NOTICE: This opinion is subject to formal revision before
publication in the preliminary print of the United States
Reports. Readers are requested to notify the Reporter of Decisions,
Supreme Court of the United States, Washington, D. C. 20543,
of any typographical or other formal errors, in order that
corrections may be made before the preliminary print goes to
press.
SUPREME COURT OF THE UNITED STATES
_________________
No. 14–15
_________________
RICHARD ARMSTRONG, et al., PETITIONERS
v.
EXCEPTIONAL CHILD CENTER, INC., et al.
on writ of certiorari to the united states court of appeals for
the ninth circuit
[March 31, 2015]
Justice Scalia delivered the opinion of the Court, except as to
Part IV.
We consider whether Medicaid providers can sue to enforce
§(30)(A) of the Medicaid Act. 81Stat. 911 (codified as amended at
42 U. S. C. §1396a(a)(30)(A)).
I
Medicaid is a federal program that subsidizes the States’
provision of medical services to “families with dependent children
and of aged, blind, or disabled individuals, whose income and
resources are insufficient to meet the costs of necessary medical
services.” §1396–1. Like other Spending Clause legislation,
Medicaid offers the States a bargain: Congress provides federal
funds in exchange for the States’ agreement to spend them in
accordance with congressionally imposed conditions.
In order to qualify for Medicaid funding, the State of Idaho
adopted, and the Federal Government approved, a Medicaid “plan,”
§1396a(a), which Idaho administers through its Department of Health
and Welfare. Idaho’s plan includes “habilitation services”—in-home
care for individuals who, “but for the provision of such services
. . . would require the level of care provided in a
hospital or a nursing facility or intermediate care facility for
the mentally retarded the cost of which could be reimbursed under
the State plan,” §1396n(c) and (c)(1). Providers of these services
are reimbursed by the Department of Health and Welfare.
Section 30(A) of the Medicaid Act requires Idaho’s plan to:
“provide such methods and procedures relating to the utilization
of, and the payment for, care and services available under the plan
. . . as may be necessary to safeguard against
unnecessary utilization of such care and services and to assure
that payments are consistent with efficiency, economy, and quality
of care and are sufficient to enlist enough providers so that care
and services are available under the plan at least to the extent
that such care and services are available to the general population
in the geographic area . . . .” 42
U. S. C. §1396a(a)(30)(A).
Respondents are providers of habilitation services to persons
covered by Idaho’s Medicaid plan. They sued petitioners—two
officials in Idaho’s Department of Health and Welfare—in the United
States District Court for the District of Idaho, claiming that
Idaho violates §30(A) by reimbursing providers of habilitation
services at rates lower than §30(A) permits. They asked the court
to enjoin petitioners to increase these rates.
The District Court entered summary judgment for the providers,
holding that Idaho had not set rates in a manner consistent with
§30(A).
Inclusion, Inc. v.
Armstrong, 835
F. Supp. 2d 960 (2011). The Ninth Circuit affirmed. 567 Fed.
Appx. 496 (2014). It said that the providers had “an implied right
of action under the Supremacy Clause to seek injunctive relief
against the enforcement or implementation of state legislation.”
Id., at 497 (citing
Independent Living Center of Southern
Cal. v.
Shewry, 543 F. 3d 1050, 1065 (CA9 2008)).
We granted certiorari. 573 U. S. ___ (2014).
II
The Supremacy Clause, Art. VI, cl. 2, reads:
“This Constitution, and the Laws of the United States which
shall be made in Pursuance thereof; and all Treaties made, or which
shall be made, under the Authority of the United States, shall be
the supreme Law of the Land; and the Judges in every State shall be
bound thereby, any Thing in the Constitution or Laws of any State
to the Contrary notwithstanding.”
It is apparent that this Clause creates a rule of decision:
Courts “shall” regard the “Constitution,” and all laws “made in
Pursuance thereof,” as “the supreme Law of the Land.” They must not
give effect to state laws that conflict with federal laws.
Gibbons v.
Ogden, 9 Wheat. 1, 210 (1824). It is
equally apparent that the Supremacy Clause is not the
“ ‘source of any federal rights,’ ”
Golden State
Transit Corp. v.
Los Angeles, 493 U. S. 103, 107
(1989) (quoting
Chapman v.
Houston Welfare Rights
Organization, 441 U. S. 600, 613 (1979) ), and certainly
does not create a cause of action. It instructs courts what to do
when state and federal law clash, but is silent regarding who may
enforce federal laws in court, and in what circumstances they may
do so.
Hamilton wrote that the Supremacy Clause “only declares a truth,
which flows immediately and necessarily from the institution of a
Federal Government.” The Federalist No. 33, p. 207 (J. Cooke ed.
