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ID: AUG 07'97 3:13 No. 003 P.02 Aprel Fortance ejuu: 07 WED FAA 20: 225 3077 FANIGRATION 2 CLAIMS - MEMBERS MONTH MEMBERS ONN CONVERS. JR_MICMIGAN *(MRY) NTUR. ILLINOIS (NAMMAN BARNET ISANS MASSACHUSETTS ONE NUNDRED ПГТН CONGRESS CHARGE COMMER. NEW TOME TOWARD REAMAN. CALIFORNIA ... MICOLLUM FLORIDA RICK BOUCHER. VIRGINIA CTEAS PENNSYLVANIA - come. MORTH CARCUMA LAMARS 6MITH TEXAS Congress of the United States more MOBERT RCOTT. VIRGINIA MEDICAL wan. NORTH CARDLINA Scmill, 30' INEGRIN CALMONIA DALLEOL- CALIFORNIA BOB SOUTH CAROLINA thouse of Representations SATILA DERSON CIG. TERAS CHARLEST CANADE, ILEMIDA MAXINE WATERY. CALIFORNIA MARTIN T.MEEMAN. MARKACHUSETTS 100 00001 sieve surfe INTERNA COMMITTEE ON THE JUDICIARY MILIAM D DECAMONT MARRACRUSETTS ans(s) HONOR SOUNT each CALIFORNIA STRUINA ROTHMAN JEASEY 10 BATAN! TENNESSEE DEVERMANOT DWO 2130 HATHUMA MOUSE CFFICE BUILDING 400 DAEP. GEORGIA WELIAMS. JENEIRS. TENNESSEE accouses WASHINGTON OC 20515-6216 (0-10) PEASE INDIANA POSTEIN MOONEY " CHRISTOPHER 0 CANNOR uran (202) 225-3951 MINDAITY STATE DIRECTOR CHIEF -Crulnel COUNSEL Affiliation JOSE will Elena STATE COUNSES July 29, 1997 CC Cynshia Ken Appel The Honorable Jance Reno Attorney General U.S. Department of Justice Washington, D.C. 20530 Dear General Reno: I was very dismayed and disappointed after having read the Office of Legal Counsel's memorandum that was presented to me as justification for your interpretation of the term "means-tested public benefit" as will bc used in future affidavits of support exccuted by sponsors of intending immigrants.' On July 11, Justice Department officials including Deputy Assistant Attorney General Randolph D. Moss told me that the term would be interpreted as only applying to benefits provided through mandatory spending programs, i.e., entitlement programs. I was later given the memorandum, written by Mr. Moss and Acting Assistant Attorney General Dawn Johnsen, that I understand was"adoried by this Administration as the basis for its definition of "means-tested public benefit." I can only conclude that the Administration's analysis was constructed to fit a predetermined result - that is, to minimize the scope of the term. Section 551 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA) requires that the new affidavit of support you are to draft is to be legally enforceable against the sponsor by any entity "that provides any means-tested public benefit." By interpreting this term to apply to only mandatory spending programs, you are relieving the sponsor of all responsibility for benefits consumed by the sponsored immigrant that are provided through discretionary programs. This is terrific blow not only to IIRIRA but to the American taxpayer as well, made doubly powerful by the fact that the interpretation is unfounded. The Administration justifies its conclusion solely because the definition of the term "Federal means-tested public benefit" was removed from S. 1956, last year's Senate version of welfare reform legislation, on the Senate floor on a "Byrd rule" point of order raised by Senator : Memorandum for Harriet S. Rabb General Counsel, Department of Health and Human Services (Jan. 14, 1997)(hereinafter cited as "Memo"). ID: AUG 07'97 3:14 No 003 P.03 IMMIGRATION & CLAIMS 6,003 07/30/97 "ED 0.5 to EAR 202 225 367: 2. Exon.² The definition stated that: [T]he term "Federal means-tested public benefit" means a public benefit (including cash, medical, housing. and food assistance and social services) of the Federal Government in which the eligibility of an individual. household, or family eligibility unit for benefits, or the amount of such benefits, or both are determined on the basis of income, resources, or financial need of the individual, household, or unit.³ The Byrd rule" allows a Senutor to raise a point of order against "extrancous" provisions during Senate consideration of a reconciliation bill. The rule describes six types of extraneous provisions. including provisions that do not produce a change in outlays or revenues and provisions that are not within the jurisdiction of the committee that submitted them for inclusion in the reconciliation measure. Senator Exon objected to many provisions in his point of order. His rationale for objecting to the definition of "Federal means-tested public benefit" was that "Aspects are not in Finance Committee's jurisdiction." No Senator made a motion to waive the Byrd rule (which would have required 00 voics) in this instance. Ms. Johnsen a Ms. Moss conclude that the definition was struck because "it reached discretionary spending programs" (having no direct budgetary impact, as mandatory entitlement programs would).6 Therefore, the "legislative record provides strong evidence that the phrase 'federal means-tested public benefits,' as used in [PRWORA], should be construed to reach only mandatory (and not discretionary) spending programs." Thus, the term "means-tested public benefit" as it applies to the new affidavit of support should bc so construed, or so I was told on July 11. Not only is this argument wrong-headed, it is simply perplexing. Ms. Johnsen's and Mr. I Cong. Rec. S3423 (July 22, 1996). 1 S. 1956, 104th Cong., 2d Sess. sec. 2403(c)(1) (1996). 4 2 U.S.C. sec. 644. I Cong. Rec. S8424 (July 22, 1996). 6 Memo at 2. "The Parliamentarian upheld Senator Exon's Byrd rulc objection on the grounds that the provision was outside the Finance Committee's jurisdiction and that, to the extent the definition er compassed discretionary programs, its impact on the budget was 'merely incidental. Id. At 6. , Id At 7. ID: AUG 07'97 3:14 No.003 P.04 vi 30.97 "1.0 US 10 FAA 202 225 0672 IMMIGRATION a CLAIMS 3 Moss' memorandum presents the views of the Office of Legal Counsel "regarding a construction of the scope of the phrase 'federal means tested public benefit[s]' contained in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 However. the only term relevant to the new affidavit of support is "means-tested public benefit", and this term, along with all requirements for the new affidavit of support. is contained in section SSI of JIRIRA.'. And IIRIRA was neve part of a reconciliation bill! The interpretation of a term justified solely by the application of the Byrd rule to the legislation the term is contained in does not transfer to a similar term in another piece of legislation not subject to the Byrd rule in the first place. The memorandum provides no justification at all for an interpretation of "means-tested public benefit" as contained in IIRIRA. Even if we were to examine the meaning of the term "Federal means-tested public benefit" as it exists in PRWORA, there is no legitimate rationale for concluding that it docs not encompass benefits provided by discretionary programs simply because its definition was "Byrded-out." The Byrd rule 15 merely a procedural device, an internal Senate rule designed to protect the Senate's deliberative process by excluding from consideration under expedited reconciliation procedures extraneous provisions added by the House. It was never intended to play any role in the executive branch's interpretation of a statute. This is not just my opinion, this is how the Senate Parliamentarian's Office views the Byrd rule. By all means ask Senate Parliamentarian Bob Dove (202-224-6:28) I wish Ms. Johnson and Mr. Moss would have done so before writing their memoran:lum. If the Administration's reliance on the Byrd rule for purposes of statutory interpretation was improper, how then should we interpret "means-tested public benefit" or "Federal means- tested public benefit"? The Supreme Court tells us that: As in all cases involving statutory construction, "our starting point must be the language employed by Congress," and we assume "that the legislative purpose is expressed by the ordinary meaning of the words used." Thus, "[a]bsent a clearly expressed legislative intertion to the contrary, that language must ordinarily be regarded as conclusive."" a Id. at 1. 9 While PRWORA also contained provisions setting forth the requirements for a new affidavit of support (ser:, 423), superseding requirements were contained in the later-enacted IIRIRA. "American Tobacco Co. Y. Patterson. 456 U.S. 63, 68 (1982) (citations omitted). ID: AUG 07'97 3:15 No. 003 P.05 DIMIGRATION 1. CLAIMS 0005 07/30/97 "ED 05:11 FAX 202 225 3672 4 Consistent with this precedent, the language of PRWORA clearly indicates that the term "Federal means-tested public benefit" includes benefits provided through discretionary programs, and there is no "clearly expressed legislative intention to the contrary." "Federal mean s-tested public benefit" is an undefined term in PRWORA. The Supreme Court has held that when a term used in a statute is not defined in that statute, "we construe [thc] term in accordance with its ordinary or natural meaning." Where would one find the ordinary meaning of a term? "A dictionary is an appropriate source for gleaning that 'ordinary meaning Webster's Third New International Dictionary of the English Language Unabridged defines "means test" is "any examination of the financial state of a person as a condition precedent 10 receiving social insurance, public assistance benefits, or other payments from public funds." The Random House Dictionary of the English Language defines "means test" as "any investigation into the financial position of a person applying for aid from public funds." There is no indication in these definitions that means-tested benefits are limited to those provided by "mandatory" benefit programs. Ms. Johnsen and Mr. Moss argue that "the proposition that combining plain terms necessarily results in an cqually plain phrase is not at all sclf-evident." However, 1 find it inconceivable that "Federal means-tested public benefit" could mean anything other than a Federal public benefit that is means-tested. An additional indication of the proper definition of the term "Federal means-tested public benefit" in section 403 of PRWORA is provided by the fact that the term is preceded by the word "any." Webster's New World Dictionary defines "any" to mean "without limit" and "every". The plain meaning of the phrase "any Federal means-tested public benefit" -- every Federal means-tested public benefit without limit .. is directly at odds with the Administration's reading of the phrase. "Any Federal means-tested public benefit" clearly canno: mean "a means-tested benefit except if it is provided through a discretionary program". The structure of PRWORA provides additional evidence that "Federal means-tested public benefit" must b:: read to include benefits provided through discretionary programs. Section 403 of PRWORA includes the term "Federal means-tested public benefit" in subsection (a) and then sets out 3 list of exceptions in subsection (c)(2) .. the "limitation" as to the receipt of Federal means-tested public benefits by "qualified". aliens in (a) does not apply to the "[a]ssistance and benefits" listed in (c)(2). "EDICY Meyer, 114 S.Ct. 996. 1001 (1994). 1: Koyo Sciko Co Ltd V U.S. 36 F.3d 1565, 1571 n.9 (Fed. Cir. 1994). 13 Memo at 9 (footnote and citation omitted). ID: AUG 07'97 3:15 No 003 P.06 08/01/97 FKI 07 10 37 WED 05 11 FAX 202 225 3672 IMMIGRATION & CLAIMS 41000 S Conspicuously absent from (c)(2)'s list of exceptions is "benefits provided under a discretionary program." The Supreme Court has ruled that "[w]here Congress explicitly enumerates certain exceptions to a general prohibition, additional exceptions are not to be implied, in the absence of evidence of & contrary legislative intent."" Since, as will be shown shortly. there was no contrary legislative intent. "Federal means-tested public benefit" in section 403(a) should not be read as containing an exception for "discretionary" benefits not found in section 403(c)(2). Also, the list o.: exceptions in subsection (c)(2) itself includes discretionary programs! As Ms. Johnsen and Mr. Moss admit in their memorandum, 3 "textual argument" can be made that "[t]he inclusion of some discretionary programs in this list of exceptions would be unnecessary unless the term itself included such programs." But this is more than an "argument", it is a cannon of statutory construction. As the Eleventh Circuit has stated, "[i]n a case of a true statutory exception an exception exists only to exempt something which would otherwise be covered." The statute is thus clear that the definition of "federal means-tested public benefits" includes benefits provided through discretionary programs." All there is left to do is to determine whether there was "clear congressional intent" that would have us set aside the plain meaning of the statute. As Ms. Johnsen and Mr. Moss admit in their memorandum, the conference committee's report on PRWORA states that "[i]t is the intent of conferees that [the deleted] definition be presumed to bc in place for purposes of this title."¹⁸ The deleted definition was the one quoted at the beginning of this letter that made no distinction between "mandatory" and "discretionary" benefits. So much for contrary legislative intent. The memorandum states that "{w]e believe that this statement in the conferees' report 14 U.S. Y. Smith, 111 S.Ct. 1180. 1185 (1991). 13 Memo at 10. 16 Florida Gulf Coast Building and Construction Trades Council V. N.L.R.B., 796 F.2d 1328, 1341 (11th Cir. 1986). 17 Ms. Johnsen and Mr. Moss explain away this problem by stating that "[t]he categorization of particular programs as mandatory or discretionary is not at all obvious, and it is likely that many, if not nost, members [of Congress] did not know precisely which programs fell into which category." Memo at 11. This argument shows a deplorable contempt for Congress that is unfortunately also exhibited elsewhere in the memorandum. 18 H. Conf. Rep. No. 104-725, 104th Cong., 2d Sess. 381 (1996), reprinted in 1996 U.S.C.C.A.N. 2649, 2770. ID: AUG 07'97 3:16 No. 003 P.07 08/01/97 4007 07/10/97 "ED ON 11 HAV 202 225 3672 IMMIGRATION A CLAIMS 6 cannot he taken as controlling." Even if we were to accept this argument that the conferees' statement is not "controlling" (which I must object to as showing altogether too little respect for Congress on the part of the Justice Department), the statement must still be agreed to trump other proffered legislative history. It is a settled matter of statutory construction that. as the Seventh Circuit states, a conference report "is the most persuasive evidence of congressional intent besides the statute itself."20 Why? Because "the conference report represents the final statement of terms agreed to by both houses "21 There can surely bc no "clearly expressed legislative intent" that is contradicted by the conference report itself! Thus, as the Supreme Court ruled, WE must return to the language of the statute (even if other legislative history could be argued to provide some evidence of a contrary meaning). As I have shown earlier. this language clearly indicates that "Federal means-tested public benefit" must be read to include benefits provided through discretionary programs. The other legislative history used by the Administration to support its interpretation of the term "Federal means-tested public benefit" is contradicted and made impotent by the language of the conference report. Even if it were not, this "other legislative history" is not properly read as excluding "discretionary" benefits. For it is mercly a recitation of the events surrounding Senator Exon's point of order involving the Byrd rule -- a procedural rule inappropriate for statutory interpretation. Even if Scnator Exon's utilization of the Byrd rule were relied upon for statutory interpretation, it would not in this case indicate that "Federal means-tested public benefit" should exclude "discretionary" benefits. If Senator Exon had wanted to limit the meaning of the term to "mandatory" programs, he should have done one of two things. One, when he raised his point of order on the basis of the Byrd rule, he should have included the phrase "any Federal means-tested public benefit" itself² in the list of violations of the Byrd rule that he sent to the Chair. Or, two, after raising his point of order to the definition, he should have offered an amendment to PRWORA adding "a benefit provided through a discretionary program" 10 the list of exceptions those "Federal means-tested public benefits" to 19 Memo at 11. 20 Resolution Inist Corporation V Gallagher, 10 F.3d 416, 421 (7th Cir. 1993). See also Northwest Forest Resource V. Glickman. 82 F.3d 825, 835 (9th Cir. 1996); Austin Y. Owens- Brockway Glass Container, Inc., 78 F.3d 875, 881 (4th Cir. 1996); RJR Nabisco, Inc. V. U.S., 955 F.2d 1457, 1462 (1)th Cir. 1992). 21 Demby V. Schweiker. 671 F.2d 507. 510 (D.C Cir. 1981), quoted in Resolution Trust Corporation at 421. " The term was contained in section 2403(a) of S. 1956. ID: AUG 07'97 3:17 No. 003 P.08 08/01/97 0003 IMMIGRATION & CLAIMS 07/30/97 "ED 08.12 FAI 201 223 3672 / which the restrictions on receipt by "qualified" aliens would not apply ?) Senator Exon climinated 3 definition of "Federal means-tested public benefit", but he left the underlying term alone. Since the underlying tenn had a clear meaning in standard English a meaning that included benefits provided through discretionary programs - -- his actions did not affect that meaning. Additionally, vie cannot attribute Senator Exon's intent in raising his Byrd rule point of order to the other members of the Senate Given that the underlying term had J clear meaning in standard English, other Scnators would have assumed that this "ordinary" meaning would still apply to the term. They could not know what Senator Exon was up to unless he informed them. This, he did not do until August 1, when on the floor of the Senate he ascribed his intent in offering his point of order to limiting the definition of "Federal means-tested public benefit" to benefits provided through mandatory programs." At the time, the Senate was considering the conference report to PRWORA - it had long since passed the versions of S. 1956 to which Senator Exon raised his Byrd rule point of order. Remember, when Senator Exon made his point of order (on July 22), he mercly indicated that, as to the definition of "Federal means-tested public benefit", "Aspects are not in Finance Committee's jurisdiction." How could any other Senator have known of Senator Exon's intent when it mattered, when he or she could have offered B motion to waive the Byrd rule? For the reasons set forth in this letter, I urge you in the strongest terms to reconsider your interpretation of "Federal means-tested public benefit" as it will be utilized in affidavits of support. The present Department of Justice interpretation is utterly lacking in merit and makes a travesty of statutory interpretation. More importantly, it prevents from being fulfilled the promise to the American taxpayer that was the Illegal Immigration and Immigrant Responsibility Act of 1996. Lamer Smith Sincerely, Lamar Smith "Chairman, Subcommittee on Immigration and Claims 2) These exceptions were found at section 2403(c)(2) of S. 1956. 24 Cong. Rec. S0400 (August 1, 1996)(statement of Senator Exon). The claim is not made until August 1 that the Senate Parliamentarian agreed that benefits provided through discretionary programs violated the Byrd rule. Id. (statement of Senator Graham). 