Hazard v. Shalala

SUHRHEINRICH, Circuit Judge.

I. Introduction

This appeal involves a challenge to the $1500 “automobile resource exemption” set by the Secretary of Health and Human Services (“Secretary”), for recipients of Aid to Families with Dependent Children (“AFDC”). See 45 C.F.R. § 233.20(a)(3)(i)(B)(2) (1993).1 Plaintiffs in this case were all denied AFDC and/or Medicaid benefits solely because they each own a vehicle worth more than $1500. Plaintiffs challenged both the Secretary’s initial decision to set the automobile resource exemption at $1500 as well as her subsequent failure to adjust that figure…