United States v. Vaello Madero

596 U.S. 159, 142 S. Ct. 1539
CourtSupreme Court of the United States
DecidedApril 21, 2022
Docket20-303
StatusPublished
Cited by24 cases

This text of 596 U.S. 159 (United States v. Vaello Madero) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Vaello Madero, 596 U.S. 159, 142 S. Ct. 1539 (2022).

Opinion

(Slip Opinion) OCTOBER TERM, 2021 1

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

UNITED STATES v. VAELLO MADERO

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT

No. 20–303. Argued November 9, 2021—Decided April 21, 2022 The Territory Clause of the United States Constitution—which states that Congress may “make all needful Rules and Regulations respecting the Territory . . . belonging to the United States,” Art. IV, §3, cl. 2— affords Congress broad authority to legislate with respect to the U. S. Territories. In exercising that authority, Congress has long main- tained different federal tax and benefits programs for residents of the Territories than for residents of the 50 States. For example, residents of Puerto Rico are typically exempt from most federal income, gift, es- tate, and excise taxes. See 48 U. S. C. §734; see, e.g., 26 U. S. C. §§933, 2209, 4081–4084. But just as not every federal tax extends to residents of Puerto Rico, so too not every federal benefits program extends to residents of Puerto Rico. One such benefits program is Supplemental Security Income (SSI), which by statute applies only to residents of the 50 States and the District of Columbia. 42 U. S. C. §1382c(a)(1)(B)(i). The question presented is whether the equal-protection component of the Fifth Amendment’s Due Process Clause requires Congress to make Supplemental Security Income benefits available to residents of Puerto Rico to the same extent that Congress makes those benefits available to residents of the States. Here, respondent Jose Luis Vaello Madero received SSI benefits while he was a resident of New York. He then moved to Puerto Rico, where he was no longer eligible to receive those benefits. Unaware of Vaello Madero’s new residence, the Government continued to pay him SSI benefits. The Government eventually sued Vaello Madero to re- cover those errant payments, which totaled more than $28,000. In re- sponse, Vaello Madero invoked the Constitution, arguing that Con- gress’s exclusion of residents of Puerto Rico from the SSI program violated the equal-protection component of the Fifth Amendment’s 2 UNITED STATES v. VAELLO MADERO

Due Process Clause. The District Court and the Court of Appeals agreed. Held: The Constitution does not require Congress to extend SSI benefits to residents of Puerto Rico. In Califano v. Torres, 435 U. S. 1, and Harris v. Rosario, 446 U. S. 651, the Court applied the deferential ra- tional-basis test to uphold Congress’s decision not to extend certain federal benefits to Puerto Rico, noting that because Congress chose to treat residents of Puerto Rico differently from residents of the States for purposes of tax laws, it could do the same for benefits programs. Those two precedents dictate the result here. Congress’s decision to exempt Puerto Rico’s residents from most federal income, gift, estate, and excise taxes supplies a rational basis for likewise distinguishing residents of Puerto Rico from residents of the States for purposes of the SSI benefits program. Vaello Madero’s contrary position would usher in potentially far-reaching consequences, with serious implica- tions for the Puerto Rican people and the Puerto Rican economy. The Constitution does not require that extreme outcome. Pp. 4–6. 956 F. 3d 12, reversed.

KAVANAUGH, J., delivered the opinion of the Court, in which ROBERTS, C. J., and THOMAS, BREYER, ALITO, KAGAN, GORSUCH, and BARRETT, JJ., joined. THOMAS, J., and GORSUCH, J., filed concurring opinions. SO- TOMAYOR, J., filed a dissenting opinion. Cite as: 596 U. S. ____ (2022) 1

Opinion of the Court

NOTICE: This opinion is subject to formal revision before publication in the preliminary print of the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Wash- ington, D. C. 20543, of any typographical or other formal errors, in order that corrections may be made before the preliminary print goes to press.

SUPREME COURT OF THE UNITED STATES _________________

No. 20–303 _________________

UNITED STATES, PETITIONER v. JOSE LUIS VAELLO MADERO ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT [April 21, 2022]

JUSTICE KAVANAUGH delivered the opinion of the Court. The United States includes five Territories: American Sa- moa, Guam, the Northern Mariana Islands, the U. S. Virgin Islands, and Puerto Rico. This case involves Puerto Rico, which became a U. S. Territory in 1898 in the wake of the Spanish-American War. For various historical and policy reasons, including local autonomy, Congress has not required residents of Puerto Rico to pay most federal income, gift, estate, and excise taxes. Congress has likewise not extended certain federal benefits programs to residents of Puerto Rico. The question presented is whether the equal-protection component of the Fifth Amendment’s Due Process Clause requires Congress to make Supplemental Security Income benefits available to residents of Puerto Rico to the same extent that Congress makes those benefits available to res- idents of the States. In light of the text of the Constitution, longstanding historical practice, and this Court’s prece- dents, the answer is no. 2 UNITED STATES v. VAELLO MADERO

* * * The Territory Clause of the Constitution states that Con- gress may “make all needful Rules and Regulations respect- ing the Territory . . . belonging to the United States.” Art. IV, §3, cl. 2. The text of the Clause affords Congress broad authority to legislate with respect to the U. S. Territories. Exercising that authority, Congress sometimes legislates differently with respect to the Territories, including Puerto Rico, than it does with respect to the States. That longstanding congressional practice reflects both national and local considerations. In tackling the many facets of ter- ritorial governance, Congress must make numerous policy judgments that account not only for the needs of the United States as a whole but also for (among other things) the unique histories, economic conditions, social circumstances, independent policy views, and relative autonomy of the in- dividual Territories. Of relevance here, Congress must decide how to structure federal taxes and benefits for residents of the Territories. In doing so, Congress has long maintained federal tax and benefits programs for residents of Puerto Rico and the other Territories that differ in some respects from the federal tax and benefits programs for residents of the 50 States. On the tax side, for example, residents of Puerto Rico are typically exempt from most federal income, gift, estate, and excise taxes. See 39 Stat. 954, as amended, 48 U. S. C. §734; see, e.g., 26 U. S. C. §§933, 2209, 4081–4084. At the same time, residents of Puerto Rico generally pay Social Se- curity, Medicare, and unemployment taxes. 26 U. S. C.

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596 U.S. 159, 142 S. Ct. 1539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-vaello-madero-scotus-2022.