United States House of Representatives v. Burwell

130 F. Supp. 3d 53, 2015 U.S. Dist. LEXIS 119712, 2015 WL 5294762
CourtDistrict Court, District of Columbia
DecidedSeptember 9, 2015
DocketCivil Action No. 2014-1967
StatusPublished
Cited by13 cases

This text of 130 F. Supp. 3d 53 (United States House of Representatives v. Burwell) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States House of Representatives v. Burwell, 130 F. Supp. 3d 53, 2015 U.S. Dist. LEXIS 119712, 2015 WL 5294762 (D.D.C. 2015).

Opinion

MEMORANDUM OPINION

ROSEMARY M. COLLYER, United States District Judge

Article I of the United States Constitution established the Congress, which comprises a House of Representatives and a Senate. U.S. Const, art. I, § 1. Only these two bodies, acting together, can pass laws — including the laws necessary to spend public money. In-this respect, Article I is very clear: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law — ” U.S. Const, art. I, § 9, cl. 7.

Through this lawsuit, the House of Representatives complains’ that Sylvia Burwell, the Secretary of Health and Human Services, Jacob Lew, the Secretary of the Treasury, and their respective departments (collectively the Secretaries) have spent billions of unappropriated dollars to support the Patient Protection and Affordable Care Act. The House further alleges that Secretary Lew and Treasury have, under the guise of implementing regulations, effectively amended the Affordable Care Act’s employer mandate by delaying its effect and narrowing its scope.

The Secretaries move to dismiss, arguing that the House lacks standing- to sue. They argue that only the Executive has authority to implement the laws, and urge this Court to stay out of a quintessential^ political fight in which the House is already well armed! The House opposes, adamant that it has been injured in several concrete ways, none of which can be ameliorated through the usual political processes.

The only issue before the Court is whether the House can sue the Secretaries; the merits of this lawsuit await another day. Although no precedent dictates the outcome, the case implicates the constitutionality of another Branch’s actions and thus merits an “especially rigorous” standing analysis. Ariz. State Legislature v. Ariz. Indep. Redistricting Comm’n, — U.S. —, 135 S.Ct. 2652, 2665 n. 12, 192 L.Ed.2d 704 (2015). The House sues, as an institutional plaintiff, to preserve' its power of the purse and to maintain constitutional equilibrium between the Executive *58 and the Legislature. If its non-appropriation claims have merit, which the Secretaries deny, the House has been injured in a concrete and particular way that is traceable to the Secretaries and remediable in court. The Court concludes that the House has standing to pursue those constitutional claims.

In contrast, the House’s claims that Secretary Lew improperly amended the Affordable Care Act concern only the implementation of a statute, not adherence to any specific constitutional requirement. The House does not have standing to pursue those claims. The Secretaries’ motion to dismiss will be denied as to the former and granted as to the latter.

I. FACTS

Some background is necessary on the appropriations process under our Constitution, the workings of the statute at issue, and how this case came about. The facts alleged • in the House’s complaint must be taken as-true in this procedural posture. Baird v. Gotbaum, 792 F.3d 166, 169 n. 2 (D.C.Cir.2015).

A, Constitutional Overview

Congress passes all federal laws in this country. U.S. Const, art. I, § 1 (“All legislative Powers herein granted shall be vested in a Congress of the United States[.]”). That includes both laws that authorize the expenditure of public monies and laws that ultimately appropriate those monies. Authorization and appropriation by Congress are nonnegotiable prerequisites to government spending: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.... ” U.S. Const. art. I, § 9, cl. 7; see also United States v. MacCollom, 426 U.S. 317, 321, 96 S.Ct. 2086, 48 L.Ed.2d 666 (1976) (“The established rule is that the expenditure of public funds is proper only when authorized by Congress, not that'public funds may be expended unless prohibited by Congress.”). The distinction between authorizing legislation and appropriating legislation is relevant here and bears, some discussion.

Authorizing legislation establishes or continues the operation' of a federal program or agency, either indefinitely or for a specific period. ’ GAO Glossary at 15. 1 Such an authorization may be part of an agency or program’s organic legislation, or it may be' entirely separate. Id. No money can be appropriated until an agency or program is authorized, although authorization may sometimes be inferred from an appropriation itself. Id.

Appropriation legislation “provides legal authority for federal agencies to incur obligations and to make payments out of the Treasury for specified purposes.” Id. at 13. Appropriations legislation has “the limited, and. specific purpose of providing funds for authorized programs.” Andrus v. Sierra Club, 442 U.S. 347, 361, 99 S.Ct. 2335, 60 L.Ed.2d 943 *59 (1979) (quoting TVA v. Hill, 437 U.S. 153, 190, 98 S.Ct. 2279, 57 L.Ed.2d 117 (1978)). An appropriation must be expressly .stated; it cannot be inferred or implied. 31 U.S.C. § 1301(d). It is well understood that the “a direction to pay without a designation of the source of funds is’ not an appropriation.” U.S. Government, Accounting Office, GAO-04-261SP, Pfincipies of Federal Appropriations Law (Vol.1) 2-17 (3d ed. 2004) (GAO Principles ). The inverse is also true: the designation of a source, without a specific direction to pay, is not an appropriation. Id. Both are required. See Nevada, 400 F.3d at 13-14. An appropriation act, “like any other statute, [must be] passed by 'both Houses of Congress and either signed by the President or enacted over a presidential veto.” GAO Principles at 2-45 (citing Friends of the Earth v. Armstrong, 485 F.2d 1, 9 (10th Cir.1973); Envirocare of Utah Inc. v. United States, 44 Fed.Cl. 474, 482(1999)).

Appropriations come in many forms. A “permanent” or “continuing”, appropriation, once enacted, makes funds available indefinitely for' their specified purpose; no further action is needed from Congress. Nevada, 400 F.3d at 13; GAO Principles at 2-14. 2 A “current appropriation,” by contrast, allows an agency to obligate funds only in the year or years for which they are appropriated. GAO Prin: ciples at 2-14. Current appropriations often give a particular agency, program or function its spending cap and' thus constrain what that agency, program, or function may do in the relevant year(s). Most current appropriations are adopted on an annual basis and must be re-authorized in each fiseal year.

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130 F. Supp. 3d 53, 2015 U.S. Dist. LEXIS 119712, 2015 WL 5294762, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-house-of-representatives-v-burwell-dcd-2015.