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Full Opinion
The United States
The government appealed and moved to stay the injunction pending resolution of the merits. After extensive briefing and more than two hours of oral argument, a motions panel denied the stay after determining that the appeal was unlikely to succeed on its merits. Texas v. United States, 787 F.3d 733, 743 (5th Cir.2015). Reviewing the district courtâs order for abuse of discretion, we affirm the preliminary injunction because the states have standing; they have established a substantial likelihood of success on the merits of their procedural and substantive APA claims; and they have satisfied the other elements required for an injunction.
I.
A.
In June 2012, the Department of Homeland Security (âDHSâ) implemented the -Deferred Action for Childhood Arrivals program (âDACAâ).
In November 2014, by what is termed the âDAPA Memo,â DHS expanded DACA by making millions more persons eligible for the program
âLawful presenceâ is not an enforceable right to remain in the United States and can be revoked at any time, but that classification nevertheless has significant legal consequences. Unlawfully present aliens are generally not eligible to receive federal public benefits, see 8 U.S.C. § 1611, or state and local public benefits unless the state, otherwise provides, see 8 U.S.C. § 1621.
âEach person who applies for deferred action pursuant to the [DAPA] criteria ... shall also be eligible to apply for work authorization for the [renewable three-year] period of deferred action.â DAPA Memo at 4. The United States concedes that â[a]n alien with work authorization may obtain a Social Security Number,â âaccrue quarters of covered employment,â and âcorrect wage records to add prior covered employment within approximately three years of the year in which the wages were earned or in limited circumstances thereafter.â
As for state benefits, although â[a] State may provide that an alien who is not lawfully present in the United States is eligible for any State or local public benefit for which such alien would otherwise be ineligible under subsection (a),â § 1621(d), Texas has chosen not to issue driverâs licenses to unlawfully present aliens.
B.
The states sued to prevent DAPAâs'im-plementation on three grounds. First, they asserted that DAPA violated the procedural requirements of the APA as a substantive rule that did not undergo the requisite notice-and-comment rulemaking. See 5 U.S.C. § 553. Second, the states claimed that DHS lacked the authority to implement the program even if it followed the correct rulemaking process, such that DAPA was substantively unlawful under the APA. See 5 U.S.C. § 706(2)(A)-(C). Third, the states urged that DAPA was an abrogation of the Presidentâs constitutional duty to âtake Care that the Laws be faithfully executed.â U.S. Const, art. II, § 3.
The district court held that Texas has standing. It concluded that the state would suffer a financial injury by having to issue driverâs licenses to DAPA beneficiaries at a loss. Dist. Ct. Op., 86 F.Supp.3d at 616-23. Alternatively, the court relied on a new theory it called âabdication standingâ; Texas had standing because the United States has exclusive authority over immigration but has refused to act in that
The court temporarily enjoined DAPAâs implementation after determining that Texas had shown a substantial likelihood of success on its claim that the program must undergo notice and comment. Id. at 677. Despite full briefing, the court did not rule on the âPlaintiffsâ likelihood of success on their substantive APA claim or their constitutional claims under the Take Care Clause/separation of powers doctrine.â Id. On appeal, the United States maintains that the states do not have standing or a right to judicial review and, alternatively, that DAPA is exempt from the notice-and-comment requirements. The government also contends that the injunction, including its nationwide scope, is improper as a matter of law.
II.
âWe review a preliminary injunction for abuse of discretion.â
(1) a substantial likelihood of success on the merits, (2) a substantial threat of irreparable injury if the injunction is not issued, (3) that the threatened injury if the injunction is denied outweighs any harm that will result if the injunction is granted, and (4) that the grant of an injunction will not disserve the public interest.22
âAs to each element of the district courtâs preliminary-injunction analysis ... findings of fact are subject to a clearly-erroneous standard of review, while conclusions of law are subject to broad review and will be reversed if incorrect.â
III.
The government claims the states lack standing to challenge DAPA. As we will analyze, however, their standing is plain, based on the driverâs-license rationale,
As the parties invoking federal jurisdiction, the states have the burden of establishing standing. See Clapper v. Amnesty Intâl USA, â U.S. -, 133 S.Ct. 1138, 1148, 185 L.Ed.2d 264 (2013). They must show an injury that is âconcrete, particularized, and actual or imminent; fairly traceable to the challenged action; and redressable by a favorable ruling.â Id. at 1147 (citation omitted). âWhen a litigant is vested with a procedural right, that litigant has standing if there is some possibility that the requested relief will
A.
We begin by considering whether the states are entitled to âspecial solicitudeâ in our standing inquiry under Massachusetts v. EPA They are.