1961). And Story described the Clause as “a positive affirmance of
that, which is necessarily implied.” 3 Commentaries on the
Constitution of the United States §1831, p. 693 (1833). These
descriptions would have been grossly inapt if the Clause were
understood to give affected parties a constitutional (and hence
congressionally unalterable) right to enforce federal laws against
the States
. And had it been understood to provide such
significant private rights against the States, one would expect to
find that mentioned in the preratification historical record, which
contained ample discussion of the Supremacy Clause by both
supporters and opponents of ratification. See C. Drahozal, The
Supremacy Clause: A Reference Guide to the United States
Constitution 25 (2004); The Federalist No. 44, at 306 (J. Madison).
We are aware of no such mention, and respondents have not provided
any. Its conspicuous absence militates strongly against their
position.
Additionally, it is important to read the Supremacy Clause in
the context of the Constitution as a whole. Article I vests
Congress with broad discretion over the manner of implementing its
enumerated powers, giving it authority to “make all Laws which
shall be necessary and proper for carrying [them] into Execution.”
Art. I, §8. We have said that this confers upon the
Legislature “that discretion, with respect to the means by which
the powers [the Constitution] confers are to be carried into
execution, which will enable that body to perform the high duties
assigned to it,”
McCulloch v.
Maryland, 4 Wheat. 316,
421 (1819). It is unlikely that the Constitution gave Congress such
broad discretion with regard to the enactment of laws, while
simultaneously limiting Congress’s power over the manner of their
implementation, making it impossible to leave the enforcement of
federal law to federal actors. If the Supremacy Clause includes a
private right of action, then the Constitution
requires
Congress to permit the enforcement of its laws by private actors,
significantly curtailing its ability to guide the implementation of
fed-eral law. It would be strange indeed to give a clause that
makes federal law supreme a reading that
limits Congress’s
power to enforce that law, by imposing mandatory private
enforcement—a limitation unheard-of with regard to state
legislatures.
To say that the Supremacy Clause does not confer a right of
action is not to diminish the significant role that courts play in
assuring the supremacy of federal law. For once a case or
controversy properly comes before a court, judges are bound by
federal law. Thus, a court may not convict a criminal defendant of
violating a state law that federal law prohibits. See,
e.g.,
Pennsylvania v.
Nelson, 350 U. S. 497, 499, 509
(1956) . Similarly, a court may not hold a civil defendant liable
under state law for conduct federal law requires. See,
e.g.,
Mutual Pharmaceutical Co. v.
Bartlett, 570 U. S.
___, ___–___ (2013) (slip op., at 13–14). And, as we have long
recognized, if an individual claims federal law immunizes him from
state regulation, the court may issue an injunction upon finding
the state regulatory actions preempted.
Ex parte Young, 209
U. S. 123 –156 (1908).
Respondents contend that our preemption
jurisprudence—specifically, the fact that we have regularly
considered whether to enjoin the enforcement of state laws that are
alleged to violate federal law—demonstrates that the Supremacy
Clause creates a cause of action for its violation. They are
incorrect. It is true enough that we have long held that federal
courts may in some circumstances grant injunctive relief against
state officers who are violating, or planning to violate, federal
law. See,
e.g., Osborn v.
Bank of United
States, 9 Wheat. 738, 838–839, 844 (1824);
Ex parte
Young,
supra, at 150–151 (citing
Davis v.
Gray, 16 Wall. 203, 220 (1873)). But that has been true not
only with respect to violations of federal law by state officials,
but also with respect to violations of federal law by federal
officials. See
American School of Magnetic Healing v.
McAnnulty, 187 U. S. 94, 110 (1902) ; see generally L.
Jaffe, Judicial Control of Administrative Action 152–196 (1965).
Thus, the Supremacy Clause need not be (and in light of our textual
analysis above, cannot be) the explanation. What our cases
demonstrate is that, “in a proper case, relief may be given in a
court of equity . . . to prevent an injurious act by a
public officer.”
Carroll v.
Safford, 3 How. 441, 463
(1845).
The ability to sue to enjoin unconstitutional actions by state
and federal officers is the creation of courts of equity, and
reflects a long history of judicial review of illegal executive
action, tracing back to England. See Jaffe & Henderson,
Judicial Review and the Rule of Law: Historical Origins, 72
L. Q. Rev. 345 (1956). It is a judge-made remedy, and we have
never held or even suggested that, in its application to state
officers, it rests upon an implied right of action contained in the
Supremacy Clause. That is because, as even the dissent implicitly
acknowledges,
post, at 4 (opinion of Sotomayor, J.) it
does not. The Ninth Circuit erred in holding otherwise.
III
A
We turn next to respondents’ contention that, quite apart from
any cause of action conferred by the Supre-macy Clause, this suit
can proceed against Idaho in equity.