08/26/97 13:49 5202 690 6562 DHHS/ASPE/HSP 001 FAX TRANSMITTAL DATE: TO: Diana Fortuna FAX NUMBER 456-7431 VOICE NUMBER FROM: David Nielsen FAX NUMBER VOICE NUMBER NUMBER OF PAGES, INCLUDING COVER Comments Attached are the HHS 2 SSA F.R. Notices on "means-tested" benefits 08/26/97 13:49 202 690 6562 DHHS/ASPE/HSP 002 45256 Federal Register / Vol. 62, No. 165 / Tuesday, August 26, 1997 / Notices processing the payment of health with the requirements of the Securities Dated: August 22, 1997. insurance claims by performing data Act of 1933 and the rules of the Jennifer J. Johnson, entry of customer provided information Securities and Exchange Commission, Deputy Secretary of the Board. and information relating to the cost of pursuant to § 225.28(b)(7) of the Board's (FR Doc. 97-22867 Filed 8-22-97; 3:44 pm] medical treatment, and by utilizing the Regulation Y; and in providing BILLING CODE 6210-01-P customer's database to match administrative and other services to membership and provider information investment companies, including open- to facilitate payment between the end investment companies ("mutual DEPARTMENT OF HEALTH AND provider and the insurer, and in funds"). See Bankers Trust 83 Fed. Res. HUMAN SERVICES collection of financial and other data Bull. (Order dated July 21, 1997); from hard copies and electronic images Barclays PLC, 82 Fed. Res. Bull. 158 Office of the Secretary of airline tickets that is provided to (1996); Bank of Ireland, 82 Fed. Res. customers for billing purposes, pursuant Bull. 1129 (1996). BankAmerica would Personal Responsibility and Work to § 225.28(b)(14) of the Board's engage in these activities in accordance Opportunity Reconciliation Act of 1996 Regulation Y. See, Banc One with the limitations and conditions (PRWORA); Interpretation of "Federal Corporation, 80 Fed. Res. Bull. 139 previously established by the Board by Means-Tested Public Benefit" (1994). regulation or order, with certain AGENCY: Office of the Secretary, HHS. B. Federal Reserve Bank of San exceptions relating to the proposed Francisco (Pat Marshall, Manager of ACTION: Notice with comment period. provision of advisory and Analytical Support, Consumer administrative services to mutual funds SUMMARY: This notice with comment Regulation Group) 101 Market Street, that are discussed in the notice. period interprets the term "Federal San Francisco, California 94105-1579: BankAmerica also intends to acquire means-tested public benefit[s]" as used 1. BankAmerica Corporation, San certain offshore subsidiaries, companies in Title IV of the Personal Francisco, California; to acquire all of engaged in providing services to Group Responsibility and work Opportunity the assets, and assume all of the and RS & Co. and its affiliates, and Reconciliation Act of 1996 (PRWORA), liabilities of Robertson Stephens & proprietary investments currently Pub. L. 104-193, to include only Company Group ("Group"), and owned by Group and RS & Co. Inc. mandatory spending programs of the Robertson Stephen & Company, Inc. ("RS&Co., Inc."), and thereby engage Board of Governors of the Federal Reserve Federal Government in which eligibility worldwide in underwriting and dealing System. August 20, 1997. for the programs' benefits, or the in, to a limited extent, all types of debt Jennifer J. Johnson, amount of such benefits, or both, are determined on the basis of income or and equity securities other than Deputy Secretary of the Board. resources of the eligibility unit seeking interests in open end investment [FR Doc. 97-22601 Filed 8-25-97; 8:45 am) the benefit. At HHS, the benefit companies See J.P. Morgan & Co., Inc., BILLING CODE 6210-01-F programs that fall within this definition Citicorp and Security Pacific Corp., 75 (and are not explicitly excepted from Fed. Res. Bull, 192 (1989); in underwriting and dealing in obligations FEDERAL RESERVE SYSTEM the definition by Section 403(c)) are Medicaid and Temporary Assistance for of the United States, general obligations Sunshine Act Meeting Needy Families (TANF). of states and their political subdivisions, and other obligations that state members DATES: Effective Date: This notice is AGENCY HOLDING THE MEETING: Board of banks of the Federal Reserve System effective on August 26, 1997. Governors of the Federal Reserve may be authorized to underwrite and COMMENT PERIOD: Written comments deal in under 12 U.S.C. 24 and 335, System. will be considered if we receive them at pursuant to § 225.28(b)(8) of the Board's TIME AND DATE: 11:00 a.m., Tuesday, the appropriate address, as provided in Regulation Y; in acting as investment or September 2, 1997. the ADDRESSES section below, no later financial advisor, pursuant to than 5 p.m. on October 27, 1997. PLACE: Marriner S. Eccles Federal § 225.28(b)(6) of the Board's Regulation ADDRESSES: Mail comments (1 original Reserve Board Building, C Street Y; in providing securities brokerage entrance between 20th and 21st Streets. and 3 copies) to the following address: services (including securities clearing Division of Economic Support for N.W., Washington, D.C. 20551. and securities execution services on an Families, Office of the Assistant exchange), alone and in combination STATUS: Closed. Secretary for Planning and Evaluation, with investment advisory services, and MATTERS TO BE CONSIDERED: Department of Health and Human incidental activities (including related 1. Personnel actions (appointments, Services, Room 404E, 200 Independence securities credit activities and custodial Ave., SW, Washington, DC 20201, promotions, assignments. services), pursuant to § 225.28(b)(7) of Attention: David Nielsen. reassignments, and salary actions) the Board's Regulation Y; in buying and involving individual Federal Reserve FOR FURTHER INFORMATION CONTACT: selling in the secondary market all types System employees. David Nielsen, (202) 690-7148. of securities on the order of customers Copies of comments may be inspected as a riskless principal to the extent of 2. Any items carried forward from a at the above address. Inquiries regarding engaging in a transaction in which the previously announced meeting. how a particular program is affected by company, after receiving an order to buy CONTACT PERSON FOR MORE INFORMATION: this notice should be submitted to (or sell) a security from a customer. Mr. Joseph R. Coyne, Assistant to the DHHS program staff responsible for purchases (or sells) the security for its Board: (202) 452-3204. You may call managing the program at either the own account to offset a (202) 452-3207, beginning at appropriate Regional Office, or contemporaneous sale to (or purchase approximately 5 p.m. two business days Headquarters in Washington, DC. The from) the customer, pursuant to before this meeting, for a recorded above contact should be used only to § 225.28(b)(76) of the Board's Regulation announcement of bank and bank submit general comments regarding the Y; in acting as agent for the private holding company applications policy interpretation contained in this placement of securities in accordance scheduled for the meeting. notice. 08/26/97 13:51 202 690 6562 DHHS/ASPE/HSP 003 Federal Register / Vol. 62, No. 165 / Tuesday, August 26, 1997 / Notices 45257 SUPPLEMENTARY INFORMATION: Rule objection in terms of limiting the III. Comment Period and Effective Date scope of the definition of "Federal I. Background Although HHS is soliciting public means-tested public benefit" to comment on this interpretation, we Title IV of PRWORA contains several mandatory spending programs, while believe that it is necessary to apply this references to the term "Federal means- leaving discretionary programs interpretation to HHS programs tested public benefit[s]." The most unaffected. See 142 Cong. Rec. at S9403 immediately. prior to receipt and significant of these references are found (daily ed. August 1, 1996) (statement of consideration of any comments. in Sections 403 and 421. Section 403 Senator Chafee); 142 Cong. Rec. at PRWORA was enacted in August, denies "Federal means-tested public S9400 (statements of Senators Graham, 1996, and since that time HHS has benefit[s]" to aliens who entered the Kennedy and Exon). Therefore, to the received numerous inquiries regarding United States with a qualified alien extent the definition of "Federal means- the application of the term "Federal status "on or after the date of the tested public benefit" included benefits means-tested public benefit." enactment of this Act" for 5 years provided by discretionary spending Additional delay will cause unnecessary beginning on the date of the aliens' programs, it was subject to a Byrd Rule or incorrect administrative actions by entry into the United States. Section 421 provides that new sponsor-to-alien objection. agencies or entities that administer our deeming rules apply to "any Federal П. Interpretation programs. We also believe it is possible that due to confusion about the means-tested public benefits program." In the absence of a statutory definition In light of the statutory language and application of the term "Federal means- of "Federal means-tested public legislative history, HHS is defining tested public benefit" people may have 'Federal means-tested public benefit" to been denied critical benefits and benefit", HHS is interpreting the term to include only benefits provided by apply only to benefits provided by services who, according to the means-tested, mandatory spending Federal means-tested, mandatory interpretation in this notice, are programs. spending programs, and not to any otherwise eligible. Without prompt Early versions of PRWORA contained discretionary spending programs or to issuance of this interpretation, state and a definition of "Federal means-tested any mandatory spending programs that local governments and other public and public benefit" that could have are not means-tested. For purposes of private benefit providers will remain encompassed benefits provided by both this Federal Register notice, a program confused over how to implement the discretionary spending programs and is considered "means-tested" if requirements of Title IV of PRWORA. mandatory spending programs. (These eligibility for the program's benefits, or Finally, some states have indicated their early versions provided that, with the amount of such benefits, or both, are intention to define the term "Federal certain exceptions, "the term 'Federal determined on the basis of income or means-tested public benefit" on their means-tested public benefit' meant a resources of the eligibility unit seeking own if Federal guidance is not public benefit (including cash, medical, the benefit. forthcoming soon. Independent housing, and food assistance and social interpretations by states will only services) of the Federal Government in The following HHS programs are compound the confusion on this issue which the eligibility of an individual, means-tested, mandatory spending since there is no certainty that each state household, or family eligibility unit for programs: Medicaid, Temporary will arrive at the same definition of the benefits, or the amount of such benefits, Assistance for Needy Families (TANF), term. In sum, although we are providing or both are determined on the basis of Foster Care, Adoption Assistance, and a 60-day period for public comment, as income, resources, or financial need of part of the Child Care Development indicated at the beginning of this notice, the individual, household, or unit." 142 Block Grant. Foster Care and Adoption this interpretation is effective Cong. Rec. S8481 (daily ed. July 22, Assistance, however, are explicitly immediately. 1996).) During debate over the bill in the exempted from the term "Federal Senate, a member of the Senate raised means-tested public benefit" under IV. Economic Impact a point of order pursuant to the Byrd Section 403(c)(2)(F). The Child Care The Department has analyzed the Rule, and the definition was struck. The Development Block Grant program is costs and benefits of this notice to Senate Parliamentarian upheld the Byrd unique in that it is funded from both determine whether it has a substantial Rule objection, the Senate did not mandatory and discretionary parts of economic effect on the economy as a appeal the ruling, and PRWORA was the budget. Since the funds are whole, on states, or on small entities. ultimately enacted without defining the operationally commingled at the state The purpose of this analysis was to and local level, and since the mixed term. identify less burdensome or more PRWORA was subject to Section 313 nature of the funding results in beneficial alternatives and thereby to of the Congressional Budget Act of 1974, budgetary effects more closely akin to influence the requirements imposed by also known as the "Byrd Rule," because those of a discretionary spending the notice. it was enacted as a budget reconciliation program, we are treating Child Care as PRWORA creates major economic bill. Under the Byrd Rule, a Senator may a discretionary spending program for effects, a large portion of which results raise a point of order to strike or prevent purposes of interpreting "Federal from changes in the law relating to the incorporation of "extraneous" means-tested public benefit. Therefore, immigrants' eligibility for Federal material. A provision in a reconciliation the HHS programs that constitute benefits. We estimated the 1997-2002 bill will be considered "extraneous" "Federal means-tested public benefits" Federal budget savings to Medicaid due and subject to a point of order if, among under PRWORA are Medicaid and to the immigrant restrictions would be other things, "it produces changes in TANF. $5.1 billion. There were no Federal outlays or revenues which are merely This interpretation pertains only to budget savings estimated for TANF incidental to the non-budgetary HHS and its benefit programs. Other because, as a block grant, its spending components of the provision." 2 U.S.C. Executive Branch agencies whose levels were fixed regardless of caseload 644(b)(1)(D). The legislative history of programs may be subject to PROWORA size. These Medicaid budget effects are PRWORA indicates that the Senate will make independent determinations essentially due to the eligibility understood the significance of the Byrd about the scope of the term. restrictions contained in the statute. 08/26/97 13:52 '202 690 6562 DHHS/ASPE/HSP 004 45258 Federal Register / Vol. 62, No. 165 / Tuesday, August 26, 1997 / Notices This notice provides HHS' Administrator, AHCPR, regarding the requests, call the CDC Reports Clearance interpretation as to whether any other technical merit of the contract proposals Office on (404) 639-7090. Send written HHS programs are subject to the submitted in response to a specific Request comments to CDC. Desk Officer, Human PRWORA requirements regarding for Proposals regarding the AHCPR Health Resources and Housing Branch, New Insurance Plan Abstraction Data Base Project. immigrants' eligibility for "Federal Executive Office Building, Room 10235, The purpose of this contract is to create a means-tested" benefits, and thereby data base of health insurance benefits Washington, DC 20503. Written serves to prevent confusion among information. These data describe the health comments should be received within 30 administering agencies, grantee benefits included in health insurance policy days of this notice. agencies, benefit providers, and the booklets that are collected as part of the Proposed Projects public. This interpretation has no effect Medical Expenditure Panel Survey. In order on overall spending levels for any to develop a uniform set of benefits data, 1998 National Health Interview discretionary-funded HHS programs. policy booklets are read, reviewed for Survey, Basic Module (0920-0214)- Nor does this interpretation create completeness, and information is abstracted Revision-The annual National Health into an electronic data base. To support this burdens or mandates on states or small Interview Survey (NHIS) is a basic effort, the contract also provides support for source of general statistics on the health entities. programming the required software and for As a result of the PRWORA eligibility of the U.S. population. Due to the implementing a training component. The restrictions, this notice is classified as integration of health surveys in the training-component is needed to instruct economically "significant" under personnel in a uniform set of standards to be Department of Health and Human Executive Order 12866's criterion of an applied during the abstraction of information Services, the NHIS also has become the economic effect of more than $100 from health insurance policy booklets. sampling frame and first stage of data million. For the same reason, it is Agenda: The Committee meeting will be collection for other major surveys, classified as a "major rule" for purposes devoted entirely to the technical review and including the Medical Expenditure of Congressional review under 5 U.S.C. evaluation of the contract proposals Panel Survey, the National Survey of submitted in response to the above § 801 et. seq., Subtitle E of the Small Family Growth, and the National Health referenced Request for Proposals. The Business Regulatory Enforcement and Nutrition Examination Survey. By Administrator, AHCPR, has made a formal Fairness Act of 1996 (Pub. L. 104-121). linking to the NHIS, the analysis determination that this meeting will not be And, for the same reasons noted in open to the public. This action is necessary potential of these surveys increases. The section III above, this notice is effective to protect the free and full exchange of views NHIS has long been used by immediately under the exception in the evaluation process and government, university, and private procedures of § 808 of that statute safeguard confidential proprietary researchers to evaluate both general because we have determined for good information. and personal information health and specific issues. such as concerning individuals associated with the cancer, AIDS, and childhood cause that delayed implementation is impractical and contrary to the public proposals that may be revealed during the immunizations. Journalists use its data meeting. This action is taken in accordance to inform the general public. It will interest. with section 10(d) of the Federal Advisory continue to be a leading source of data Dated: August 21, 1997. Committee Act, 5 U.S.C., Appendix 2, 5 USC for the Congressionally-mandated (b)(c)(6), 41 CFR Section 101-6.1023 and Donna E. Shalala, Department procurement regulations, 48 CFR "Health US" and related publications, Secretary. section 315.604(d). as well as the single most important [FR Doc. 97-22683 Filed 8-25-97; 8:45 am] Anyone wishing to obtain information source of statistics to track progress regarding this meeting should contact Jessica toward the National Health Promotion BILLING CODE 4150-04-M Vistnes, Center for Cost and Financing and Disease Prevention Objectives, Studies, Agency for Health Care Policy and "Healthy People 2000.' Research. 2101 East Jefferson Street, Suite Because of survey integration and DEPARTMENT OF HEALTH AND 500, Rockville, Maryland 20852, 301/594- changes in the health and health care of HUMAN SERVICES 1406. the U.S. population. demands on the Dated: August 20, 1997. NHIS have changed and increased. Agency for Health Care Policy and John M. Eisenberg, leading to a major redesign of the Research Administrator. annual core questionnaire, or Basic Contract Review Meeting (FR Doc. 97-22620 Filed 8-25-97; 8:45 am] -Module, and a redesign of the data BILLING CODE 4160-90-M collection system from paper In accordance with Section 10(a) of questionnaires to computer assisted the Federal Advisory Committee Act (5 personal interviews (CAPI). Those U.S.C. Appendix 2), announcement is DEPARTMENT OF HEALTH AND redesigned elements were partially made of the following technical review HUMAN SERVICES implemented in 1996 and fully committee to meet during the month of implemented in 1997. This clearance is September 1997: Centers for Disease Control and for the second full year of data Name: Committee on the Agency for Prevention collection using the Basic Module on Health Care Policy and Research Health CAPI, and for implementation of the [30DAY-22-97] Insurance Plan Abstraction Data Base Project. first "Topical Module" (or supplement), Date and Time: September 3. 1997, 10:00- Agency Forms Undergoing Paperwork which is on Health People 2000 12:00 p.m. Reduction Act Review Objectives. Ad hoc Topical Modules on Place: Agency for Health Care Policy and various health issues are provided for in Research, 2101 East Jefferson Street, Suite The Centers for Disease Control and the redesigned NHIS. This data 500, Rockville. Md 20852. This meeting will be closed to the public Prevention (CDC) publishes a list of collection, planned for January- information collection requests under December 1998. will result in Purpose: The Technical Review Committee's charge is to provide, on behalf review by the Office of Management and publication of new national estimates of of the Agency for Health Care Policy and Budget (OMB) in compliance with the health statistics. release of public use Research (AHCPR) Contracts Review Paperwork Reduction Act (44 U.S.C. micro data files, and a sampling frame Committee, recommendations to the Chapter 35). To request a copy of these for other integrated surveys. In 08/26/97 13:54 202 690 6562 DHHS/ASPE/HSP 005 45284 Federal Register / Vol. 62. No. 165 / Tuesday. August 26. 1997 / Notices Sunshine Act. Pub. L. 94-409, that the benefits" are supplemental security which the eligibility of an individual. Securities and Exchange Commission income payments made under title XVI household. or family eligibility unit for will hold the following meeting during of the Social Security Act. This notice benefits. or the amount of such benefits. the week of August 25. 1997. pertains to the eligibility of aliens for or both are determined on the basis of A closed meeting will be held on certain government benefits during their income, resources, or financial need of Thursday, August 28, 1997 at 10:00 a.m. first 5 years of entry with a specified the individual, household, or unit." 142 Commissioners, Counsel to the immigrant status, to aliens who are Cong. Rec. S8481 (daily ed. July 22, Commissioners, the Secretary to the lawfully admitted for permanent 1996).) Commission. and recording secretaries residence who can be credited with 40 PRWORA was subject to section 313 will attend the closed meeting. Certain qualifying quarters of coverage. and to of the Congressional Budget Act of 1974, staff members who have an interest in the operation of alien-sponsor deeming also known as the "Byrd Rule." because the matters may also be present. rules. it was enacted as a budget reconciliation The General Counsel of the FOR FURTHER INFORMATION CONTACT: bill. Under the Byrd Rule, a Senator may Commission, or his designee. has Diane Blackman. Deputy Associate raise a point of order to strike or prevent certified that. in his opinion, one or Commissioner, Office of Program the incorporation of "extraneous" more of the exemptions set forth in 5 Benefits Policy, Social Security material. A provision in a reconciliation U.S.C. 552b(c)(4), (8), (9)(A) and (10) bill will be considered "extraneous" Administration, 6401 Security and 17 CFR 200.402(a)(4). (8), (9)(i) and Boulevard. Baltimore, Maryland 21235. and subject to a point of order if, among (10), permit consideration of the other things, "it produces changes in 410-965-3571. scheduled matters at the closed meeting. outlays or revenues which are merely Commissioner Hunt, as duty officer, SUPPLEMENTARY INFORMATION: incidental to the non-budgetary voted to consider the items listed for the Section 403 of title IV of the components of the provision." 