The Court held that Massachusetts had standing to contest the EPAâs decision not to regulate greenhouse-gas emissions from new motor vehicles, which allegedly contributed to a rise in sea levels and a loss of the stateâs coastal land. Massachusetts v. EPA, 549 U.S. at 526, 127 S.Ct. 1438. âIt is of considerable relevance that the party seeking review here is a sovereign State and not ... a private individualâ because âStates are not normal litigants for the purposes of invoking federal jurisdiction.â Id. at 518,127 S.Ct. 1438.
The Court identified two additional considerations that entitled Massachusetts âto special solicitude in [the Courtâs] standing analysis.â Id., at 520, 127 S.Ct. 1438.
The partiesâ dispute turns on the proper construction of a congressional statute, a question eminently suitable to resolution in federal court. Congress has moreover authorized this type of challenge to EPA action. That authorization is of critical importance to the standing inquiry: âCongress has the power to define injuries and articulate chains.of causation that will give rise to a case or controversy where none existed before.â âIn exercising this power, however, Congress must at the very least identify the injury it seeks to vindicate and relate the injury to the class of persons entitled to bring suit.â We will not, therefore, âentertain citizen suits to vindicate the publicâs nonconcrete interest in the proper administration of the laws.â[27 ]
Second, the EPAâs decision affected Massachusettsâs âquasi-sovereignâ interest in its territory:
When a State enters the Union, it surrenders certain sovereign prerogatives. Massachusetts cannot invade Rhode Island to force reductions in greenhouse gas emissions, it cannot ne*152 gotiate an emissions treaty with China or India, and in some circumstances the exercise of its police powers to reduce in-state motor-vehicle emissions might well be pre-empted.
These sovereign prerogatives are now lodged in the Federal Government, and Congress has ordered EPA to protect Massachusetts (among others) by prescribing standards applicable to the âemission of any air pollutant from any class or classes of new motor vehicle engines, which in [the Administratorâs] judgment cause, or contribute to, air pollution which may reasonably be anticipated to endanger public health or welfare.â28
Like Massachusetts, the instant plaintiffs â the states â âare not normal litigants for the purposes of invoking federal jurisdiction,â id. at 518, 127 S.Ct. 1438 and the same two additional factors are present. First, â[t]he partiesâ dispute turns on the proper construction of a congressional statute,â
In enacting the APA, Congress intended for those âsuffering legal wrong because of agency actionâ to have judicial recourse,
As we will show, DAPA would have a major effect on the statesâ fiscs, causing
Second, DAPA affects the statesâ âquasi-sovereignâ interests by imposing substantial pressure on them to change their laws, which provide for issuing driverâs licenses to some aliens and subsidizing those licenses.
Moreover, these plaintiff statesâ interests are like Massachusettsâs in ways that implicate the same sovereignty concerns. When the states joined the union, they surrendered some of their sovereign prerogatives over immigration.
The significant opinion in Arizona State Legislature v. Arizona Independent Redistricting Commission, â U.S. -, 135 S.Ct. 2652, 192 L.Ed.2d 704 (2015), announced shortly before oral argument herein, reinforces that conclusion. The Court held that the Arizona Legislature had standing to sue in response to a ballot initiative that removed its redistricting authority and vested it instead in an independent commission. Id. at 2665-66. The Court emphasized that the legislature was âan institutional plaintiff asserting an institutional injuryâ to what it believed was its constitutional power to regulate elections. Id. at 2664. So too are the states asserting institutional injury to their lawmaking authority. The Court also cited Massachusetts v. EPA as opining that the state in that case was âentitled to special solicitude in our standing analysis.â Id. at 2664-65 n. 10 (quoting Massachusetts v. EPA, 549 U.S. at 520, 127 S.Ct. 1438).
The United States suggests that three presumptions against standing apply here. The first is a presumption that a plaintiff lacks standing to challenge decisions to confer benefits on, or not to prosecute, a third party. But the cases the government cites for that proposition either did not involve standing;
The second presumption is against justi-ciability m the immigration context. None of the cases the government cites involved standing
The third presumption is that â[t]he [Supreme] Courtâs standing analysis ... has been âespecially rigorous when reaching the merits of the dispute would force [the Court] to decide whether an action taken by one of the other two branches of the Federal Government was unconstitutional.â â
Therefore, the states are entitled to âspecial solicitudeâ in the standing inquiry. We stress that our decision is limited to these facts. In particular, the direct, substantial pressure directed at the states and
B.
