. Rather, the Tribe would be “eligible for 50 percent of the required contract support,” based on its 1994, rather than 1995, rate.4 Any Tribe which submitted its proposal on time (by June 30) would receive full funding if, once the CSF had been reduced for all of the late Tribes, the appropriation proved sufficient to cover the full cost of the others. If the appropriation still proved insufficient, the money owed to the Tribes which filed timely proposals would be subject to a pro rata reduction.

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Bluebook (online)
87 F.3d 1338, 318 U.S. App. D.C. 329, 35 Fed. R. Serv. 3d 306, 1996 U.S. App. LEXIS 15760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramah-navajo-school-board-inc-v-babbitt-cadc-1996.