2 U.S.C. closed meeting in a closed session. 644(b)(1)(D). The legislative history of PRWORA, enacted August 22, 1996, The subject matter of the closed PRWORA indicates that the Senate provides that qualified aliens entering meeting scheduled for Thursday, the United States on or after the date of understood the significance of the Byrd August 28, 1997, at 10:00 a.m., will be: Rule objection in terms of limiting the enactment. are ineligible for "Federal Institution and settlement of means-tested public benefits" during scope of the definition of "Federal injunctive actions. means-tested public benefit" to the first 5 years they are qualified aliens, Institution and settlement of mandatory spending programs. while unless they fall within certain specified administrative proceedings of an leaving discretionary programs exceptions. In addition. sections 402 enforcement nature. unaffected. See 142 Cong. Rec. at S9403 and 435 provide that aliens who are At times, changes in Commission (daily ed. August 1. 1996) (statement of lawfully admitted for permanent priorities require alterations in the Senator Chafee); 142 Cong. Rec. at residence are eligible for certain Federal S9400 (statements of Senators Graham, scheduling of meeting items. For further benefits if they can be credited, information and to ascertain what, if Kennedy and Exon). Therefore, to the individually and/or from a spouse or extent the definition of "Federal means- any. matters have been added, deleted parent, with 40 qualifying quarters of or postponed. please contact: tested public benefit" included benefits coverage. However, qualifying quarters The Office of the Secretary at (202) provided by discretionary spending of coverage may not be credited for any programs. it was potentially subject to a 942-7070. quarter in which the individual received Byrd Rule objection and thus stricken Dated: August 21, 1997. a "Federal means-tested public benefit" from the legislation. Margaret H. McFarland. after December 31, 1996. Similarly, During Senate debate on PRWORA, a Deputy Secretary. under section 412, aliens who are point of order was raised pursuant to [FR Doc. 97-22799 Filed 8-22-97: 1:00 p.m.] lawfully admitted for permanent the Byrd Rule. The Presiding Officer residence are eligible for certain State BILLING CODE 8010-01-M sustained the point of order. and the public benefits if they can be credited ruling was not appealed. The definition with 40 qualifying quarters of coverage was stricken and PRWORA was but only if they did not receive a SOCIAL SECURITY ADMINISTRATION ultimately enacted without the term "Federal means-tested public benefit" "Federal means-tested public benefit" Personal Responsibility and Work in that quarter after the foregoing date. being defined. H.R. Conference Report Opportunity Reconcillation Act of Also, with respect to the operation of No. 725. 104th Congress. 2nd session 1996: Federal Means-Tested Public the alien-sponsor deeming rules 381-82 (1996). Benefits Paid by the Social Security described in section 421, receipt of In light of the statutory language and Administration "Federal means-tested public benefits" legislative history. "Federal means- is a factor in determining the duration tested public benefit" applies only to AGENCY: Social Security Administration. of the.deeming period. benefits provided by Federal means- ACTION: Notice of Benefits Paid by the Prior to the enactment of PRWORA. tested. mandatory spending programs. Social Security Administration Meeting early versions of the bill contained a The purpose of this notice is to the Definition of a "Federal Means- definition of "Federal means-tested announce which payments made by the Tested Public Benefit". public benefit" that could have Social Security Administration encompassed benefits provided by both constitute a "Federal means-tested SUMMARY: The Social Security discretionary spending programs and public benefit" as described above. The Administration announces that. for mandatory spending programs. (These Social Security Administration purposes of title IV of the Personal early versions provided that, with announces that. of the programs it Responsibility and Work Opportunity certain exceptions, "the term 'Federal administers. only supplemental security Reconciliation Act of 1996 (PRWORA), means-tested public benefit' meant a income benefits under title XVI of the as amended, the only benefits paid by public benefit (including cash. medical. Social Security Act are "Federal means- the Social Security Administration housing, and food assistance and social tested public benefits" for purposes of which are "Federal means-tested public services) of the Federal Government in title IV of the Personal Responsibility 08/26/97 13:55 202 690 6562 DHHS/ASPE/HSP 006 Federal Register / Vol: 62, No. 165 / Tuesday, August 26. 1997 / Notices 45285 and Work Opportunity Reconciliation addressed to Mr. Gary Fereno at (202) Dated: August 14. 1997. Act of 1996, as amended. 647-0200. Russell A. La Mantia. Dated: August 18. 1997. Note: If you wish to attend please send a Chairman, Shipping Coordinating Committee. Glenna Donnelly, fax to (202) 647-7407 not later than 24 hours [FR Doc. 97-22582 Filed 8-25-97: 8:45 am) Assistant Deputy Commissioner for Programs before the scheduled meeting. On this fax. BILLING CODE 4710-07-M und Policy. please include subject meeting. your name, [FR Doc. 97-22697 Filed 8-25-97; 8:45 am} social security number, company/ organization, and date of birth. One of the DEPARTMENT OF STATE BILLING CODE 4190-29-P following valid photo identifications will be required for admittance: U.S. driver's license [Public Notice No. 2592] with your picture on it, U.S. passport. U.S. DEPARTMENT OF STATE Government identification (company ID's are Shipping Coordinating Committee, no longer accepted by Diplomatic Security). Subcommittee on Safety of Life at Sea [Public Notice No. 2593) Enter from the "C" Street Main Lobby. and Associated Bodies, Working United States International Dated: August 15, 1997. Group on Stability and Load Lines and Telecommunications Advisory Earl S. Barbely, on Fishing Vessels Safety; Notice of Committee (ITAC), Standardization Meeting Chairman, U.S. ITAC for Sector (ITAC-T); Study Groups B and Telecommunications Standardization. The Working Group on Stability and D and Citel Ad-Hoc; Meeting Notice [FR Doc. 97-22583 Filed 8-25-97; 8:45 am] Load Lines and on Fishing Vessels The Department of State announces BILLING CODE 4710-45-M Safety of the Subcommittee on Safety of that the United States International Life at Sea will conduct an open Telecommunications Advisory meeting at 9 a.m. on Thursday, DEPARTMENT OF STATE Committee (ITAC), Telecommunications September 18, 1997. in Room 6103, at Standardization Sector (ITAC-T) Study U.S. Coast Guard Headquarters, 2100 Groups B and D and CITEL AD-HOC [Public Notice No. 2591] Second Street, SW. Washington. DC have scheduled meetings to develop 20593-0001. This meeting will discuss United States positions and Shipping Coordinating Committee the upcoming 41st Session of the contributions for upcoming ITU-T International Maritime Organization Subcommittee on Stability and Load meetings dealing with standardization (IMO) Legal Committee; Notice of Lines and on Fishing Vessels Safety activities of the International Meeting (SLF) and associated bodies of the Telecommunications Union and International Maritime Organization preparatory activity for CITEL PCC-I The U.S. Shipping Coordinating (IMO) which will be held on January and COM/CITEL. These meetings will Committee (SHC) will conduct an open 26-30, 1998. at the IMO Headquarters in take place at the Department of State, at meeting at 10:00 a.m., on Wednesday, London, England. 2201 C Street, NW., Washington, DC October 1, 1997, in Room 2415 U.S. Items of discussion will include the beginning at 9:30 a.m. each day and are Coast Guard Headquarters, 2100 Second following: scheduled to meet all day. The ITAC- Street, S.W., Washington, D.C. The T Study Groups B and D dealing purpose of this meeting is to prepare for a. Harmonization of damage stability primarily with the upcoming meetings the 76th session of the IMO Legal provisions in the IMO: of ITU-T Study Groups 7. 8. and 4 will Committee. which will be held October b. Progress of the Intersessional meet September 23 in Room 1207, and 13-17, 1997, in London. regarding the Correspondence Group on Load Lines the preparatory activities for CITEL provision of financial security for issues; meetings will follow in the same room. seagoing vessels, compensation for C. Technical revisions to the Code on Study Groups B and D will meet on pollution from ships' bunkers, a draft Intact Stability; November 4, 1997 in Room 1406 to convention on wreck removal, the continue preparations for ITU-T Study carriage by sea of radioactive materials, d. High Speed Craft Code revision: Group 7 in December, 1997, and the and other matters. This meeting will e. Role of the human element, including meeting of ITU-T Study Group in also be a further opportunity for shipboard loading and stability January11 998. and the COM/CITEL interested members of the public to software; and meeting scheduled for December 1-5, express their views on whether the f. Safety aspects of ships engaged in a 1997 in Montevideo, Uruguay. A more United States should ratify the ballast water exchange. extensive agenda may be developed and Hazardous and Noxious Substances distributed by fax or electronic mail to Convention, adopted in London in May, Members of the public may attend members prior to the announced 1996. this meeting up to the seating capacity meetings including the scheduling of of the room. Interested persons may appropriate Ad-Hoc meetings. Other Members of the public are invited to seek information by writing: Mr. Paul matters within the purview of U.S. attend the SHC meeting. up to the Cojeen. U.S. Coast Guard Headquarters, Study Group D as well as Ad-Hoc CITEL seating capacity of the room. For further Commandant (G-MSE-2), Room 1308, preparations may be raised. information. or to submit views 2100 Second Street, SW, Washington, Members of the General Public may concerning the subjects of discussion, DC 20593-0001 or by calling (202) 267- attend this meeting and join in the write to either Captain Malcolm J. 2988. discussions, subject to the instructions Williams, Jr., or Lieutenant Commander of the Chair. Admittance of public Bruce P. Dalcher, U.S. Coast Guard (G- Dated: August 14. 1997. members will be limited to the seating LMI), 2100 Second Street, S.W., Russell A. La Mantia, available. In this regard. entrance to the Washington, D.C. 20593, or by Chairman, Shipping Coordinating Committee. Department of State is controlled. telephone (202) 267-1527, telefax (202) [FR Doc. 97-22584 Filed 8-25-97; 8:45 am} Questions regarding the meeting may be 267-4496. BILLING CODE 4710-07-M WR - means - tested benefits Diana Fortuna 08/05/97 01:02:35 PM Record Type: Record To: Elena Kagan/OPD/EOP, Christopher C. Jennings/OPD/EOP, Jeanne Lambrew/OPD/EOP, Sarah A. Bianchi/OMB/EOP CC: Cynthia A. Rice/OPD/EOP Subject: Is the new child health program a means tested benefit? The welfare law prevents legal immigrants who arrive after 8/96 from getting something called means tested benefits. After a very long, tortured process, HHS is about to release its definition of this term (although it has already given Lamar Smith and others on the Hill an advance peek). It will place only a few programs off-limits to these new entrants - mostly programs that are already off-limits because of other explicit provisions in the law (Medicaid, TANF, SSI, food stamps). Now, however, it is dawning on all of us that we have this new child health program. I have heard that HHS's definition would probably make this program inaccessible to new entrants. We and OMB are asking HHS to take a few days to examine this question before releasing its definition. HHS is more inclined not to wait. Let me know if you want to be involved in this issue as we figure it out. Diana - We've wasted This lung Let's figure it out first. Elena PHOTOCOPY MISC. HANDWRITING 03/20/97 10:37 202 514 1724 DOJ-OAAG MTB 002 U.S. Department of Justice Office of the Associate Attorney General Deputy Associate Attorney General Washington. D.C. 20530 CC Smalligan May 20, 1997 DetraBond MEMORANDUM TO: Diana Fortuna Domestic Policy Council FROM: Francis M. Allegra TWAA Deputy Associate Attorney General SUBJECT: Need for Resolution of Roll-out Issues Involving the Verification Guidelines We have scheduled a meeting with the Attorney General for 4:15 P.M., on May 21, 1997, to brief her on the verification guidelines package. We anticipate that the verification package will be complete as of that briefing and that OIRA will have also finished its review of the package. Our hope is that the Attorney General will be able to sign off on the package at the briefing or shortly thereafter. As previously planned, our intent is to release the package after the Department of Health and Human Services releases its definition of "means-tested." As things stands, there are several remaining issues concerning the process and timing of the "roll out" of the verification guidelines: Congressional Briefings. As you know, many of the individuals who attended our last Welfare Working Group meeting at the OEOB believed that, prior to the release of the verification guidelines, various agency representatives should conduct a briefing (or briefings) on the Hill designed to familiarize some set of committee staff with the contents of the document. My sense is that you did not necessarily agree with this approach. We need to come to some resolution as to whether those briefings should go forward and, if so, when and in what form. For the record, the Justice Department believes that we should conduct some form of briefing to ensure that the package is understood and that we maintain as good as possible relationships with the relevant committees. OK Gearing up on Means-Tested A related issue with respect to the Congress involves whether we should alert and prepare key legislators to support the Administration and respond to the claims that likely will come from some quarters that the HHS definition of "means tested" is inconsistent with the statute and Congressional intent. Again, this was discussed at our last meeting, but I am unsure that any definite plans were made to mount an anticipated counter-offensive on this issue. - Irene DOJ 05/20/97 10:37 202 514 1724 DOJ-OAAG 003 - 2 - Briefings of Advocacy Groups. Another issue involves whether various agency representatives should brief advocacy groups on the content of the verification guidelines. Such briefings probably could occur either before or immediately after the release of the verification guidelines. Training of Benefit Granting Agencies. Yet another issue - which we may or may not need to resolve at this point - -- involves how to train benefit-granting agencies on the use of the verification guidelines. Our view is that training should occur after the agencies have had a chance to absorb the guidelines, at a point where questions might arise. Other agencies participating in the Welfare Working Group may have specific ideas as to how this training might best be handled. ok We would like to have some resolution to these issues as soon as possible (with the exception, perhaps, of the training issue), so as to develop a specific timetable for releasing the verification guidelines. Please let me know how you would like to proceed (514-2987). CC: David Ogden Randy Moss 05/08/97 14:49 002 ATTACHMENT 7 INTERIM GUIDANCE FEDERAL MEANS-TESTED PUBLIC BENEFITS The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (the "Act") provides that qualified aliens entering the U.S. on or after August 22, 1996, are ineligible for federal means-tested public benefits during the first five years they are qualified aliens, unless they fall within a specific exception. (Non-qualified aliens are ineligible for such benefits regardless of when they entered the U.S.) All qualified aliens are eligible for federal means- tested public benefits after the expiration of such five year period. The Department of Health and Human Services, with the concurrence of other relevant federal agencies, has interpreted the limitations on eligibility for federal means-tested public benefits to apply only to mandatory spending programs. Mandatory spending programs are programs for which budget authority is provided by entitlement authority, the Food Stamp Act, or a law other than an appropriations law. Federal means-tested public benefits include such programs as Medicaid, Food Stamps, SSI, and TANF. The eligibility of qualified aliens for federal means-tested public benefits turns on the date on which they entered the U.S., the number of years since they obtained qualified alien status, their particular immigration status, and the specific benefits they are seeking. 1. Determine the date on which the qualified alien entered the United States by reviewing the documents evidencing his or her status or, if the documents do not indicate the date of entry, by filing INS Form G-845 and Supplement along with a copy of the document with the local INS office or [INS INSERT]. If the applicant entered the U.S. before August 22, 1996, and has remained here until attaining qualified alien status, he or she is eligible for all federal means-tested public benefits for which he or she satisfies all programmatic eligibility requirements, and you should not engage in any further verification of immigration status. If the applicant entered the U.S. on or after August 22, 1996, and is a qualified alien, determine if he or she is eligible under Paragraphs 2 and 3 below. 2. An applicant who entered the U.S. on or after August 22, 1996, and who has attained qualified alien status is eligible for all federal means-tested public benefits if five years have passed from the date the applicant attained qualified alien status. Determine the date on which the applicant attained qualified alien status by reviewing the documents evidencing his or her status or, if the documents do not indicate the date of entry, by filing INS Form G-845 and Supplement along with a copy of the document with the local INS office. 05/08/97 14:49 003 3. A qualified alien who entered the U.S. on or after August 22, 1996, is ineligible for federal means-tested public benefits during the first five years after he or she obtained qualified alien status unless the alien falls within one of the following exceptions: a. Refugees, asylees and aliens whose deportation or removal has been withheld -- see Attachment 5 to Interim Guidance for definition and documentation; or b. Aliens lawfully residing in any state who are honorably discharged veterans, or on non-training active duty in the U.S. Armed Forces, or are the spouse or unmarried dependent child of such a veteran or active duty personnel see Attachment 6 and Exhibit B thereto to Interim Guidance for definition and documentation. 4. Under the terms of the Act, the five-year ban does not apply to the following benefits: Medical assistance under Title XIX of the Social Security Act (or any successor program to such Title) for care and services that are necessary for, the, treatment of an emergency medical condition (as defined in § 1903(v)(3) of such Act) of the alien involved and are not related to an organ transplant procedure, if the alien involved otherwise meets the eligibility requirements for medical assistance under the state plan approved under such Title (other than the requirement of the receipt of aid or assistance under Title IV of such Act, SSI benefits under Title XVI of such Act, or a state supplementary payment); Short-term, non-cash, in-kind emergency disaster relief; Assistance or benefits under the National School Lunch Act; Assistance or benefits under the Child Nutrition Act of 1966; Public health assistance (not including any assistance under Title XIX of the Social Security Act) for immunizations with respect to immunizable diseases and for testing and treatment of symptoms of communicable diseases whether or not such symptoms are caused by a communicable disease; 2 - 05/08/97 V.I. 004 Payments for foster care and adoption assistance under parts B and E of Title IV of the Social Security Act for a parent or child who would, in the absence of the Act's prohibition on payment of federal means-tested public benefits to qualified aliens during the first five years after entry into the U.S. with qualified alien status, be eligible to have such payments made on the child's behalf under such part, but only if the foster or adoptive parent(s) of such child is a qualified alien; Benefits covered by Attorney General Order No. 2049, 61 F.R. 45985 (Aug. 30, 1996), attached to Attachment 4 of the Interim Guidance, re: government-funded community programs, services or assistance that are necessary for protection of life or safety; Programs of student assistance under Titles IV, V, IX, and X of the Higher Education Act of 1965, and Titles III, VII, and VIII of the Public Health Service Act; Means-tested programs under the Elementary and Secondary Education Act of 1965; Benefits under the Head Start Act; Benefits under the Job Training Partnership Act; and Refugee and entrant assistance activities authorized by Title IV of the INA and section 501 of the Refugee Education Assistance Act of 1980 for Cuban and Haitian entrants as defined in § 501(e)(2) of the Refugee Education Assistance Act of 1980. 