State of Texas v. USA

809 F.3d 134, 2015 WL 6873190
Court of Appeals for the Fifth Circuit·Decided November 25, 2015·No. 15-40238·Published·Cited by 271 cases

Opinions

JERRY E. SMITH, Circuit Judge:

The United States1 appeals a preliminary injunction, pending trial, forbidding implementation of the Deferred Action for Parents of Americans -and Lawful Permanent Residents program (“DAPA”). Twenty-six states (the “states”2) challenged DAPA under the Administrative Procedure Act (“APA”) and the Take Care Clause of the Constitution;3 in an impressive and thorough Memorandum Opinion and Order issued February 16, 2015, the district court enjoined the program on the ground that the states are likely to succeed on their claim that DAPA is subject to the APA’s procedural requirements. Texas v. United States, 86 F.Supp.3d 591, 677 (S.D.Tex.2015).4

The government appealed and moved to stay the injunction pending resolution of the merits. After extensive briefing and more than two hours of oral argument, a motions panel denied the stay after determining that the appeal was unlikely to succeed on its merits. Texas v. United States, 787 F.3d 733, 743 (5th Cir.2015). Reviewing the district court’s order for abuse of discretion, we affirm the preliminary injunction because the states have standing; they have established a substantial likelihood of success on the merits of their procedural and substantive APA claims; and they have satisfied the other elements required for an injunction.5

I.

A.

In June 2012, the Department of Homeland Security (“DHS”) implemented the -Deferred Action for Childhood Arrivals program (“DACA”).6 In the DACA Memo [147]*147to agency heads, the DHS Secretary “set[ ] forth how, in the exercise of ... prosecuto-rial discretion, [DHS] should enforce the Nation’s immigration laws against certain young people” and listed five “criteria [that] should be satisfied before an individual is considered for an exercise of prose-cutorial discretion.”7 The Secretary further instructed that “[n]o individual should receive deferred action ... unless they [sic] first pass a background check and requests for relief ... are to be decided on a case by case basis.”8 Although stating that “[f]or individuals who are granted deferred action ..., [U.S. Citizenship and Immigration Services (‘USCIS’) ] shall accept applications to determine whether these individuals qualify for work authorization,” the DACA Memo purported to “confer[] no substantive right, immigration status or pathway to citizenship.”9 At least 1.2 million persons qualify for DACA, and approximately 636,000 applications were approved through 2014. Dist. Ct. Op., 86 F.Supp.3d at 609.

In November 2014, by what is termed the “DAPA Memo,” DHS expanded DACA by making millions more persons eligible for the program10 and extending “[t]he period for which DACA and the accompanying employment authorization is granted ... to three-year increments, rather than the current two-year increments.”11 The Secretary also “directed] USCIS to establish a process, similar to DACA,” known as DAPA, which applies to “individuals who ... have, [as of November 20, 2014], a son or daughter who is a U.S. citizen or lawful permanent resident” and meet five additional criteria.12 The Secretary stated that, although [148]*148“[deferred action does not confer any form of legal status in this country, much less citizenship[,] it [does] mean[ ] that, for a specified period of time, an individual is permitted to be lawfully present in the United States.”13 Of the approximately 11.3 million illegal aliens14 in the United States, 4.3 million would be eligible for lawful presence pursuant to DAPA. Dist. Ct. Op., 86 F.Supp.3d at 612 n. 11, 670.

“Lawful presence” is not an enforceable right to remain in the United States and can be revoked at any time, but that classification nevertheless has significant legal consequences. Unlawfully present aliens are generally not eligible to receive federal public benefits, see 8 U.S.C. § 1611, or state and local public benefits unless the state, otherwise provides, see 8 U.S.C. § 1621.15 But as the government admits in its opening brief, persons granted lawful presence pursuant to DAPA are no longer “bar[red] ... from receiving social security retirement benefits, social security disability benefits, or health insurance under Part A of the Medicare program.”16 That follows from § 1611(b)(2) — (3), which provides that the exclusion of benefits in § 1611(a) “shall not apply to any benefits] payable under title[s] II [and XVIII] of the Social Security Act ... to an alien who is lawfully present in the United States as determined by the Attorney General....” (emphasis added). A lawfully present alien is still required to satisfy independent qualification criteria before receiving those benefits, but the grant of lawful presence removes the categorical b.ar and [149]*149thereby makes otherwise ineligible persons eligible to qualify.

“Each person who applies for deferred action pursuant to the [DAPA] criteria ... shall also be eligible to apply for work authorization for the [renewable three-year] period of deferred action.” DAPA Memo at 4. The United States concedes that “[a]n alien with work authorization may obtain a Social Security Number,” “accrue quarters of covered employment,” and “correct wage records to add prior covered employment within approximately three years of the year in which the wages were earned or in limited circumstances thereafter.”17 The district court determined — and the government does not dispute — “that DAPA recipients would be eligible for earned income tax credits once they received a Social Security number.”18

As for state benefits, although “[a] State may provide that an alien who is not lawfully present in the United States is eligible for any State or local public benefit for which such alien would otherwise be ineligible under subsection (a),” § 1621(d), Texas has chosen not to issue driver’s licenses to unlawfully present aliens.19 Texas maintains that documentation confirming lawful presence pursuant to DAPA would allow otherwise ineligible aliens to become eligible for state-subsidized driver’s licenses. Likewise, certain unemployment compensation “[b]enefits are not payable based on services performed by an alien unless the alien ... .was lawfully present for purposes of performing the services....”20 Texas contends that DAPA recipients would also become eligible for unemployment insurance.

B.

The states sued to prevent DAPA’s'im-plementation on three grounds. First, they asserted that DAPA violated the procedural requirements of the APA as a substantive rule that did not undergo the requisite notice-and-comment rulemaking. See 5 U.S.C. § 553. Second, the states claimed that DHS lacked the authority to implement the program even if it followed the correct rulemaking process, such that DAPA was substantively unlawful under the APA. See 5 U.S.C.

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State of Texas v. USA, 809 F.3d 134, 2015 WL 6873190 (5th Cir. 2015).

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