The power of federal courts of equity to enjoin unlawful
executive action is subject to express and implied statutory
limitations. See,
e.g., Seminole Tribe of Fla. v.
Flor-ida, 517 U. S. 44, 74 (1996) . “ ‘Courts of
equity can no more disregard statutory and constitutional
requirements and provisions than can courts of law.’ ”
INS v.
Pangilinan, 486 U. S. 875, 883 (1988)
(quoting
Hedges v.
DixonCounty, 150 U. S. 182,
192 (1893) ; brackets omitted). In our view the Medicaid Act
implicitly precludes private enforcement of §30(A), and respondents
cannot, by invoking our equitable powers, circumvent Congress’s
exclusion of private enforcement. See
Douglas v.
Independent Living Center of Southern Cal., Inc., 565
U. S. ___, ___–___ (2012) (Roberts, C. J., dissenting)
(slip op., at 4–5).
Two aspects of §30(A) establish Congress’s “intent to foreclose”
equitable relief.
Verizon Md. Inc. v.
Public Serv. Comm’n
of Md., 535 U. S. 635, 647 (2002) . First, the sole remedy
Congress provided for a State’s failure to comply with Medicaid’s
requirements—for the State’s “breach” of the Spending Clause
contract—is the withholding of Medicaid funds by the Secretary of
Health and Human Services. 42 U. S. C. §1396c. As we have
elsewhere explained, the “express provision of one method of
enforcing a substantive rule suggests that Congress intended to
preclude others.”
Alexander v.
Sandoval, 532
U. S. 275, 290 (2001) .
The provision for the Secretary’s enforcement by withholding
funds might not,
by itself, preclude the availability of
equitable relief. See
Virginia Office for Protection and
Advocacy v.
Stewart, 563 U. S. 247 , ___–___, n. 3
(2011) (slip op., at 7–8, n. 3). But it does so when combined
with the judicially unadministrable nature of §30(A)’s text. It is
difficult to imagine a requirement broader and less specific than
§30(A)’s mandate that state plans provide for payments that are
“consistent with efficiency, economy, and quality of care,” all the
while “safeguard[ing] against unnecessary utilization of
. . . care and services.” Explicitly conferring
enforcement of this judgment-laden standard upon the Secretary
alone establishes, we think, that Congress “wanted to make the
agency remedy that it provided exclusive,” thereby achieving “the
expertise, uniformity, widespread consultation, and resulting
administrative guidance that can accompany agency decisionmaking,”
and avoiding “the comparative risk of inconsistent interpretations
and misincentives that can arise out of an occasional inappropriate
application of the statute in a private action.”
Gonzaga
Univ. v.
Doe, 536 U. S. 273, 292 (2002) (Breyer,
J., concurring in judgment). The sheer complexity associated with
enforcing §30(A), coupled with the express provision of an
administrative remedy, §1396c, shows that the Medicaid Act
precludes private enforcement of §30(A) in the courts.
B
The dissent agrees with us that the Supremacy Clause does not
provide an implied right of action, and that Congress may displace
the equitable relief that is traditionally available to enforce
federal law. It disagrees only with our conclusion that such
displacement has occurred here.
The dissent insists that, “because Congress is undoubtedly aware
of the federal courts’ long-established practice of enjoining
preempted state action, it should generally be presumed to
contemplate such enforcement unless it
affirmatively
manifests a contrary intent.”
Post, at 4 (emphasis added).
But a “long-established practice” does not justify a rule that
denies statutory text its fairest reading. Section 30(A), fairly
read in the context of the Medicaid Act, “display[s] a[n] intent to
foreclose” the availability of equitable relief.
Verizon,
supra, at 647. We have no warrant to revise Congress’s
scheme simply because it did not “affirmatively” preclude the
availability of a judge-made action at equity. See
Seminole
Tribe,
supra, at 75 (inferring, in the absence of an
“affirmative” statement by Congress, that equitable relief was
unavailable).
Equally unavailing is the dissent’s reliance on §30(A)’s
history. Section 30(A) was amended, on December 19, 1989, to
include what the dissent calls the “equal access mandate,”
post, at 9—the requirement that reimbursement rates be
“sufficient to enlist enough providers so that care and services
are available under the plan at least to the extent that such care
and services are available to the general population in the
geographic area.” §6402(a), 103Stat. 2260. There existed at the
time another provision, known as the “Boren Amendment,” that
likewise imposed broad requirements on state Medicaid plans. 42
U. S. C. §1396a(a)(13)(A) (1982 ed., Supp. V). Lower
courts had interpreted the Boren Amendment to be privately
enforceable under §1983. From this, the dissent infers that, when
Congress amended §30(A), it could not “have failed to anticipate”
that §30(A)’s broad language—or at least that of the equal access
mandate—would be interpreted as enforceable in a private action.