3 - 5-09-1997 4:04PM FROM P.2 202 314 0044 P.02/02 MAY - 9 1997 PROPOSED DEFINITION OF MEANS-TESTED PUBLIC BENEFIT FOR THE AFFIDAVIT OF SUPPORT REGULATION "Means-tested public benefit means any public benefit determined to be a means-tested public benefit by the Federal agency, State, State agency, or political subdivision of a State which provides the funding for the public benefit, subject to the following conditions: 1) if a benefit is funded in whole or in part by any funds provided by the Federal Government, then the determination of whether that benefit is a means-tested public benefit shall be made by the Federal agency administering the federal funds; 2) a benefit shall not be considered a means-tested public benefit for purposes of enforcing an affidavit of support executed pursuant to this part unless, prior to the date the affidavit of support is executed, the determination that the benefit is a means tested public benefit is published in the following manner: a) determinations made by a Federal agency must be published in the Federal Register, and b) determinations made by a State, a State agency or a political subdivision of a State must be published in an official publication of the State or political subdivision of a State normally used by the State or political subdivision to provide public of notice of laws, regulations, codes or other official acts; and 3) a benefit is not a means-tested public benefit if the agency or entity administering the benefit does not consider the income of an pplicant when determining eligibility for the benefit or if it is a benefit described in section 22(b) or section 423(d) of Public Law 104-193. Note: Section 423(d) of Public Law 104-193 (Welfire Reform) provides a list of benefits for which reimbursement under the affidavit of support is not available. While IIRIRA amended section 423(a) of P.L. 104.193, it did not amend or repeal section 423(d). Section 422(b) provides a list of benefits to which the States may not apply the provision --422(a)- that permits them to deem the income of an alien applying for benefits to include the income of any person who has executed an affidavit of support on his or her behalf. Sections 423(d) and 422(b) are parallel provisions that cover the same types of Federal and State benefits. INS press or this 14.9 no Anna 150 12.8 exch of liter sub for 23b 21b common rule- - x206 46fs strongest 36MA 36551 / b technical adv of CR w/o SBREFA triggpring 0 / SBREFA letter [ ] litter? 2 Consult C W consistent < W/IVG, 100m affid ofspt Andrea Data if 400m fill boday cong Smithtimmigrabrom Not Do you send Hits to Hill? Up to SERVICES USA Office of the Assistant Secretary ( DEPARTMENT OF HEALTH & HUMAN SERVICES for Legislation i Washington, D.C 20201 July 16, 1997 The Honorable Lamar Smith, Chairman House Judiciary Subcommittee on Immigration B-307B Rayburn House Office Building Washington, D.C. 20515 Dear Chairman Smith: As you requested. enclosed is a letter setting forth our interpretation of federal means-tested public benefit. a legal analyses from the Department of Justice, and colloquies from the Senate debate on the Personal Work and Responsibility and Opportunity Act. We are continuing to work on the list of HHS discretionary means-tested public benefit programs and will send that to you shortly. Please contact me if you have any further questions 202-690-6786. Sincerely, Sh rsse Irene B. Bueno Deputy Assistant Secretary for Legislation (Congressional Liaison) Enclosures : DEPARTMENT OF HEALTH AND HUMAN SERVICES OFFICE OF THE SECRETARY WASHINGTON DC. 20201 THE GENERAL COUNSEL November 22, 1996 TO: J. Davitt McAteer, General Counsel Department of Labor Copies of this letter are being sent simultaneously to: Arthur Fried, General Counsel Social Security Administration James S. Gilliland, General Counsel Department of Agriculture Mary Lou Keener, General Counsel Department of Veterans Affairs Judith A. Winston, General Counsel Department of Education Harriet S. Rabb DEPARTMENT OF HEALTH & HUMAN SERVICES Office of the Secretary The General Counsel Washington, D.C. 20201 November 21, 1996 The Honorable J. Davitt McAteer Solicitor U.S. Department of Labor 200 Constitution Avenue, NW Room S2002 Washington, DC 20210 Dear Mr. McAteer: Enclosed is an interpretation of the term "Federal means-tested public benefit, " as that term is used in sections 403 and 421 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). The interpretation seems to us an appropriate reading of this undefined aspect of the statute. In addition, this reading of the term best balances our Departments' other statutory obligations with Congressional goals embodied in PRWORA. Your Department may have programs that provide "Federal means- tested public benefits. Please let us know if the enclosed interpretation of that term is one in which you concur. In summary, the interpretation explained in the memo is as follows: Section 403 of PRWORA denies qualified aliens who enter the United States on or after August 22, 1996, "any Federal means-tested public benefit" (with specified exceptions) for five years after entry. In addition, section 421 applies new immigrant deeming rules for all "Federal means-tested public benefit" programs. The legislation, however, does not define the term "Federal means-tested public benefit." A proposed definition of the term was deleted from the bill as a result of a Byrd Rule objection. For the reasons described in more detail in the enclosed memorandum, the term "Federal means-tested public benefit" program as used in PRWORA should be interpreted to exclude discretionary programs. Please contact Harriet Rabb at your earliest convenience but in any event, no later than Wednesday, November 27, to let us know if you concur with the enclosed interpretation. If you have any The Honorable J. Davitt McAteer - Page 2 questions about the analysis set forth in this opinion, please contact Harriet Rabb (202-690-7741) or her Deputy, Anna Durand (202-690-6318). Sincerely, Larriet S.Rubb Harriet S. Rabb General Counsel U.S. Department of Health and Human Services Aclson Nelsoh A. Diaz Why General Counsel U.S. Department of Housing and Urban Development Enclosure DEFINITION OF "FEDERAL MEANS-TESTED PUBLIC BENEFIT" The following is a legal analysis of the meaning of the term "Federal means-tested public benefit" as used in Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. No. 104-193 (PRWORA). Both the statutory language and legislative history are unclear on the meaning of this term, and, therefore, the statute is susceptible to various interpretations. As explained below, however, sound legal and policy considerations support a conclusion that the term is limited to means-tested mandatory spending programs. Section 4.03 of PRWORA denies qualified aliens' who entered the United States after the its enactment "any Federal means-tested public benefit" (with specified exceptions) for five years after entry. Also, the new deeming rules in section 421 of PRWORA apply to "any Federal means-tested public benefits" program as provided in section 403. Although the statute does not define the term "Federal means-tested public benefit," the legislative history proffers a definition and clarifies the effect of the five-year eligibility ban on future immigrants and the new deeming rules. The legislative history of PRWORA indicates that a definition of the term "Federal means-tested public benefit" was eliminated from the bill in compliance with the Byrd Rule. 142 Cong. Rec. S.9400, 9403 (daily ed. Aug. 1, 1996). The conference report sets forth the definition of "Federal means-tested public benefit" that was stricken from the bill: a public benefit (including cash, medical, housing, and food assistance and social services) of the Federal Government in which the eligibility of an individual, household, or family eligibility unit for benefits, or the amount of such benefits, or both are determined on the basis of income, resources, CY financial need of the individual, household, or unit. The conference report states that "[i]t is the intent of the conferees that this definition be presumed to be in place for purposes of this title." In addition, portions of the Senate debate in the Congressional Record on August 1 suggest that some Senators viewed the reach of Section 403 as covering a variety of means-tested programs. See e.c., id. at S9377 (statement of Sen. 1 "Qualified alien" is defined in section 431 of PRWORA to include: (1) aliens lawfully admitted for permanent residence; (2) asylees; (3) refugees; (4) parolees; (5) aliens whose deportation is being withheld under section 243 (d) of the Immigration and Nationality Act (INA); and (6) aliens granted conditional entry pursuant to section 203 (a) (7) of the INA as in effect prior to April 1, 1980. Dodd (bars legal immigrants' access to "most Federal programs", citing Mayor Guiliani) ) i id. at S9395 (statement of Sen. Inouye, "all Federal means-tested programs") This definition, however, was struck by the Byrd Rule. Thus, to accept the definition contained in the conference report and the other remarks cited in this paragraph at face value would be to ignore the Byrd Rule and its application to this situation. Moreover, the conference report, the application of the Byrd Rule, and the legislative history may be given harmonious effect by interpreting "Federal means-tested programs" as described below. Congress adopted the Byrd Rule, codified as Section 313 of the Congressional Budget Act, 2 U.S.C. § 644, "to address growing concerns that it was being forced to consider nonbudgetary (and potentially controversial) matters under the expedited reconciliation procedures rather than under its regular procedures. S. Rep. No. 103-297, 103rd Cong., 2nd Sess. (1994). It thus protects the reconciliation process by allowing the Senate to strike, by raising a point of order, certain "extraneous provisions. " The Byrd Rule may be waived by a three- fifths vote in the Senate. A provision will be considered "extraneous" if, among other criteria, it does not produce a change in outlays or revenues or it produces changes in outlays or revenues that are merely incidental to the nonbudgetary components of the provision. In the case of sections 403 and 421, the Senate invoked the Byrd Rule on the grounds that the definition would have included non- mandatory spending programs, i.e., programs that would not change outlays or revenues. The Parliamentarian upheld the Byrd Rule, the definition was deleted, and no attempt was made to waive it. Senator Chafee stated on the Senate floor the significance of striking the definition: According to the Parliamentarian, that inclusion caused the definition to violate Section 313 (b) (1) (D) of the Byrd Rule, which prevents reconciliation legislation from extending its scope to items that provide merely incidental deficit reduction, that is, discretionary programs. Therefore, when the bill was considered in conference, I understand that there was an intentional effort to ensure this provision complied with the Byrd Rule by omitting the definition of that particular term. In other words, then, the term "Federal means-tested public benefit" dces not refer to discretionary programs. I would assume that programs such as funding for community health centers, as well as the maternal and child health block grant, would not be impacted. - 2 - 142 Cong. Rec. S9, (daily ed. August 1, 1996) See also 142 Cong. Rec. at S9400 (" [I]t is clear that this bill should not be used to make changes in discretionary programs, and those who look to interpret the action of the Congress should take this into account. (statement of Sen. Exon) (emphasis added) ) See id. at S9400 (statement of Senators Graham, Kennedy, and Exon), S9403 (statement of Senators Graham and Chafee) 2 If one focuses on this language in the Senate debate alone, it appears that the Senate was directly admonishing the administering departments to confine the reach of Section 403 to mandatory programs and to avoid any changes in the eligibility provisions of discretionary programs. In order to accommodate both the language in the conference report and the effect of the Byrd Rule objection, the term "Federal means-tested public benefit" should be interpreted to include (1) only those Federal mandatory spending programs of the Federal Government in which (2) the eligibility of an individual, household, or family eligibility unit for benefits, or the amount of such benefits, or both are determined on the basis of income, resources, or financial need of the individual, household, or unit. While this seems to be the best accommodation of the various pieces of legislative history, other objections to this interpretation are possible. For example, the "exceptions" in Section 403 (c) (2) suggest that "Federal means-tested public benefit" may encompass discretionary programs because some programs that are discretionary programs (because their funding levels are determined by appropriations) are included in the excepted list (programs under the Elementary and Secondary Education and Head Start, for example). It could be argued that these exceptions would be unnecessary if the term was confined to mandatory programs. On the other hand, read literally, Section 403 (c) (2) does not state that the programs listed there are Federal means-tested public benefits; rather, this section merely clarifies that certain types of Federal assistance or benefits are not subject to the five-year ban. Moreover, it is likely that no one thought to conform the exceptions in section 403 (c) (2) to the narrowed definition of "Federal means-tested public benefit" programs after the Byrd Rule was invoked. 2 The exchange between Senators Graham and Kennedy is particularly focused. "SENATOR GRAHAM [W] ould the Senator agree that, when the Senate struck those sections as violating the Byrd rule, the Senate's intent was to prevent the denial of services [under] the maternal and child health block grant, social services block grant, community health centers and migrant health centers? SENATOR KENNEDY: Yes." 142 Cong. Rec. S9400 (daily ed. Aug. 1, 1996). - 3 - Even if we were to conclude that we could not find the interpretation set forth above to be a complete explanation of the statutory language and legislative history, the affected departments should hesitate to apply the term "Federal means- tested public benefit" broadly in a manner that would deny qualified aliens more benefits than Congress may have clearly intended. The denial of benefits under these circumstances should be on a firmer basis than the ambiguous statutory language and legislative history surrounding this issue.³ Given the foregoing analysis, we recommend that, for purposes of this legislation, the term "Federal means-tested public benefit" programs should be interpreted to include only those Federal mandatory spending programs of the Federal Government in which eligibility for benefits, or the amount of such benefits, or both are determined on the basis of income, resources, or financial need of the individual, household, or family unit. 3 See Carter V. Derwinski, 987 F.2d 611, 615 (9th Cir. 1993) (courts may insist on a clear statement of congressional intention before interpreting a statute "in a way that compromises especially weighty values. "). - 4 - U.S. Department of Justice this Office of Legal Counsel Office or the Washington. DC. 20530 Assistant Attorney General January 14, 1997 MEMORANDUM FOR HARRIET S. RABB GENERAL COUNSEL DEPARTMENT OF HEALTH AND HUMAN SERVICES From: Dawn Johnsen Acting Assistant Attorney General Randolph D. Moss RDY Deputy Assistant Attorney General Re: Applicability of Limitations on Availability of "Federal Means-Tested Public Benefits" under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 You have requested the views of the Office of Legal Counsel regarding a construction. profrered by the Departments of Health and Human Services ("HHS") and Housing and Urban Development ("HUD"), of the scope of the phrase "federal means-tested public benefit[s]" contained in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ("PRA" or "Act").' In particular, HHS and HUD have concluded that this phrase is best construed to apply only to mandatory (and not discretionary) spending programs.³ Both departments have determined that this construction of the PRA "best balances [their] other statutory obligations with Congressional goals embodied in the [PRA]."² We further understand that the Departments of Agriculture. 1 Pub. L No. 104-193. :10 Stat. 2105 (1996). ? See Letter to Christopher H. Schroeder. Acting Assistant Attorney General. Office of Legal Counsel. from Harrier S. Rabb. General Counsei. Department of Health and Human Services (Dec. 13. 1996) ("Rabb Request"). , See, e.K., Letter 10 Artbur Fried. General Coursel. Social Security Administration. from Harriet S. Rabb. General Counsei. Department of Health and Human Services. and Nelson A. Diaz. General Counsel. Department of Housing and Urban Development Nov. 21. 1996) ("Rabb/Diaz Letter"). Education, Labor and Veterans Affairs and the Social Security Administration all concur in. or defer to, the HHS and HUD profered interpretation of the PRA. As explained more fully below, we believe that the proffered interpretation is a permissible construction of the statute. The PRA was enacted as a budget reconciliation bill. and. accordingly, must be construed agains! the backdrop of the Congressional Budget Act of 1974 ("CBA").' Under the CBA, budget reconciliation legislation is subject to expedited procedures in both the Senate and the House. To counterbalance these expedited procedures. the CBA permits a member of the Senate to raise a point of order against any material included in the legislation that is extraneous to the budget reconciliation process. Here, through application of this procedure. a broad definition of the phrase "federal means-tested public benefit" was struck from early versions of the bill that ultimately became the PRA. Significantly, the broad definition was struck because it reached discretionary spending programs. which, in this context, lay be; ond the proper scope of the reconciliation process. In light of this history, and the absence of a sufficiently clear indication that Congress intended. norwithstanding the CBA, to reach discretionary spending programs, we conclude that the meaning of the phrase "federal means-tested public benefit" is, at the very least, ambiguous. We further conclude that the HHS. HUD proffered definition is a reasonable construction of the statute. that the agency interpretation is entitled to judicial deference, and that, accordingly. the profered definition should govern. DISCUSSION Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. 110 Stat. at 2260, imposes various restrictions on aliens' eligibility for public benefits in the United States. A number of provisions in title IV establish restrictions with respect to aliens' receipt of "federal means-tested public benefit[s]." These restrictions fall into three general categories: (1) provisions that deny "federal mcans-tested public benefit[s]" to qualified aliens for the first five years after their entry into the United States:6 (2) provisions that require certain groups of aliens who seek federal and state public benefits to prove that they can be credited with 40 qualifying quarrers of work under title П of the Social Security Act ("SSA") and have not received any "federal means-tested public benefit" during any of 4 Rabb Request at :. Since receiving your letter of December 13. 1996. we have received oral advice from your office that the Social Security Administration concurs in the profered definition : Pub. L. No. 93-344. 