Case #412.0

Title IV-A Social Services Claims Resolution

Publication Date: January 01, 1981
Current Stock:

Educator Access

A review copy of this case is available free of charge to educators and trainers. Please create an account or sign in to gain access to this material.

Permission to Reprint

Each purchase of this product entitles the buyer to one digital file and use. If you intend to distribute, teach, or share this item, you must purchase permission for each individual who will be given access. Learn more about purchasing permission to reprint.

The 1962 Public Welfare Amendments Act authorized HEW to grant funds to states for social services delivered to both actual and potential welfare recipients. The ambiguity of the law and the Great Society zeal of several bureaucrats who recognized its possibilities resulted in massive state claims on federal monies. This case chronicles HEW attempts through the Nixon and Ford administrations to cap these expenditures. These efforts met with resistance both in Congress and from states, which brought suit against HEW. Finally, Hale Champion, HEW undersecretary in the newly installed Carter administration, opted to seek an out-of-court settlement of the suit.

Learning Objective:
The case details the ensuing negotiations and final settlement of the suit, which involved reaching agreement on a total dollar figure for claims and on a formula for distributing the money among the 28 participating states. The case illustrates the intricacies of intergovernmental negotiations, and suggests a viable strategy for such dealings. It underscores the importance of considering, in sequence, the parties, the issues, the alternatives to agreement for each side, and the special role of time.

Other Details

Case Author:
David Jernigan
Faculty Lead:
James Sebenius
Pages (incl. exhibits):
United States