State of California v. John R. Block, Secretary of the United States Department of Agriculture

This case involves an attempt by the Secretary of Agriculture to collect money from the State of California for alleged misadministration of the food stamps program. Section 10(g) of the Food Stamp Act of 1964 provided that if a state had been guilty of gross negligence or fraud in the administration of the program, the Secretary could demand return of monies to the federal government. The major issue for our consideration is whether a regulation, 39 Fed.Reg. 26,005 (1974), codified at 7 C.F.R. § 271.7 (a) (Appendix to 7 C.F.R. § 276 (1980)), was within the Secretary’s statutory authority under section 10(g) of the Food Stamp Act. Invoking the challenged regulation, the Secretary made a determination that Los Angeles and Santa Clara counties had run the federal program in violation of its regulation, and the Secretary demanded repayment of significant sums of money by California to the federal government.

California filed this action in district court seeking injunctive and declaratory relief. It moved for summary judgment, contending the regulation justifying the action was issued in excess of statutory authority. The Secretary filed a cross-motion for summary judgment,…