88 Stat 297 (1974) Judined 15 amended in scattered sections of 2 U.S.C.). : See § 403(a) & (C). those quarters: and (3) provisions that establish and define sponsor-to-alien deeming rules to be applied to aliens seeking "federal means-tested public benefit[s]." The PRA contains no statutory definition of the phrase "federal means-tested public benefit." HHS and HUD, however, have concluded that the restrictions on federal means- tested public benefits contained in title IV should apply only to mandatory spending programs, i.e. programs for which funding is not subject to a definite appropriation." Under this construction of the Act, for example. newly arrived qualified aliens would be ineligible for benefits under mandatory programs for the first five years after their arrival in this country, but they would remain eligible for benefits under discretionary spending programs. The rationale of HHS and HUD for this approach is that "affected departments should hesitate to apply the term 'federal means-tested public benefit' broadly in a manner that would deny qualified aliens more benefits than Congress may have clearly intended." Rabb/Diaz Letter, attachment at 4. HHS and HUD assert that "this reading of the term best balances our Departments' other statutory obligations with Congressional goals embodied in [the PRA]," Rabb/Diaz Letter at 1, and that "sound legal and policy considerations support a conclusion that the term is limited to means-tested mandatory spending programs." Rabb/Diaz Letter, attachment at 1. In evaluating the construction proposed by HHS and HUD, we are guided by the Supreme Court's landmark opinion, Chevron U.S.A. V. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), which explains the proper approach for reviewing the construction of statutes by the agencies that administer them. The first step in the Chevron analysis is to determine "whether Congress has directly spoken to the precise question at issue." 467 U.S. at 842. If congressional meaning, as discerned through "traditional tools of statutory construction." id. at 843 n.9, :S clear, then no further inquiry is necessary, for the "unambigeously expressed intent of Congress" must control. Id. at 843. See also United States V. Alaska, 503 U.S. 569. 575 (1992). If the statute is silent or ambiguous with respect to the issue posed, then, under the second step in the Chevron analysis, the questions become whether Congress has implicitly or explicitly delegated to the agency the authority to resolve the ambiguity and, if so. whether "the agency's answer is based on a permissible construction of the statute." Chevron, 467 U.S. at 843. See also Alaska, 503 U.S. at 575. , See §§ 402(a)(2)(B)(i)(if), 412(b)(2)(B)(ii). 435. $ See § 421(a). (b)(2)(B), (c). (d). P. While we have not been provided with a comprehensive list of which programs would be subject to these title IV restrictions under the HHS/HUD interpretation. we understand that Medicaid. food stamps, Supplemental Security Income SSI and Temporary Assistance for Needy Families ("TANF") are included within the mandatory category. 3 I. Chevron Step I The starting point in determining whether "Congress had an intention on the precise question at issue." Chevron, 467 U.S. at 843 n.9. is. of course, the language of the statute itself. See Kaiser Aluminum V, Bonjomo, 494 U.S. 827, 835 (1990): Consumer Product Safety Comm'n V. GTE Sylvania, Inc., 447 U.S. 102, 108 (1980). Ordinarily, if the terms of the statute are plain, they control and that is the end of the matter. See Chevron, 467 U.S. at 843; Holly Farms Corp. V. NLRB, 116 S. Ct. 1396, 1401 (1996). At the same time, it is well-established that a provision in one Act of Congress should be read in conjunction with other relevant statutory provisions and not in isolation. See Jett V. Daiias Indep. School Disi. 491 U.S. 701, 712-13, 722-36 (1989); id. at 738-39 (Scalia, J., concurring in part and concurring in the judgment); see also Gustafson V. Alloyd Co., 115 S. Ct. 1061. 1067 (1995). Thus, courts regularly construe statutory language in light of both other provisions of the same law and relevant provisions from other laws. See. e.g.: Quackenbush V. Allstate Ins. Co., 116 S. Ct. 1712, 1718 (1996); Sullivan V, Everhart, 494 U.S. 83, 92 (1990): cf. Sullivan V. Finkelstein, 496 U.S. 617, 632 (1990) (Scalia, J., concurring) (meaning of later enacted statute may affect interpretation of "previously enacted statute, since statutes in pari materia should be interpreted harmoniously"). The fact that different statutory provisions may employ similar terms in varying contexts, for example, may give insight as to the meaning of the term in the particular context that is under review. See Medtronic, Inc. V. Lohr, 116 S. Ct. 2240, 2251-52 (1996) (plurality opinion). Similarly, the possibility that the adoption of a seemingly plain statutory meaning may cause a direct conflict with a different statitory provision. even if in a different law, may trigger application of the presumption against repeals by implication. See Wart V. Alaska, 451 U.S. 259, 266 (1981): FAA V. Robertson, 422 U.S. 255, 263 (1975); Silver V. New York Stock Exchange, 373 U.S. 341. 357 (1963). Moreover. courts commonly rely upon a general interpretive statute, the Dictionary Act, 1 U.S.C. $ 1. in construing specific statutory language that. but for the otherwise-codified definitional provision, might suggest a different meaning See Rowland v California Men's Colony, 506 U.S. 194, 199-200, 209-10 (1993); id. at 212-13. 222 (Thomas. J.. dissenting); Wilson V. Omaha Indian Tribe, 442 U.S. 653, 666 (1979); United States V. A & P Trucking Co., 358 U.S. 121, 123 (1958). The general rule that the meaning of particular statutory provisions should be determined with reference to the broader legislative landscape provides significant guidance here. As reconciliation legislation, the PRA must be interpreted in the context of both the Congressional Budget Act of 1974. which establishes general rules that govern the enactment of budget reconciliation measures. and congressional actions taken pursuant to that statutory regume. Just as courts. when considering a term that has been defined in the Dictionary Act. read that term in light of the Dictionary Act definition, so too, here, the rules set forth in the CBA provide important guidance in discerning the meaning of the relevant provisions of the PRA. 4 A. The PRA was brought to the floor of the Senate as a reconciliation bill, and as such was subject to the special rules that govern the reconciliation process set forth in section 313 of the CBA. See 2 U.S.C. § 644; Robert Keith & Edward Davis, The Senate's "Byrd Rule" Against Extraneous Matter in Reconciliation Measures 1-2 (Congressional Research Service 1995). Section 313 serves to facilitate the expedited consideration of reconciliation legislation by providing a mechanism for restricting the content of such legislation to provisions that are material to the reconciliation process. See Allen Schick, The Federal Budget: Politics, Policy, Process 82-86 (1995). Over time, these subject matter restrictions have become known as the "Byrd rule." after Senator Robert Byrd of West Virginia, their principal proponent. The basic purpose of the Byrd rule is twofold: to protect the effectiveness of the reconciliation process by excluding extraneous material that has no significant budgetary effect, and to preserve the deliberative character of the Senate by exampting from expedited consideration all legislative matters that should properly be debated under regular procedures.¹⁰ Section 313 establishes the general framework that governs the nation's budgeting process and shapes the content of the legislation that Congress enacts through the reconciliation process. Indeed, the Byrd rule has been deemed sufficiently important to the fashioning of the nation's budget that it is not merely an internal rule of Senate procedure but, as we have noted. a statute duly passed by both houses of Congress and signed by the President. The meaning of a particular provision of reconciliation legislation, therefore, such as the phrase "federal means-tested public benefit" in the PRA. must be construed in light of congressional actions taken pursuant to the CBA. 10 The Byrd rule was adopted in :986. following ears of struggle DO the Senate floor over the inclusion of extrancous provisions in budget reconciliation legislation. Originally enacted as section 20001 of the Consolidated Omnibus Budget Reconciliation Act of 1985. Pub. L. No. 99-272. 101 20001, 100 Stat. 82. 390-91 (1986). it was. in 1990, incorporated as section 313 of the Congressional Budget Act of 1974. See Budget Enforcement Act of 1990, enacted as Title XIII of Omnibus Budget Reconciliation Act of 1990. Pub. L. No. 101-508. $ 13214(b)(1). 104 Stat. 1388. 1388-622 1990) As Senator Byrd explained in introducing the amendment that ultimately bore his name: Mr. President. the Senate is a deliberative body. and the reconciliation process is not a deliberative process. Such an extraordinary process. if abused. could destroy the Senate's deliberative nature. Senate committees are creatures of the Senate. and. as such, should not be in the position of dictating to the Senate as 19 being done here. By including mater[i]al not in their jurisdiction or marter which they choose not to report as separate legislation to avail themselves of the nondeliberative reconciliation process. Senate committees violate the compact which created both them and the reconciliation process 131 Cooz. Rec. 28,968 (1985). 5 - Specifically, the CBA provides: When the Senate is considering a reconciliation bill or a reconciliation resolution upon a point of order being made by any Senator against material extraneous to the instructions 10 a committee which is contained in any title or provision of the bill or resolution or offered as an amendment to the bill or resolution, and the point of order is sustained by the Chair, any part of said title or provision that contains material extraneous to the instructions to said Committee as defined in subsection (b) of this section shall be deemed stricken from the bill and may not be offered as an amendment from the floor. Pub. L. No. 93-344. title III. § 313 (codified at ? U.S.C. § 644(a)). Section 313(b)(1) outlines six categories of "extraneous" provisions. the most significant of which, for purposes of this analysis, is (b)(1)(D). which states that a provision shall be considered extraneous "if it produces changes in outlays or revenues which are merely incidental to the non-budgetary components of the provision." 2 U.S.C. $ 644(b)(1)(D). The rule. as set forth in section 313, is enforced by a Senator raising a point of order against some provision or provisions of the bill. on the ground that that provision deals with subject matters extraneous to the legislation. The PRA's original definition of "federal means-tested public benefit," contained in both the Senate and House bills. encompassed an expansive range of benefit and assistance programs and did not distinguish between those that were mandatory and those that were discretionary. When the Senate bill reached the floor. Senater Exon invoked the Byrd rule to raise an omnibus point of order against a number of provisions of the legislation, including the definition of "federal means-tested public benefit." 142 Cong. Rec. S8423-24 (daily ed. July 22. 1996). His objection to this provision was based upon section 313(b)(1)(C) of the CBA. i.e. the provision was not within the Finance Committee's jurisdiction. Id. at S8424. The Parliamentarian upheld Senator Exon's Byrd rule objection on the grounds that the provision was outside the Finance Committee's jurisdiction and that. to the extent the definition encompassed discretionary programs. its impact on the budget was "merely incidental."i Rules determining eligibility for discretionary program benefits within a 11 The Parliamentanan upheld the objection on the basis of both sections 313(b)(1)(C) (not within Finance Committee's jurisdiction) and 313(b)(1)(D) (probibitica against policy changes with "merely incidencal" budgetary impact). See 142 Cong. Rec. 59400 (daily ed. Aug. 1. 1996) (statement of Senator Graham during consideration of conference report on H.R. 3734). see 3130 id. at S9403 (statement of Senator Chafee). Although Senator Exon's specific objection to the definition. as itemized in his list. was jurisdictional only. be raised that objection in an omnibus pount of order based generally upon section 313(b)(1), which permitted the Parliamentarian to consider any basis under (b)(1) for upholding the objection. in any event. in this case it ultimately makes no difference to the analysis whether Senator Exon's objection was sustained on jurisdictional grounds nione or on both grounas because any jurisdictional objection under section 313 is based upon the fact that the Senate committee considering a reconciliation bill would only have jurisdiction over mandatory programs. See Schick. The Federal Budget 83 (1995) (under current practice, "reconciliation instructions are 6 - reconciliation bill have no direct effect on the budget. Rather, reducing the size of a discretionary program is accomplished by Congress reducing the appropriation for the program, which the proposed definition of "federal means-tested public benefit" did not do. By contrast, so-called entitlement, or mandatory. programs, generally operate under indefinite appropriations; the size of the program is not determined based on a fixed appropriation, but rather on expenditures incurred for all eligible program participants. Thus expenditures under mandatory programs can be directly reduced by restricting eligibility and thereby reducing the number of people receiving benefits. The ruling sustaining Senator Exon's objection was not appealed by any other Senator. As a result, the definition of "federal means-tested public benefit" was struck from the Senate bill. Moreover, the House acceded to the Senate deletion and agreed to remove its own expansive definition of the term "federal means-tested public benefit" in conference. The conference committee acknowledged the deletion of the definition under the Byrd rule. 142 Cong. Rec. H8927 (daily ed. July 30, 1996). - This legislative record provides strong evidence that the phrase "federal means-tested public benefits," as used in the PRA. should be construed 10 reach only mandatory (and not discretionary) spending programs. In keeping with section 313, a Byrd rule objection was made and sustained. a definition was dropped from the bill in response to the objection, and the House acceded to the Senate version of the bill in light of the Byrd rule objection. To ignore these events in determining the meaning of the phrase "federal means-tested public benefit" would be to disregard the purpose and language of section 313 itself, which serves to facilitate the budgeting process by providing a mechanism by which the scope of reconciliation legislation may be contained. given only to committees that have junsdiction over revenues or direct (mandatory) spending programs"). Thus. the underlying reasoning for objections under (b)(1)(C) and (b): is the same. Some language in one appellate decision night be read to suggest that courts should distinguish between procedural and substantive legislative monvations in inferring congressional intent. See Elizabeth Blackwell Health C:r. for Women v. Knull, 61 F.3d 170. 180 (3d Cir 1995), cert. denied. 116 S. Ct. 816 (1996). The appellees in Elizabeth Blackwell Health Center argued 'hat Congress. by using a rule of House parliamentary procedure to eliminate a provision in the 1994 Hyde Amendment requiring victims of rape or incest to report the crime to the police prior to seeking publicly funded abortions. intended to prohibit state statutes imposing such reporting requirements. The Third Circuit rejected that argument stating that. "{a]t most. the rejection [of the provision] is a sign that Congress did not wish to mandate reporting requirements on the states." and that Congress' rejection. of mandatory reporting requirement "on procedural grounds provides no basis for any inference regarding Congress' views about the substantive provisions of the legislation." 61 F.3d at 180 Unlike here. the procedural objection made in Elizabeth Blackwell Health Center did not in any way suggest that Congress intended the specific interpretation offered in that case. The precedural objection raised to the reporting provision was based upon a House rule of parliamentary procedure that prchibited attempts to "legislate" on an appropriations bill. Id. at 174. The basis for this objection bore no relationship to the substantive interpretation appeliees urged. In contrast. here the definition proffered by HHS and HUD is based upon a budgetary distinction between mandatory and discretionary programs. precisely the same basis upon which Senator Exon's Byrd rule objection was made 7 B. Several aspects of the text and legislative history of the PRA, when viewed in isolation. arguably support a bread interpretation of "federal means-tested public benefit" that would include discretionary programs. Ultimately, however, we find little evidence that Congress. in passing the final version of the bill, intended to reintroduce the very definition that had been struck through the operation of section 313 of the CBA. What evidence does exist is at best ambiguous, and thus, in our view, does not foreclose HHS and HUD, two of the agencies charged with administering the Act, from construing the PRA in the manner that they propose. As previously noted. the PRA. as enacted, contains no definition of the phrase "federal means-tested public benefit." Had Congress intended for this phrase to include discretionary spending programs, over the sustained objection of a member of the Senate, it could have reinserted the deleted definition or similar language in the final version. Indeed, the conference committee did reintroduce a number of other provisions that also had been struck from the Senate bill through Senator Exon's omnibus Byrd rule objection. and Congress ultimately voted to retain these provisions in the final version of the PRA. See § 816 (caretaker exemption; originally § 1126 of S. 1956); § 838 (expedited coupon service; originally § 1148 of S. 1956); § 850 (waiver authority: originally § 1159 of S. 1956); § 729(d) (WIC program/drug abuse: originally $ 1259(d)(1) of S. 1956); § 912 (abstinence education; originally § 2909 of S. 1956); compare with S. 1956 (July 16, 1996 and July 24. 1996 versions). The decision of the conference not to reintroduce the deleted definition of "federal means-tested public benefit" leaves the PRA without the most obvious textual guidance that Congress might have provided had it wished to adopt the previously stricken definition. The PRA does. however, define the related phrase "federal public benefit" broadly, and in a manner that appears to draw no distinction between mandatory and discretionary programs." The phrase "means tested." moreover, though not defined in the statute, is defined in the dictionary." It could be argued that these two phrases combine to produce a : Section 401(c)(1) defines "federal public benefit" as: (A) any grant. contract. loan. professional license. or commercial license provided by an agency of the United States or by appropriated funds of the United States; and (B) any retirement. welfare, health. disability. public cr assisted housing, postsecondary education. food assistance. unempicyment benefit. or any other similar benefit for which payments or assistance are provided 10 an individual. household, or family eligibility unit by an agency of the United States or by appropriated funds of the United States. :4 The dictionary defines "means test as "any examination of the financial state of a person as a condition precedent to receiving social insurance. public assistance benefits, or other payments from public funds." Webster's Third New International Dictionary 1399 (3d ed. 1986). See also Random House Dictionary of the English Language 1192 (21 ed. 1987) ("means rest" is "an investigation into the financial position of a person - 8 - - phrase that is sufficiently plain to make clear that. in enacting the bill, Congress effectively overruled the prior Byrd rule deletions. Although not entirely without force, we find this argument inconclusive. First, even assuming that the phrases "federal public benefit" and "means-tested" are free of ambiguity, the proposition that combining plain terms necessarily results in an equally plain phrase is not at all self-evident. 15 See. e.g.. Smiley V, Citibank, 116 S. Ct. 1730, 1736 (1996). It is not clear, therefore, that, even ignoring the deletion of the broad definition pursuant to the CBA, the bill's final language is so free from ambiguity as to be deemed plain. More important, as we have explained. the PRA was enacted as reconciliation legislation, and thus can be understood only in light of the special rules that Congress set forth in the CBA and the congressional action taken pursuant to those rules. Therefore, the critical question is not whether the phrase "federal means-tested public benefit" is plain when read in isolation, but rather whether the phrase reveals that Congress intended to incorporate the definition that the Senate had deleted, with the House's acquiescence, as a consequence of its compliance with the budgetary rules established by section 313. The PRA's definition of "federal public benefit" does not reveal such an intention. That same definition was already in the bill at the time Senator Exon raised his point of order objecting to the definition of "federal means-tested public benefit." Its inclusion in the final bill, therefore. cannot reasonably be viewed as a rejoinder to Senator Exon's objection. applying for and from public funds") Despite this definition, precisely what constitutes & "means test" in the context of federal programs that distribute benefits on the basis of need is not clear. Some federal programs look w both an applicant's income and his or her resources to determine eligibility. See, e.g., Medicaid program. 