United States v. Vaello Madero

2022-04-28
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Headline: Ruling lets Congress exclude Puerto Rico residents from Supplemental Security Income, reversing lower courts and leaving Congress—not the Constitution—to decide whether to extend federal benefits to the Territory.

Holding: The Constitution does not require Congress to extend Supplemental Security Income benefits to residents of Puerto Rico, so Congress may lawfully exclude them and need not provide SSI to the Territory.

Real World Impact:
  • Allows the federal government to exclude Puerto Rico residents from SSI under current law.
  • Leaves decisions about extending SSI to Congress rather than the courts.
  • Permits recovery of overpaid SSI funds sent to Puerto Rico residents
Topics: Puerto Rico, Supplemental Security Income, territorial benefits, equal protection, federal tax policy

Summary

Background

A U.S. citizen, Jose Luis Vaello Madero, received Supplemental Security Income (SSI) while living in New York and then moved to Puerto Rico. SSI by statute applies only to the 50 States and the District of Columbia; residents of Puerto Rico are excluded and instead receive a different, partly local program. After the government unknowingly continued paying Vaello Madero in Puerto Rico, it sued to recover more than $28,000 in overpayments, and Vaello Madero argued that excluding Puerto Rico residents from SSI violated the Fifth Amendment’s equal-protection guarantee.

Reasoning

The core question was whether the Constitution requires Congress to give SSI to Puerto Rico residents the same way it does for State residents. The Court applied a deferential rational-basis standard and relied on prior rulings saying Congress may treat Territories differently when it has a rational reason. The majority emphasized Puerto Rico’s different tax and fiscal relationship with the federal government as a rational basis for Congress to distinguish between Territory and State residents. The Court therefore held the Constitution does not compel Congress to extend SSI to Puerto Rico and reversed the First Circuit.

Real world impact

As a result, the decision allows the federal government to exclude Puerto Rico residents from SSI under current law and to seek recovery of overpayments like those to Vaello Madero. It leaves policymakers, not the courts, to decide whether to change the rule; the Solicitor General said Congress could choose to extend SSI but is not constitutionally required to do so. The Court also cautioned this ruling does not address excluding residents of any State.

Dissents or concurrances

Justice Sotomayor dissented, arguing the exclusion is irrational because SSI targets very low-income citizens and many Puerto Rico residents contribute to federal revenues; Justices Thomas and Gorsuch wrote separate opinions raising originalist concerns and criticizing the Insular Cases.

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