At least one state â Texasâhas satisfied the first standing requirement by demonstrating that it would incur significant costs in issuing driverâs licenses to DAPA beneficiaries. Under current state law, licenses issued to beneficiaries would necessarily, be at a financial loss. The Department of Public Safety âshall issueâ a license to a qualified applicant. Tex. Transp. Code § 521.181. A noncitizen âmust present ... documentation issued by the appropriate United States agency that authorizes the applicant to be'in the United States.â Id. § 521.142(a).
If permitted to go into effect, DAPA would enable at least 500,000 illegal aliens in Texas
Instead of disputing those figures, the United States claims that the costs would be offset by other benefits to the state. It theorizes that, because DAPA beneficiaries would be eligible for licenses, they would register their vehicles, generating income for the state, and buy auto insurance, reducing the expenses associated with uninsured motorists. The government suggests employment authorization would lead to increased tax revenue and decreased reliance on social services.
Even if the government is correct, that does not negate Texasâs injury, because we consider only those offsetting benefits that are of the same type and arise from the same transaction as the costs.
The one case in which we concluded that the costs of a challenged program were offset by the benefits involved a much tighter nexus. In Henderson, 287 F.3d at 379-81, we determined that taxpayers lacked standing to challenge a Louisiana law authorizing a license plate bearing a pro-life message, reasoning that the plaintiffs had not shown that the program would use their tax dollars, because the extra fees paid by drivers who purchased the plates could have covered the associated expenses. The costs and benefits arose out of the same transaction, so the plaintiffs had not demonstrated injury.
Here, none of the benefits the government identifies is sufficiently connected to the costs to qualify as an offset. The only benefits that are conceivably relevant are the increase in vehicle registration and the decrease in uninsured motorists, but even those are based on the independent decisions of DAPA beneficiaries and are not a direct result of the issuance of licenses. Analogously, the Third Circuit held that sports leagues had standing to challenge New Jerseyâs decision to license sports gambling, explaining that damage to the leaguesâ reputations was a cognizable, injury despite evidence that more people would have watched sports had betting been allowed. NCAA, 730 F.3d at 222-24. The diminished public perception of the leagues and the greater interest in sports were attributable to the licensing plan but did not arise out of the same transaction and so could not be compared.
In the instant case, the states have alleged an injury, and the government predicts that the later decisions of DAPA beneficiaries would produce offsetting benefits. Weighing those costs and benefits is precisely the type of âaccounting exercise,â id. at 223, in which we cannot engage. Texas has shown injury.
C.
Texas has satisfied the second standing requirement by establishing that its injury is âfairly traceableâ to DAPA. It is undisputed that DAPA would enable beneficiaries to apply for driverâs licenses, and there is little doubt that many would do so because driving is a practical necessity in most of the state.
The United States urges that Texasâs injury is not cognizable, because the state could avoid injury by not issuing licenses to illegal aliens or by not subsidizing its licenses., Although Texas could avoid financial loss by requiring applicants to pay the full costs of licenses, it could not avoid injury altogether. â[S]tates have a sovereign interest in âthe power to create and enforce a legal code,â â
Indeed, treating the availability of changing state law as a bar to standing would deprive states of judicial recourse for many bona fide harms. For instance, under that theory, federal preemption of state law could never be an injury, because a state could always change its law to avoid preemption. But courts have often held that states have standing based on preemption.
Relying primarily on Pennsylvania v. New Jersey, 426 U.S. 660, 96 S.Ct. 2333, 49 L.Ed.2d 124 (1976) (per curiam), the United States maintains that Texasâs injury is self-inflicted because the state voluntarily chose to base its driverâs license policies on federal immigration law. In Pennsylvania v. New Jersey, id. at 664, 666, 96 S.Ct. 2333 the Court held that several states lacked standing to contest other statesâ laws taxing a portion of nonresidentsâ incomes. The plaintiff states alleged that the defendant statesâ taxes injured them because the plaintiffs gave their residents credits for taxes paid to other states, so the defendantsâ taxes increased the amount of those credits, causing the plaintiffs to lose revenue. Id. at 663, 96 S.Ct. 2333. The Court flatly rejected that theory of standing:
In neither of the suits at bar has the defendant State inflicted any injury upon the plaintiff States through the imposition of the [challenged taxes]. The injuries to the plaintiffsâ fiscs were self-inflicted, resulting from decisions by their respective state legislatures. Nothing required Maine, Massachusetts, and Vermont to extend a tax credit to their residents for income taxes paid to New Hampshire, and nothing prevents Pennsylvania from withdrawing that credit for taxes paid to New Jersey. No State can be heard to complain about damage inflicted by its own hand.