42 U.S.C. §§ 1396-1396v: Supplemental Security Income program, 42 U.S.C. §§ 1381-1381a: Food Stamp program. 7 U.S.C. 15 2011-2032. Others look only to income without any inquiry into resources. See, e.g., National School Lunch program. 42 U.S.C. 18 1751-1769b: Women. Infants & Children program. 42 U.S.C. § 1786. Still others presume need OD the basis of area of residence, enrollment in another welfare program. or some other factor. See, e.g., Indian health services. 42 C.F.R. § 36.12 (eligibility based upon area of residence): Commodity Supplemental Food Program. 7 U.S.C. $ 612c note (eligibility based upon enrollment in another government benefit program for low-income persons); Chapter 1 migrant education program. 20 U.S.C. I 6398 (presumption of need for migrant children). is An unrelated provision of the PRA itself hirts at the ambiguity of the phrase "federal means-tested public benefit." Section 911 of the PRA ensures that individuals whose benefits have been reduced because of an act of fraud by the individual may not receive increased benefits under "any other means-tested welfare or public assistance program for which Federal funds are appropriated" as a result of such reduction. The provision then defines the phrase "means-tested welfare or public assistance program for which Federal funds are appropriated" to include "the food stamp program any program of public or assisted housing under title I of the United States Housing Act of 1937 and any state program funded under part A of litle IV of the Social Security Act. The provision does not state whether these programs are intended to be exhaustive or exemplary, but, in any event. the fact that Congress concluded that it was necessary to provide a definition of some sort suggests that Congress did not believe that the meaning of the defined phrase was plain. 9 - Moreover, even apart from the operation of section 313, it is a well-settled canon of interpretation that "where the final version of a statute deletes language contained in an carlier draft, [it may be presumed] that the earlier draft is inconsistent with ultimate congressional intentions." In re Town & Country Home Nursing Servs., Inc., 963 F.2d 1146, 1153 (9th Cir. 1991); see also Russello V. United States, 464 U.S. 16, 23-24 (1983); Gulf Oil Corp. V, Copp Paving Co., 419 U.S. 186, 200 (1974) (Congress' deletion of provision "strongly militates against a judgment that Congress intended a result that it expressly declined to enact"); of. INS V. Cardoza-Fonseca, 480 U.S. 421, 442-43 (1987) ("'Few principles of statutory construction are more compelling than the proposition that Congress does not intend sub silentio to enact statutory language that it has earlier discarded in favor of other language.'") (citations omitted). That canon surely applies with particular force in a context such as this, in which the deletion occurs by reason of an independent congressional statute that governs the nation's budgeting process. A second textual argument that could be made in support of a broader definition arises from the list of exceptions to "federal means-tested public benefit" programs in section 403(c)(2) of the PRA. The inclusion of some discretionary programs in this list of exceptions would be unnecessary unless the term itself included such programs. As an initial matter, we note that the logic of this argument proves too much, particularly in light of other drafting flaws that appear in the Act. The same provision that excepts certain discretionary programs from the limitation on eligibility for "federal means-tested public benefits," for example, also excepts certain programs specified by the Attorney General that are not conditioned on "the individual recipient's income or resources." § 403(c)(2)(G). The view that Congress would not have excepted a program that was not otherwise covered would erroneously suggest that "means-tested" must be a more expansive term than the phrase "condition[ed] on the individual recipient's income or resources." More to the point, the List of exceptions included in section 403(c)(2) is quite plausibly understood as an inconsistency resulting from the proper operation of the Byrd rule itself. The remedy provided in section 313 is a blunt instrument offering a basis for striking extraneous material in a reconciliation bill. but no mechanism for re-drafting remaining legislative provisions to conform them to the legislation as revised by application of the Byrd rule. Indeed, there was no careful mark-up of the bill following the deletion of the definition of "federal means-tested public benefit." where inconsistent provisions might have been brought into conformity. 16 Similar inconsistencies appear in other provisions of the PRA as 1 result of Byrd rule deletions. For example. the family cap provision of S: 1956. see § 103 of July 16 version of S. 1956 (establishing new section 408(a)(2) of TANF program). was deleted through a Byrd rule objection. The conference report notes this deletion and the provision does not appear in the final version of the PRA 142 Cong. Rec. H8903 (daily ed. July 30, 1996). Nevertheless. a reference to the family cap provision remains. in § 103 of the PRA (establishing new § 402(a)(7) of title IV of the SSA). which permits states to waive program requirements in cases of domestic violence. - 10 - Moreover, it is unlikely that members of Congress would have seen the list of exceptions as obviously inconsistent with the PRA as revised by application of the Byrd rule. The categorization of particular programs as mandatory or discretionary is not at all obvious, and it is likely that many, if not most, members did not know precisely which programs fell into which category.¹⁷ In addition, the list of exceptions can be seen as Congress' attempt to safeguard certain programs from any definitional skirmishes and ensure their exception." We are also unpersuaded that the legislative history of the PRA supports the conclusion that Congress intended to enact extraneous material through the reconciliation process over the sustained objection of a member of the Senate. Although noting that the definition of "federal means-tested public benefit" was deleted from the bill through operation of section 313, the conferees' report on the PRA nonetheless asserts that "it is the intent of the conferees that [the deleted] definition be presumed to be in place for purposes of this title." 142 Cong. Rec. H8927 (daily ed. July 30, 1996). We believe that this statement in the conferees' report cannot be taken as controlling. As noted above, "[f]ew principles of statutory construction are more compelling than the proposition, that Congress does not intend sub silentio to enact statutory language that it has earlier discarded in favor of other language." Cardoza-Fonseca, 480 U.S. at 442-43 (citations omitted). Here, this rule cannot plausibly give way to contrary legislative history. Both houses of Congress deleted the definition of "federal means-tested public benefit": the Senate did so on the basis of the CBA, and the House acceded to the Senate. A conference committee cannot essentially overrule those decisions by including contrary language in its report. To permit this to occur not only would run counter to the canon against construing a statute to include terms that Congress had earlier discarded, id., but, even more fundamentally, would undermine the rules that were established with such care in section 313, which permit a Sepator to object to extraneous material that the conference might include in the legislation itself, but provide no mechanism for correcting the conference's 17 In fact. during Senate consideration of the conference version of the bill, Senator Graham confirmed, for himself and for any other members that might no: have analyzed the list of excepted programs. that the post- conference version of the bill was consistent with the Senate's earlier Byrd rule objections. defining -federal means-tested public benefit' as applicable only to mandatory programs. See infra note 20. 18 As a result, we do not believe it to be significant that the final version of the PRA also included exceptions for two discretionary programs that did not appear in the Senate version of the PRA from which the broad definition of "federal means-tested public benefit" had been deleted. Specifically, the Head Stan and Job Training programs were only included in the House's final list of exempted programs. and not the Senate's. even though they do appear in the final version of § 403(c)(2). The inclusion of these two additional exceptions does not change our conclusion because there is no reason to believe that the inclusion of exceptions for these particular discretionary programs. more than the exceptions for the other discretionary programs. was intended to do more than safeguard them from further definitional disagreements. In any event. the inclusion in the final bill of two additional discretionary programs seems to us a most oblique means for Congress to reinsert a definition of "federal means-tested public benefit" that had previously been struck. - 11 explanatory statement. 19 Finally, subsequent Senate colloquy admittedly an insubstantial grounding for legislative intent if standing alone confirms the understanding that a definition that would have extended the term to encompass discretionary programs was deleted because it was outside the subject matter scope of the reconciliation process. 20 We thus conclude that the legislative record provides strong support for the proffered construction of the PRA and that the inconsistencies noted above, while giving rise to some .9 Section 313 permits a Byrd rule objection to be made at various points throughout the legislative process. including after the bill has been reported out of conference. 2 U.S.C. & 644(c). Thus. the statute allows for the possibility that Congress might attempt 10 reinsert a deleted provision into a bill during conference. and provides the Senate with the opportunity to renew its Byrd rule objection if it insists upon the deletion. However, because a Byrd rule objection can be raised only against legislative language. not against explanatory statements in the conference report, see § 644(a). allowing a conference report statement to act as the equivalent of legislative language effectively abolishes the statutory mechanism established to ensure the integrity of the Byrd rule process. 30 Specifically, in the debate over the conference report on the Senate floor. Senator Graham sought to confirm the exact scope of the term "federal means-tested public benefit. After reviewing the history of the Byrd rule objection and the Pariiamentarian's ruling, Senator Graham engaged Senstor Kennedy in the following colloquy: Mr. Graham: [W]ould the Senator agree that. when the Senate struck these sections as violating the Byrd rule, the Senate's intent was to prevent the denial of services in appropriated programs such as those that provide services to victims of domestic violence and child abuse, the maternal and child health block grant. social services block grant. community health centers and migrant health centers? Mr. Kennedy Yes. Under the Byrd rule. the budget reconciliation process cannot be used to change discretionary sponding programs. Only mandatory spending is affected. 142 Cong. Rec. S9400 (daily ed. Aug. 1. 1996). Senator Graham subsequently asked Senator Exon. who was one of the Senate conferees on the bill. whether "the version of the bill recommended in this conference report is consistent with this understanding." !d. Senator Exon confirmed that it was. Later during the debate, Senator Graham raised this issue again with another conferee. Senator Chafee: Mr. Granam: I wonder if my colleague could address one point on this bill. I notice that the term "Federal means-tested public benefit" was defined in previous versions of the bill. However, in this conference report no definition is provided. Mr. Chafee: [W]hen the bill was considered in conference. I understand that there was an intentional effort to ensure this provision complied with [the] Byrd rule by omitting the definition of that particular term. In other words. then. the term "Federal means-rested public benefit" - if it is to be in compliance with the Byrd rule -- does not refer to discretionary programs Id. at S9403. 12 - ambiguity, are insufficient to rebut the evidence that Congress intended to reach only mandatory spending programs. We, accordingly, turn to the second step of the Chevron inquiry. II. Chevron Step II Under the second step of the Chevron analysis, two questions arise. First, it is necessary to determine whether Congress intended for agencies or courts to resolve the ambiguity that Congress, either intentionally or inadvertently, failed to resolve. See Adams Fruit Co. V. Barrett, 494 U.S. 638, 649 (1990) ("[a] precondition to deference under Chevron is a congressional delegation of administrative authority"); see also Johnson V. United States R.R. Retirement Bd., 969 F.2d 1082, 1088 (D.C. Cir. 1992) ("If agencies are simply interpreting a statute, but have not been granted the power to 'administer' it, the principle of deference applies with less force."), cert. denied, 507 U.S. 1029 (1993). Second, if Congress intended for agencies to resolve the ambiguity, then it is necessary to determine whether the proposed agency interpretation is "permissible." Chevron, 467 U.S. at 843.21 If Congress intended for the agencies to resolve the interpretive ambiguity, and the agency resolution is permissible, then the agency construction is binding. See id. A. Congress need not expressly authorize agencies to construe ambiguous statutory terms in order for courts to be bound by agency constructions. In Chevron itself, for example, the Court deferred to an Environmental Protection Agency ("EPA") construction of the Clean Air Act, even though no statutory language expressly empowered that agency to impose a binding interpretation of the term "stationary source." The Court simply inferred that Congress must have intended for the EPA, as the agency entrusted with administering the Clean Air Act, to resolve the policy choices that inhere in the interpretation of ambiguous statutory language. See Chevron, 467 U.S. at 843. The Court explained that this inference was reasonable because agencies generally possess superior expertise and greater political accountability than courts. See id. at 865-66. On the other hand, Congress may impliedly authorize courts to interpret a particular statutory provision, even though an agency has been generally charged with administering the 21 Although the Court stated in Cardoza-Fonseca that Cbevron-deference does not apply to pure questions of law. such as the one at issue here. it has subsequently retreated from this position. Our memorandum proceeds on the assumption that Chevron applies to such questions. Cardoza-Fonseca, 480 U.S. at 454-55 (Scalia, J., concurring). = Even if Congress has not entrusted the interpretative function to an agency. courts should still give careful consideration to agency constructions that are based on expertise and to which they have consistently adhered. See, e.g., Atchison, Topeka and Santa Fe Ry. V. Pena. 44 F.3d 437, 445 (7th Cir. 1994) (Easterbrook. J. concurring). aff'd sub com, Brotherhood of Locomotive Engineers V. Atchison, Topeka & Santa Fe Ry., 116 S. Ct. 595 (1996). 13 - statute as a whole. In Adams Fruit Co., for example, the Court refused to defer to the Department of Labor's resolution of the question whether exclusivity provisions in state worker compensation laws trumped a federal private right of action under the Migrant and Seasonal Agricultural Worker Protection Act, 29 U.S.C. §§ 1801-1872 ("Worker Protection Act"). Even though the Department was responsible for administering the Worker Protection Act generally, the Court concluded that Congress intended for the judiciary, not the agency, to construe the contours of the private right of action that the Worker Protection Act created. See Adams Fruit Co., 494 U.S. at 649. The Court based that conclusion primarily on the fact that the Department was not required to interpret the private right of action provisions as an incident of its general administration of the Worker Protection Act, as those provisions established a parallel and independent enforcement mechanism. See id. at 649-50. In our view, the delegation question presented here is more analogous to Chevron than to Adams Fruit Co. Although the PRA does not expressly delegate general administrative authority to HHS, HUD, or, for that matter, to any other particular agency, the PRA effectively amends the statutes that establish the assistance programs over which HHS, HUD and other federal agencies have already been delegated administrative authority. Because those agencies possess general administrative authority to interpret eligibility criteria set forth in statutes enacted prior to the PRA. we believe it to be a fair inference that Congress intended for the changes effected by the PRA to be administered in the same manner. In an analogous context, the Third Circuit deferred to HHS' construction of the Hyde Amendment, even though, as the dissent in that case pointed out, the Hyde Amendment does not expressly delegate administrative authority to any agency. Compare Elizabeth Blackwell Health Ctr. for Women, 61 F.3d at 182, with id. at 196 (Nygaard, J., dissenting). The court concluded that HHS' authority to administer the Medicaid statute necessarily included the authority to construe legislation that amended the Medicaid statute's eligibility requirements. Id. at 182; see also Fort Wayne Community Schools V. Fort Wayne Educ. Ass'n. 977 F.2d 358, 365 (7th Cir. 1992) (deferring to Postal Service's construction of a criminal statute on the ground that it was "intimately connected" to the purposes of the statute that Postal Service was charged with administering), cert. denied, 510 U.S. 826 (1993); Associated Third Class Mail Users V, United States Postal Serv., 600 F.2d 824, 826 n.5 (D.C. Cir.), cen. denied, 444 U.S. 837 (1979) (same). The case for deference is even stronger here, moreover, because the PRA not only amends the eligibility requirements for the programs that these agencies administer, but also expressly assigns these agencies the responsibility of informing the public of the changes in those eligibility requirements that the PRA effects. Section 404(a) of the PRA requires federal agencies that administer assistance programs to provide the public with information - 14 about how the PRA changes the eligibility requirements for those programs. 23 This assignment, we believe, impliedly delegates to these agencies the authority to resolve the meaning of the phrase "federal means-tested public benefit": agencies must first interpret the meaning of the term "federal means-tested public benefit" in order to comply with section 404(a)'s mandate to inform the public of the PRA's impact on eligibility requirements. Only by determining whether that term applies to both mandatory and discretionary assistance programs (among other questions of application) will agencies be able to determine who is eligible for the programs that they already administer pursuant to separate statutory delegations. Section 404(a)'s notification requirement serves a useful function, moreover, only to the extent that the agencies are able to provide accurate information about the eligibility changes that the PRA mandates. If courts are free to reject reasonable agency interpretations of that term, then agencies will be forced to risk providing inaccurate eligibility information or to refrain from providing complete eligibility information altogether. Because neither result seems consistent with the purpose behind section 404(a), it is proper to infer that Congress intended for the agencies to provide the authoritative construction of the term "federal means-tested public benefit" when it assigned them the notification task set forth in section 404(a). In light of the agencies' statutorily assigned responsibilities, the agencies cannot fairly be viewed as "trying to 'bootstrap' [themselves] into an area in which [they have] no jurisdiction" in seeking deference for their construction of the term "federal means-tested public benefit." Wagner Seed Co. V. Bush, 946 F.2d 918, 923 (D.C. Cir. 1991), cert. denied, 503 U.S. 970 (1992) (citation omitted). Rather, they are offering an interpretation that results from the "intimate connection" between the purposes of the statutes that the agencies already administer and those of the PRA generally, Fort Wayne Community Schools, 977 F.2d at 365, and that arises in connection with the "special duty" that section 404(a) of the PRA assigns them. See FLRA V. Department of Treasury, 884 F.2d 1446, 1451 (D.C. Cir. 1989), cen. denied, 493 U.S. 1055 (1990). We are aware of those cases that assert that courts should not defer to statutes that are "general" in nature or that are subject to interpretation by more than one agency. See, e.g., Johnson V. United States R.R. Retirement Bd., 969 F.2d at 1088 (citing cases). We do not believe that this rule of construction should appiy here. The rule has been invoked primarily in cases in which agencies seek Chevron deference for their construction of statutes that have been expressly entrusted to other agencies for administration, see id.; Cheney R.R. V, Railroad Retirement Bd., 50 F.3d 1071, 1073-74 (D.C. Cir. 1995), that are designed to ensure that agencies remain publicly accountable or proceed in a fair manner, see. e.g., Professional Reactor Operator Soc'y V. United States Nuclear Regulatory Comm'n, 939 F.2d 1047, 1051 (D.C. Cir. 1991); see Air North Am. V. Department of Transp., 937 F.2d 1427. 