Thus, concludes the dissent, Congress’s failure to
expressly
preclude the private enforcement of §30(A) suggests it intended
not to preclude private enforcement.
Post, at 10.
This argument appears to rely on the prior-construction canon;
the rule that, when “judicial interpretations have settled the
meaning of an existing statutory provision, repetition of the same
language in a new statute” is presumed to incorporate that
interpretation.
Bragdon v.
Abbott, 524 U. S.
624, 645 (1998) . But that canon has no application here. The
language of the two provisions is nowhere near identical; and even
if it had been, the question whether the Boren Amendment permitted
private actions was far from “settled.” When Congress amended
§30(A) in 1989, this Court had already granted certiorari to
decide, but had not yet decided, whether the Boren Amendment could
be enforced through a §1983 suit. See
Baliles v.
Virginia
Hospital Assn., 493 U. S. 808 (Oct. 2, 1989) (granting
certiorari). Our decision permitting a §1983 action did not issue
until June 14, 1990—almost six months after the amendment to
§30(A).
Wilder v.
Virginia Hospital Assn., 496
U. S. 498 .[
1]* The existence of a granted
petition for certiorari demonstrates quite clearly that the
question whether the Boren Amendment could be pri-vately enforced
was
unsettled at the time of §30(A)’s 1989 amendment—so that
if Congress was aware of the parallel (which is highly doubtful)
the course that awareness would have prompted (if any) would not
have been legislative silence but rather express specification of
the availability of private enforcement (if that was what Congress
intended).
Finally, the dissent speaks as though we leave these plaintiffs
with no resort. That is not the case. Their relief must be sought
initially through the Secretary rather than through the courts. The
dissent’s complaint that the sanction available to the Secretary
(the cut-off of funding) is too massive to be a realistic source of
relief seems to us mistaken. We doubt that the Secretary’s notice
to aState that its compensation scheme is inadequate will be
ignored.
IV
The last possible source of a cause of action for respondents is
the Medicaid Act itself. They do not claim that, and rightly so.
Section 30(A) lacks the sort of rights-creating language needed to
imply a private right of action.
Sandoval,
supra at
286–287. It is phrased as a directive to the federal agency charged
with approving state Medicaid plans, not as a conferral of the
right to sue upon the beneficiaries of the State’s decision to
participate in Medicaid. The Act says that the “Secretary shall
approve any plan which fulfills the conditions specified in
subsection (a),” the subsection that includes §30(A). 42
U. S. C. §1396a(b). We have held that such language
“reveals no congressional intent to create a private right of
action.”
Sandoval,
supra at 289; see also
Universities Research Assn., Inc. v.
Coutu, 450
U. S. 754, 772 (1981) . And again, the explicitly conferred
means of enforcing compliance with §30(A) by the Secretary’s
withholding funding, §1396c, suggests that other means of
enforcement are precluded,
Sandoval,
supra, at
290.
Spending Clause legislation like Medicaid “is much in the nature
of a contract.”
Pennhurst State School and Hospital v.
Halderman, 451 U. S. 1, 17 (1981) . The notion that
respondents have a right to sue derives, perhaps, from the fact
that they are beneficiaries of the federal-state Medicaid
agreement, and that intended beneficiaries, in modern times at
least, can sue to enforce the obli-gations of private contracting
parties. See 13 R. Lord, Williston on Contracts §§37:12–37.13, pp.
123–135 (4th ed. 2013). We doubt, to begin with, that providers are
intended beneficiaries (as opposed to mere incidental
beneficiar-ies) of the Medicaid agreement, which was concluded for
the benefit of the infirm whom the providers were to serve, rather
than for the benefit of the providers themselves. See
Pharmaceutical Research and Mfrs. of America v.
Walsh, 538 U. S. 644, 683 (2003) (Thomas, J.,
concurring in judgment). More fundamentally, however, the modern
jurisprudence permitting intended beneficiaries to sue does not
generally apply to contracts between a private party and the
government,
Astra USA, Inc. v.
Santa Clara County,
563 U. S. ___, ___ (2011) (slip op., at 6); see Williston,
supra, at §§37:35–37:36, at 256–271; 9 J. Murray, Corbin on
Contracts §45.6, p. 92 (rev. ed. 2007)—much less to contracts
between two governments. Our precedents establish that a private
right of action under federal law is not created by mere
implication, but must be “unambiguously conferred,”
Gonzaga,
536 U. S., at 283. Nothing in the Medicaid Act suggests that
Congress meant to change that for the commitments made under
§30(A).
* * *
The judgment of the Ninth Circuit Court of Appeals is
reversed.
It is so ordered.
Comments
Be the first to comment
Leave a Comment