The more recent decision in Wyoming v. Oklahoma, 502 U.S. 437, 112 S.Ct. 789, 117 L.Ed.2d 1 (1992), also informs our analysis. There, the Court held that Wyoming had standing to challenge an Oklahoma law requiring some Oklahoma power plants to burn at least 10% Oklahoma-mined coal. Id. at 447, 112 S.Ct. 789. The Court explained that Wyoming taxed the extraction of coal in the state and that Oklahomaâs law reduced demand for that coal and Wyomingâs -corresponding revenue. Id. The Court emphasized that the case involved an âundisputedâ âdirect injury in the form of a loss of specific tax revenues.â Id. at 448, 112 S.Ct. 789. It rejected Oklahomaâs contention âthat Wyoming is not itself engaged in the commerce affected, is not affected as a consumer, and thus has not suffered the type of direct injury cognizable in a Commerce Clause action,â id.,
Both the Pennsylvania v. New Jersey plaintiffs and Wyoming structured then-laws in ways that meant their finances would have been affected'by changes in other statesâ laws. Because the tax credits in Pennsylvania v. New Jersey were based on taxes paid to other states, any tax increases in other states would have decreased the plaintiffsâ revenues, and any tax cuts would have had the opposite effect. Analogously, Wyomingâs tax was based on the amount of coal extracted there, so any policies in other states that decreased demand for that coal would- have diminished Wyomingâs revenues, and any policies that bolstered demand would have had the opposite effect.
In other words, the schemes in both cases made the plaintiff statesâ finances dependent on those of third parties â either resident taxpayers or coal companies â which in turn were affected by other statesâ laws. The issues in Pennsylvania v. New Jersey and Wyoming v. Oklahoma were thus similar to the question here, but the Court announced different results. The two cases are readily distinguishable, however, and, based on two considerations, Wyoming v. Oklahoma directs our decision.
First, Texas and Wyoming sued in response to major changes in the defendant statesâ policies. Texas sued after the United States had announced DAPA, which could make at least 500,000 illegal aliens eligible for driverâs licenses and cause millions of dollars of losses; Wyoming sued after Oklahoma had enacted a law that cost Wyoming over $1 million in tax revenues. See id. at 445-46 & n. 6, 112 S.Ct. 789. Conversely, the Pennsylvania v. New Jersey plaintiffs sued not because of a change in the defendant statesâ laws but because they believed that Austin v. New Hampshire, 420 U.S. 656, 95 S.Ct. 1191, 48 L.Ed.2d 530 (1975), had rendered the defendantsâ laws unconstitutional. See Pennsylvania v. New Jersey, 426 U.S. at 661â 63, 96 S.Ct. 2333. The fact that Texas sued in response to a significant change-in the defendantsâ policies shows that its injury is not self-inflicted.
Second, the plaintiffsâ options for accomplishing their policy goals were more limited in this case and in Wyoming v. Oklahoma than in Pennsylvania v. New Jersey. Texas seeks to issue licenses only to those lawfully present in the United States, and the state is required to use federal immigration classifications to do so. See Villas at Parkside Partners, 726 F.3d at 536. Likewise, Wyoming sought to tax the extraction of coal and had no way to avoid being affected by other statesâ laws that reduced demand for that coal.
The decision in Amnesty International supports this conclusion: The Court held that the plaintiffs lacked standing to challenge a provision of the Foreign Intelligence Surveillance Act authorizing the interception of certain electronic communications. Amnesty Intâl, 133 S.Ct. at 1155. The plaintiffs alleged that they had been forced to take costly steps to avoid surveillance, such as traveling to meet in person and not discussing certain topics by email or phone. Id. at 1150-51. The Court held that any such injuries were self-inflicted, id. at 1152-53, reasoning that plaintiffs âcannot manufacture standing merely by inflicting harm on themselves based on their fears of hypothetical future harm that is not certainly impending.â Id. at 1151 (citing Pennsylvania v. New Jersey, 426 U.S. at 664, 96 S.Ct. 2333). âIf the law were otherwise, an enterprising plaintiff would be able to secure a lower standard for Article III standing simply by making an expenditure based on a nonparanoid fear.â Id.
By way of contrast, there is no allegation that Texas passed its driverâs license law to manufacture standing. The legislature enacted the law one year before DACA and three years before DAPA was announced,
In addition to its notion that Texas could avoid injury, the government theorizes that Texasâs injury is not fairly traceable to DAPA because it is merely an incidental and attenuated consequence of the program. But Massachusetts v. EPA establishes that the causal connection is adequate. Texas is entitled to the same âspecial solicitudeâ as was Massachusetts, and the causal link is even' closer here.
For Texas to incur injury, DAPA beneficiaries would have to apply for driverâs licenses as a consequence of DHSâs action, and it is apparent that many would do so. For Massachusettsâs injury to have occurred, individuals would have had to drive Additional Information