1436 (9th Cir. 1991), or that are not intimately connected to the mission of the agency that 23 "Each Federal agency that administers a program to which section 401, 402, or 403 applies shall. directly or through the States, post information and provide general notification to the public and to program recipients of the changes regarding eligibility for any such program pursuant to this subtitle." 110 Stat. at 2267. - 15 seeks deference. See. e.g., Professional Airways Sys. Specialists V, FLRA, 809 F.2d 855, 857 n.6 (D.C. Cir. 1987). The results in these cases are, therefore, best explained as particular applications of the justifiable presumption that Congress does not intend for courts to be bound by agency constructions that are beyond agency expertise, see, e.g., Colorado Nurses Ass'n V. FLRA, 851 F.2d 1486, 1488 (D.C. Cir. 1988), or that concern provisions that are designed to ensure agencies proceed in a fair and accountable manner. see Air North Am. V. Department of Transp., 937 F.2d at 1436. These cases do not establish, in our view, a general presumption in favor of judicial resolution of all statutory ambiguities that confront more than a single agency. Indeed, Chevron's emphasis on the greater political accountability of agencies counsels against a rule of construction that would afford judges the last word on the meaning of any statute that does not authorize a single agency to administer it. See Chevron, 467 U.S. at 865-66. Where, as here, a statute assigns a group of agencies a particular task that is related to the duties that the agencies already have been assigned by their governing statutes, Congress may be presumed to have intended for these agencies to resolve any ambiguities that may arise. That the PRA does not assign any particular agency primary interpretive responsibility does not change the analysis. Congress may have intended for the courts to resolve the meaning of the term "federal means-tested public benefit" in the event of unresolved interpretive conflicts among the agencies identified by section 404. There is no reason to suppose, however, that Congress intended for unelected judges to countermand a unanimous resolution of the policy question by the agencies closest to it. Cf. American Fed'n of Gov't Employees Y. FLRA, 2 F.3d 6. 10 (2d Cir. 1993) ("[W]hen two agencies, each examining statutes they are charged with administering, agree as to the interplay of the statutes, there is no more reason to mistrust their congruent resolutions than there is to mistrust action taken by a single agency[.] see also Salleh V. Christopher, 85 F.3d 689 (D.C. Cir. 1996) (suggesting that joint agency interpretations may deserve deference); cf. Lieberman V, FTC, 771 F.2d 32, 37 (2d Cir. 1985) (declining to defer to joint agency construction but noting that Congress may delegate "dual lawmaking authority"). So long as the agencies identified by section 404(a) concur in their interpretation of the term "federal means-tested public benefit," therefore, we believe that courts would be bound to accord that interpretation Chevron deference. Finally, we do not believe that the deference that the agencies receive under Chevron should turn on whether their construction of the term "federal means-tested public benefit" would be deemed an "interpretative" or "legislative" rule under the Administrative Procedure Act. We agree with those courts that have concluded that Chevron deference turns solely on whether the agency's interpretation may fairly be understood to be one for which Congress intended judicial deference to apply. see, e.g., Elizabeth Blackwell Health Ctr. for Women, 61 F.3d at 182; id., at 190-96 (Nygaard J., dissenting) (reviewing conflicting caselaw); Kelley V. EPA, 15 F.3d 1100, 1108 (D.C. Cir. 1994), cert. denied, 115 S. Ct. 900 (1995); see generally Robert A. Anthony, Which Agency Interpretations Should Bind Citizens and the Courts?, 7 Yale J. on Reg. 1 (1990), and not on whether the proposed construction is 16 S9400 CONGRESSIONAL RECORD-SENATE August 1, 1996 there will no longer be any mechanism Mr. GRAHAM. Is this consistent with tion of the Senate, and I thank the for guaranteeing a national safety net the understanding of the Senator from Senators for their efforts. for our poorest families. Nebraska as well? Mr. LEVIN. Mr. President, today, the I am concerned that the work re- Mr. EXON. Yes. As ranking minority Senate will reach a milestone in the quirements in the bill can not be met. member of the Budget Committee, I long and sometimes twisting journey of States that do not meet employment have been concerned to ensure that the welfare reform legislation. The Senate goals will lose part of their block budget reconciliation process is limited will pass this bill. as the House of Rep- grants. Penalties would rise from 5 per- to affecting mandatory spending and is resentatives did yesterday. The Presi- cent in the first year to 21 percent in not misused to achieve other objec- dent has told the Nation that he will the ninth year. The Congressional tives. Budget reconciliation's depar- sign it, and soon it will become law. I Budget Office has already reported that ture from ordinary Senate rules of de- will vote in favor of this bill because it most States will be unable to meet the bate must be carefully limited to its is a step toward ending the present Bys- work requirements. This legislation original and proper purpose. Our col- tem which simply does not work and lacks the necessary commitment or re- leagues on the other side of the aisle replacing it with a system which re- sources to help people move from pov- shared this view when they agreed to quires and rewards work. I wish, how- erty to meaningful employment. It strike the offending. provisions from ever, that we had before us a reform does not provide any specific funding the Senate bill. bill which I could wholeheartedly. for States to help people find or train Mr. GRAHAM. Would the Senator without reservation, endorse and sup- themselves for better-paying jobs. agree that the version of the bill rec- port. I would greatly prefer a bill, for Rather than moving people off welfare ommended in this conference report is example, like the work first legislation and onto work, this bill emphasizes consistent with this understanding? which contained a Federal safety net cutting off welfare. Mr. EXON. Yes. These provisions for children and which I cosponsored While I support reform that promotes stayed out of the bill in conference, as with Senator DASCHLE and many of my personal responsibility and community the conferees sought to avoid another colleagues or even like the bipartisan initiatives, I cannot support legislation challenge on the Senate floor that Biden-Specter approach which I voted which undermines the national safety for in the Senate. these provisions violated the Byrd rule. net and reduces resources for hungry The bill before us is an improvement This manifests our intent to keep this over the legislation which I opposed families. bill within the proper parameters of Mr. GRAHAM. Mr. President, during last year and which the President ve- budget reconciliation. consideration of the Senate reconcili- toed because, among other things, it Mr. President, changes in discre- ation bill, two definitions regarding provides more support for child care, tionary programs on a reconciliation immigrants, section 2403(c)(1), and in retains needed child protection pro- bill, such as the ones mentioned by the section 2423, section 213(A)(f)(2), were grams and services, includes my Senator from Florida and the Senator stricken because they contained mate- amendment strengthening the work re- from Massachusetts, result in no direct rial that was not under the jurisdiction quirement, does not block grant food budgetary savings and are therefore ex- of the Finance Committee. Specifically stamp assistance, requires a greater traneous under the Byrd rule. maintenance of effort from the States, the definitions denied all means-tested During floor consideration of this and doubles the contingency fund to benefits to immigrants including bene- legislation, we struck section 2403(c)(1), help States in times of economic down- fits subject to appropriations. and in section 2423, section 213(A)(f)(2) The Parliamentarian also agreed turn. However, it contains a number of because they contained material that that the provisions violated another serious flaws. That is why it is a mile- was not under the jurisdiction of the section of the Byrd rule, section stone and not a final destination. It Finance Committee, namely many dis- 313(b)(1)(D). Section 313(b)(1)(D) pro- will need repairs. As the President has cretionary programs, because they vio- hibits language in a reconciliation bill indicated, there are aspects of this leg- lated section 313(b)(1)(C) of the Budget or conference report if the deficit re- islation which the Congress will be re- Act. These provisions also provide no duction is merely incidental to the quired to revisit. And beyond that, I budgetary savings, and violating the larger policy changes contained within believe that this kind of sweeping re- intent of section 313(b)(1)(A) of the form involves an element of risk. Al- the provision. The Parliamentarian Budget Act, but because they were agreed that since the reconciliation though our efforts are directed toward cleverly embedded in language which process is confined to mandatory improving the system, recognizing did provide direct budgetary savings, it spending, expanding the scope of provi- within the welfare system the principle was difficult to fully enforce the Byrd sions to include benefits provided by of the value of work, assuring the pro- rule. Nonetheless, it is clear that this discretionary spending was a violation tection of children and reasserting the bill should not be used to make responsibility of absent parents to of the Byrd rule. The conferees were certainly notified changes in discretionary programs, and their children, we cannot possibly be about these rulings and the offending those who look to interpret the action sure that all the effects of such sweep- provisions were not included in the of the Congress should take this into ing reform will be those intended. For account. conference report. that reason, the Congress must remain Moreover, would the Senator agree Mr. President, the purpose of the vigilant in its oversight and monitor- that, when the Senate struck these sec- Byrd rule is to prevent reconciliation ing of the impacts of this legislation. tions as, violating the Byrd rule, the bills from being loaded up with provi- We must stand ready to address nega- Senate's intent was to prevent the de- sions, such as these, that have no budg- tive impacts. If critics are fully correct nial of services in appropriated pro- etary impact. This is important be- and there is a large increase in the grams such as those that provide serv- cause reconciliation bills move in the numbers of American children who find ices to victims of domestic violence Senate under special rules which limit themselves impoverished, we must and child abuse, the maternal and child amendment and time for debate. With- stand ready to remedy quickly the de- health block grant, social services out the protections provided by the fects in this bill. block grant, community health centers Byrd rule, it would be far too easy to For a number of years, I have been and migrant health centers? Does the take advantage of the privileged nature working toward reform of the welfare Senator agree that recipients of appro- of reconciliation to enact controversial system. The existing system has failed. priated funds are not forced to conduct items without proper consideration in It does not serve families and children checks on citizenship and immigration the Senate. Allowing reconciliation to well. It does not serve the American status when providing community be used in this manner fundamentally taxpayer well. It was created to meet services? undermines the basic nature of the the needs of families in hard times. Un- Mr. KENNEDY. Yes. Under the Byrd Senate's rules which protect the voice fortunately, for far too many, what was rule, the budget reconciliation process of the minority and damages the Sen- intended as a safety net has too often cannot be used to change discretionary ate as an institution. become a way of life, a cycle of depend spending programs. Only mandatory For this reason, I feel it is important ency. It 18 wrong to allow such a sys spending 18 affected. to bring these provisions to the atten- tem to continue. August 1, 1996 CONGRESSIONAL RECORD-SENATE S9403 that from the day they receive their ment requires States to reserve a por- food stamps, Medicaid, and other as- first check, the clock will be ticking. tion of their social service block grant sistance for legal immigrants; it has no Society is fulfilling an obligations to funds for programs and services that good place in a welfare-to-work bill. help them get back on their feet, and educate young people about the con- As the President has urged, we must they in turn are obligated to make sequences of premarital pregnancy. As keep these issues in mind for repair in every effort to receive job training or we reduce the number of teens who be- the future even as we recognize that education and to find employment. The come pregnant, we will be increasing this legislation 18 definitely an im- employment of parents will enrich the number of children who are able to provement in the current welfare pro- their children not only financially, but enjoy a childhood without deprevation. gram. In voting for this bill, we will re- morally as well. In watching their par- There are other aspects of this legis- alize an historic opportunity to meet ents benefit from educational opportu- lation which have been framed with the President Clinton's call to "end welfare nities and engage in gainful employ- protection of children in mind. For ex- as we know it." We will have also prov- ment, children may embrace a valuable ample, minor children continue to re- en to the American people that the work ethic and eventually be better ceive Medicaid even If their parents Federal Government is capable of able to free themselves from the cycle lose coverage as a penalty for not get- bringing about change through biparti- of poverty and welfare dependence in ting off of welfare into job training and san cooperation. which they are currently entrapped. work, Families can also be eligible for, -This is not the end of welfare reform States will also have an incentive to transitional Medicaid coverage as they. but it is the largest step forward we help beneficiaries find work. Welfare move from welfare to work. These pro- have taken to improve the way Amer- offices should become employment of- visions are vital as many parents cur- ica cares for its poor, and tries to make fices as States strive to move recipi- rently. refrain from finding jobs and real for them the dreams of equal op- ents into the work force in order to moving off welfare for fear of dosing portunity, which is the driving impulse earn a "performance bonus from the the medical coverage for their children of our history Federal Government that welfare provides. thank the Chair and yield the floor. The conference bill also holds the Mr. President, this bill provides a Mr: GRAHAM. I wonder if my col- hope of protecting children and reduc- significant improvement over the Sen- league could address one point on this ing welfare spending by attacking the ate-passed bill in allowing States to bill. I notice that the term "Federal problem of unmarried teen parenthood. provide needy children of parents who means-tested public benefit" was de- Welfare will no longer encourage the go off of welfare with vouchers through fined in previous versions of the bill. proliferation of single and uneducated the title XXblock grant. The legisla- However, in this conference report, no parents by automatically and uncondi- tion also answers the all-important definition is provided. tionally underwriting the mothers who question of who will care for the chil- Mr. CHAFEE. It is my understanding bear children out of wedlock. Children dren as their mothers and fathers move that the Parliamentarian noted that born out of wedlock are shown by stud- into the world of education and work. the previous definitions of "Federal ies to be three times more likely to be We have designated $13.8 billion-a sub- means-tested public benefit" were on welfare as adults than their peers. stantial increase-to be spent just on broad enough to include discretionary By implementing this bill, however, child care over the next 6 years, and we spending. According to the Par- the Federal Government will require have retained child care health and liamentarian, that inclusion caused the States to combat this problem and safety standards. Moveover, we will not definition to violate Section hopefully prevent it in a number of penalize mothers with children under 313(b)(1)(D) of the Byrd rule, which pre- ways. First, paternity must be estab- the next 6 years, and we have retained vents reconciliation legislation from lished for all children born out of wed- child care health and safety standards. extending its scope to items that pro- lock at birth as a condition for receiv- Moreover, we will not penalize mothers vide merely incidental deficit reduc- ing assistance, and fathers will be re- with children under the age of 6 who do tion, that is, discretionary programs. quired to pay child support and set a not accept employment because they Therefore, when the bill was consid- good example for their children by en- cannot find or afford child care. I ered in conference, I understand that gaging in either private sector or com- would have preferred the retention of there was an intentional effort to en- munity service jobs. Mothers must live the Senate provision in this regard sure this provision complied with Byrd with an adult parent or relative or in which allowed the mothers of children rule by omitting the definition of that an adult-supervised, strictly run Sec- age 6 to 11 who cannot find adequate, particular term. ond Chance Home where they can learn `affordable child care to stay home with In other words, then, the term "Fed- skills necessary to the proper manage- them without penalty. eral means-tested public benefit"-if it ment and care of a child and household. Mr. President, this is a good bill-a is to be in compliance with the Byrd A further condition of receiving assist- giant step forward from the welfare rule-does not refer to discretionary ance is a commitment to educational status quo-but it is no more perfect programs. I would assume that pro- advancement. Young mothers must than any other bill that has passed the grams such as funding for community stay in a school or training program as Senate on a big, complicated problem. health centers, as well as the maternal a condition of continuing to receive I am especially concerned by the food and child health block grant, would not welfare checks. stamp provision which is a real break be impacted. This welfare reform bill will addi- with what was agreed to in the Senate- Mr. GRAHAM. I thank the Senator tionally work to prevent a new genera- passed bill. It limits the receipt of food for clarifying that point. tion from entering into the cycle of stamps by jobless individuals who do Mr. DOMENICI. Mr. President, I be- early parenthood and welfare depend- not have children to 3 months out of a lieve our last Senator, other than the ence by making it a national goal to 3-year period and allows no hardship leader and myself. is Senator THUR- lower teen pregnancy rates. It estab- exemptions. This is far harsher than MOND, and he would like 8 minutes. We lishes a national campaign that will as- the Senate provision which allowed have plenty of time, so I give him 8 sure the creation of teen pregnancy jobless individuals to receive food minutes. prevention programs in at least 25 per- stamps for 6 months out of each year The PRESIDING OFFICER. The Sen- cent of American communities by 1997. as well as a 20-percent hardship exemp- ator from South Carolina: It includes two amendments which I tion. Food stamps are also now cut for Mr. THURMOND. Mr. President, I authored with the intent of combating households receiving energy assistance, rise in support of the conference report this problem. One will require the Jus- a proposal not included in the Senate to H.R. 3734, the Personal Responsibil- tice Department as well as the States bill The conference report also cuts ity and Work Opportunity Reconcili- to crack down on what studies show is the cap on the shelter deduction by $42 ation Act of 1996. This legislation re- a class of older men-many of them and takes away food stamps for more forms welfare to emphasize fundamen- predatory-who father the children of families with children who pay over tal American values. It rewards work young girls in the majority of teen half their income for housing. And I re- and self reliance, promotes personal re- pregnancy cases. The second amend- main very concerned about the ban on sponsibility, and renews a sense of hope NATURALES Office of the Assistant Secretary DEPARTMENT OF HEALTH & HUMAN SERVICES for Legislation Washington, D.C. 20201 July 21, 1997 The Honorable Lamar Smith, Chairman House Judiciary Subcommittee on Immigration B-307B Rayburn House Office Building Washington, D.C. 20515 Dear Chairman Smith: As you requested, attached is a list of HHS discretionary funded programs in which eligibility for benefits is conditioned on recipients income and/or resources. Please contact me if you have any further questions. Sincerely, In A Su Irene B. Bueno Deputy Assistant Secretary for Legislation (Congressional Liaison) Enclosure DRAFT DRAFT DRAFT HHS DISCRETIONARY FUNDED PROGRAMS IN WHICH ELIGIBILITY FOR BENEFITS IS CONDITIONED ON RECIPIENT'S INCOME AND/OR RESOURCES (Some Programs May Be Exempted Specifically From Section 403 of PRWORA)¹ HRSA Aids Drug Assistance Program (ADAP) ACF Community Services Block Grant Program Job Opportunities for Low-Income Individuals Program ORR Programs -- Refugee Cash Assistance -- Refugee Medical Assistance Low Income Home Energy Assistance Program Residential Energy Assistance Challenge Grants "Special Circumstance " Programs Head Start (90 percent of enrollees must meet income eligibility criteria, 10 percent do not need to meet income criteria) -- Migrant Head Start -- Comprehensive Child Development Centers Child Care (while recipients must meet income eligibility criteria, the program is funded with both discretionary appropriations and mandatory spending) I For example, benefits under the Head Start Act are specifically exempted under section 403(c)(2)(J), and therefore Migrant Head Start and Comprehensive Child Development Centers are specifically exempted from the definition of "Federal means-tested public benefits" since they are authorized under the "Head Start Act". In addition, programs may also be exempted if they provide public health assistance for immunizations, are authorized under titles III, VII, and VIII of the Public Health Service Act, or are in-kind services necessary for the protection of life or safety (Attorney General exception--section 403(c)(2)(G)). We need guidance on how to issue the definition of Federal means-tested public benefit. As you know, the definition of Federal means-tested public benefit provides the framework for eligibility of qualified aliens for benefit programs. Under this definition, the benefit restrictions for Federal means-tested public benefits would only apply to mandatory programs and not discretionary programs. This memo presents (1) administrative options for issuing the definition of Federal means-tested public benefit, and (2) the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) policy implications. To summarize the issues explained below, OIRA believes that issuances for the mandatory programs may be subject to SBREFA regardless of which option is chosen. HRD believes separate agency issuances, properly prepared, would not be subject to SBREFA. HRD also believes that if the issuances are reviewed in draft to ensure uniformity, the OLC's concerns may be satisfied. Options on How to Issue the Definition: Common The Civil Division at DOJ recommended a "common rule" approach which Rule would provide a stronger legal position in case of litigation. (They believe this approach would be helpful, although not essential, for defense of the definition.) The Office of Legal Counsel at DOJ stressed the need for uniformity in implementing the definition. Exchange of When approached, OIRA suggested an exchange of letters which would Letters provide legal defense for a unified definition within the Federal government. (This would not be considered a rule thus not subject to SBREFA.) After the exchange of letters, an agency could release the definition through any means they determine is appropriate for them. Given that an earlier exchange of letters occurred between agencies that led to the OLC opinion, in the RMO's view a second exchange would not appear to significantly strengthen the Administration's legal position. Since over a month has passed since the letter idea was developed, OIRA staff agree with the RMO that the issuance of the definition is overdue. Lead One agency could promulgate the definition in a rule. (For example, the INS Agency Affidavit of Support interim final rule which contains a definition for means- tested public benefit -- Federal, state and local levels.) Guidance The DOJ Interim Verification Guidance could also be a vehicle for release of the definition. Although, DOJ believes this option could have Chevron problems because DOJ is not the lead agency for benefit programs. Separate Agencies could individually issue the definition in either guidance or Issuances rulemaking. The guidance may be considered an interpretive rule. SBREFA Implications: Among the key issues are whether agency guidance will be considered a rule, and thus sent to the Hill for review; and whether any rulemaking will be considered a major rule under SBREFA. Rules are major, in general, if the impact on the economy is more than $100 million, which subjects them to a 60-day delayed effective date that can be waived and requires GAO to write a report. Congress has the same opportunity to review and challenge rules regardless of whether they are major. There are two different approaches to determine the impact the definition has on discretionary programs: (1) the impact is the difference between current practice and implementation of the policy -- impact is therefore zero; (2) the impact is the difference between including and not including discretionary programs into the definition of means-tested public benefit. OIRA staff do not believe the discretionary programs are likely to have a net effect in excess of $100 million regardless of which approach is used. For mandatory means tested programs, OIRA believes the mandatory programs will potentially be major under SBREFA due to an impact over $100 million annually. When reviewing rules that merely implement statutory language, the costs are calculated by comparing the world with and without the law. In the case of Medicaid, if neither HCFA nor HHS do anything further there is nothing to be subject to SBREFA. HRD believes the definition will not trigger the major rule for the following reasons: HCFA already issued guidance that recognized Medicaid as a means tested program. HHS has not issued guidance for TANF but the financial consequences to states from this program alone would not exceed $100 million annually. For SSI and Food Stamps, the ban until citizenship elsewhere in the bill makes the means tested provision incidental. EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF THE PRESIDENT SIATES AND R THE UNITED OFFICE OF management AND BUDGET WASHINGTON, D.C. 20503 October 14, 1997 F Means Tea ADMINISTRATOR OFFICE OF INFORMATION AND means Tested REGULATORY AFFAIRS MEMORANDUM FOR ERSKINE BOWLES THROUGH: Franklin D. Raines FOR Benefits FROM: Sally Katzen. R SUBJECT: Heads-up on DOJ/INS Affidavit of Support Interim Final Rule On July 2, 1997, we circulated a heads-up memo on an INS interim final rule requiring sponsors of immigrants to file an affidavit of support that will enable Federal, State, and local governments to recoup the costs of any "means-tested benefits" received by the immigrants. The rule will be published (finally) in the Federal Register at the end of this week. I have attached a copy of our July 2 heads-up memo to refresh your memory on the substance. Please give me a call if you have any questions. cc: Maria Echaveste Rahm Emanuel John Hilley Ann Lewis Thurgood Marshall, Jr. Sylvia Mathews Bruce Reed Elena Kagan Victoria Radd Barry Toiv Michael Waldman Kathy Wallman Josh Gotbaum Michael Deich Larry Haas E PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OF STATES THE UNITED OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 July 2, 1997 ADMINISTRATOR OFFICE OF INFORMATION AND REGULATORY AFFAIRS MEMORANDUM FOR ERSKINE BOWLES THROUGH: Franklin D. Raines JXR FROM: Sally Katzem SK SUBJECT: Heads-up on DOJ/INS Affidavit of Support Interim Final Rule We have just completed review of an Immigration and Naturalization Service interim final rule that implements part of the recently enacted Immigration reform law by requiring sponsors of immigrants to file an affidavit of support that will enable Federal, State, and local governments to recoup the costs of any "means-tested benefits" received by the immigrants. It has taken an interagency group (including OMB, DOJ, and DPC) several months to work through the issue of how to define "means-tested" at both the Federal and State levels. To oversimplify the matter, the group decided to define "means-tested" for Federal purposes as programs funded under mandatory spending rules (as distinct from discretionary programs). For State benefit purposes (not including any Federal contribution), the group left it entirely up to the States to define the term, so long as they notify the sponsors of their definition. This rule will not go unnoticed by some on the Hill, but it appears to be the right result. Please call me if you have any questions. cc: Maria Echaveste Rahm Emanuel John Hilley Ann Lewis Thurgood Marshall, Jr. Sylvia Mathews Bruce Reed Victoria Radd Barry Toiv Michael Waldman Kathy Wallman Ken Apfel Michael Deich Larry Haas 07/23/97 15:28 002 Elena, INS is currently undergoing a rulemaking to develop regulations to implement Affidavit of Support requirements. As far as I am aware, this rulemaking is the first matter facing the Administration since the Printz (Brady Law) decision that requires assessment of the case's effect on ongoing federal regulatory programs. After prodding form DOJ, INS, as the attached memo attests, is attempting to construe the underlying statute to avoid Printz concerns. Whether that construction will avoid adverse Hill reaction (or a legal challenge) is another question. Anyway, I thought you might want to be aware of the matter both because of the nature of the specific rulemaking at issue and because of the implications that this matter may have for other federal programs. Thanks. Dell Diana - - You've move up w then issues than 1 am. Could you look this wer and tell me what you think? Note especially my question m P.3- - what should we Think of an administratic intervetratic that makes gives states + led apencies The choice of whether to proceed benetits? a jainst a spentor Pu reimburrement of Elena cc:Pruce 07/23/97 15:28 003 JUL-18-1997 16:59 OMB DEP DIR MGMT 202 395 6974 P.03/06 Memorandum HQCOU 120/17.3 -C Subject: Date: To: Seth Waxman, Acting Deputy Attorney General and Sally Katzen, Administrator Office DRAFT the Commissioner of Information and Regulatory Affairs, OMB Since the passage of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, the Immigration and Naturalization Service has been working closely with the Office of Management and Budget, other components of the Department of Justice, and other Federal Agencies to develop a new enforceable Affidavit of Support and a regulation to implement it. The resolution of many difficult legal and policy issues needed to be coordinated among these agencies, and by the end of June the new affidavit of support form and regulation were approved- by OMB. cleared However, on June 27, 1997, the Supreme Court decided Printz V. United States, a landmark decision invalidating the portions of the Brady Handgun Control Act which required State and local law enforcement officials to conduct background checks on persons purchasing handguns. In Printz the Court held that "[t]he Federal Government may neither issue directives requiring the States to address particular problems, nor command the States' officers, or those of their political subdivisions, to administer or enforce a federal regulatory program." This decision has required a reassessment of the affidavit of support regulation because of the effect on States of provisions relating to the definition of "means-tested public benefits" and the enforcement of the affidavit. Based on our assessment of the Printz case and the relevant legal and policy issues, the INS has determined that the approach outlined in this memorandum would be the best course for the INS to follow in implementing the affidavit of support. This memorandum sets forth INS policy preferences on three issues. First, how should the affidavit of support address the definition of "Federal means-tested public benefit?" Second, how should the affidavit of support address the definition of "State means-tested public benefits?" Third, how should INS interpret the reimbursement provisions of section 213A(b)(1)(A) of the Immigration and Nationality Act in light of the Printz case? The memorandum also requests advice from the Office of Legal Counsel on the constitutional questions surrounding these determinations. 07/23/97 15:29 004 JUL-18-1997 16:59 OMB DEP DIR MGMT 202 395 6974 P.04/06 In arriving at the decisions outlined in this memorandum, the INS has attempted to balance four important considerations: 1) the need for a definition of "means-tested public benefit" that reflects determinations by Federal and State agencies concerning which of their programs are means-tested; 2) the need to provide aliens and sponsors with adequate notice of which benefits will cause a sponsor to be liable for reimbursement if an alien receives them; 3) the need to implement the affidavit of support in a way that respects States' rights and avoids creating serious questions about the constitutionality of the affidavit of support statute and regulation; and 4) the need to implement an affidavit of support that is enforceable to the extent permitted by law. FEDERAL MEANS-TEST PUBLIC BENEFITS The regulation will define a "Federal means-tested public benefit" as any public benefit funded in whole or in part with Federal funds that is defined as a "means-tested public benefit" by the Federal agency implementing the Federal funds. The regulation will also state that no benefit described in sections 401(b), 411(b), 422(b), or 423(d) of Public Law 104-193 (Welfare Reform) may be considered a "means-tested public benefit." These sections identify, respectively, which benefits are exempt from the general prohibition on the receipt of benefits by non-qualified aliens, which benefits are exempt from State deeming, and which benefits are not subject to reimbursement under the affidavit of support. The regulation will make specific reference to any definition of "Federal means-tested public benefit" published by a Federal agency at the time the regulation is issued. The INS assumes that the Department of Health and Human Services will publish such a definition in some form prior to or simultaneous with the publication of the affidavit of support regulation The INS will also list in an attachment to the affidavit of support (Form I-864) any Federal programs which have been identified by the benefit agencies as being "Federal means-tested public benefits." This policy both permits Federal benefit agencies to define which benefits are "means-tested public benefits" and gives sponsors and aliens adequate notice of what kinds of programs will give rise to a sponsor's obligation to reimburse a Federal agency. It also helps to ensure that the affidavit of support will be fully enforceable with respect to Federal benefits. STATE MEANS-TESTED PUBLIC BENEFITS The regulation will define "State means-tested public benefit" as any public benefit for which no Federal funds are provided that a State, State agency, or political subdivision of a State defines as a "means-tested public benefit." The regulation will again state that no benefit described in sections 401(b), 411(b), 422(b), or 423(d) of Public Law 104-193 may be considered a "means- tested public benefit." The regulation will also contain language indicating that States should publish notice of what benefits they consider to be "means-tested public benefits" as soon as possible and preferably prior to the date that the law requires the affidavit of support to be filed with immigrant visa and adjustment of status applications. This policy maximizes State participation and autonomy in the process of determining which benefits are "means-tested" and minimizes the chance that the regulation will be challenged as an unconstitutional requirement that States take action to implement a federal program. It also 2 07/23/97 15:30 005 JUL-18-1997 17:00 OMB DEP DIR MGMT 202 395 6974 P.05/06 encourages States to provide sponsors and aliens with proper notice and allows States to fully enforce the reimbursement provisions of the new law. THE REIMBURSEMENT PROVSIONS AND THE PRINTZ CASE In light of the Printz case, a potential constitutional conflict arises because of the language in section 213A(b)(1)(A), which reads: [u]pon notification that a sponsored alien has received any means-tested public benefit, the appropriate nongovernmental entity which provided such benefit or the appropriate entity of the Federal Government, a State, or any political subdivision of a State shall request reimbursement by the sponsor in an amount which is equal to the unreimbursed costs such benefit (Emphasis added.) If read literally and in isolation, this subparagraph appears to require Federal agencies, State agencies, and nongovernmental entities to request reimbursement for all means-tested public benefits given to aliens who have sponsors that signed an affidavit of support Read in this way, section 213A(b)(1)(A) could well be held unconstitutional under the holding in Print. because it commands State officials to take specific action in what could be considered the control of immigration, a Federal program. Operating under the general principle that statutes should be construed to avoid serious constitutional problems, the INS would prefer to interpret section 213A(b)(1)(A) as requiring only that reimbursement be requested as a precondition to an agency bringing legal action against the sponsor under section 213A(b)(2). Section 213A(b)(1)(A) would thus be read not to create a requirement that Federal, State and nongovernmental entities request reimbursement in all cases ) where an alien receives a means-tested public benefit. This interpretation makes the statute far less vulnerable to constitutional challenge than a literal reading of the statute, which would view it as creating an obligation that States request reimbursement in all cases. States are unlikely to challenge an interpretation of the statute that gives them the power to determine whether or not to request reimbursement, and they would be action unlikely to win any such challenge. This reading increases State authority and makes affidavit more enforceable because its enforcement will be less vulnerable to challenge in the courts. EFFORTS TO ENSURE STATE ENFORCEMENT ti the se reim for OK? t mentes and Because the above policies are designed to maximize State authority and to avoid potentially serious constitutional challenges to the affidavit of support regulation, they do not require States to provide public notice of a definition of "State means-tested public benefits" nor to request reimbursement in all cases. To help guarantee full enforcement of the affidavit of support and ensure that sponsors receive adequate notice, the INS will undertake an aggressive public education campaign to inform States of their responsibilities and mobilize them to publish notice of benefits considered to be "means-tested" and aggressively enforce the affidavits of support. 3 07/23/97 15:30 006 JUL-18-1997 17:00 OMB DEP DIR MGMI 202 sys 5974 r.00700 REQUEST FOR LEGAL ADVICE The INS requests that the Office of the Legal Counsel advise the INS in writing regarding the following questions: 1) do the policies outlined in this memorandum raise any significant constitutional concerns? 2) would a policy interpreting INA section 213A(b)(1)(A) as requiring State, Federal and nongovernmental agencies to request reimbursement in all cases in which they are informed that an alien has received a means-tested public benefit raise significant constitutional concerns? 3) would a policy of making enforcement of the affidavit of support contingent on a State having issued public notice prior the to date an affidavit is filed raise significant constitutional concerns? I look forward to further discussion with you. DRAFT Doris Meissner Commissioner 4 TOTOI = DC