OPINION OF THE COURT
GARTH, Circuit Judge.
This appeal involves the Department of Education's authority to enforce Title IX of the Education Amendments of 1972,
Title IX proscribes gender discrimination in education programs and activities receiving federal financial assistance. Title IX "contains two core provisions." North Haven Bd. of Educ. v. Bell, ___ U.S. ___, 102 S.Ct. 1912, 72 L.Ed.2d 299 (1982). Section 901(a) of the 1972 Act contains a program-specific ban of sex discrimination:
20 U.S.C. § 1681 (emphasis added).
Under section 902, each agency awarding federal financial assistance "other than a contract of insurance or guaranty" to any education program or activity is authorized to promulgate regulations to insure compliance with section 901(a). If compliance cannot be secured by voluntary means, section 902 authorizes the termination of federal funds to the program in which noncompliance is found. 20 U.S.C. § 1682.
In addition, recipients provided basic information about their programs, including a "self-evaluation" under Title IX (A. 18).
Grove City College (Grove) is a private co-educational institution of higher education affiliated with the United Presbyterian Church and located in Grove City, Pennsylvania. Approximately 2,200 students attend Grove (A. 33). One hundred forty of Grove's students are eligible to receive Basic Educational Opportunity Grants (BEOGs) appropriated by Congress and allocated by the Department pursuant to 20 U.S.C. § 1070a. Three hundred forty-two of Grove's current students have obtained Guaranteed Student Loans (GSLs).
BEOGs are paid by the Department directly to the eligible students attending Grove. Grove, however, executes the institutional section to the students' BEOG applications and certifies data involving the student applicants' costs and enrollment status so that the students might receive federal financial assistance.
In July, 1976 the Department began efforts to secure an Assurance of Compliance from Grove based upon the receipt of BEOGs and GSLs by Grove students. Grove refused to execute the Assurance, asserting that it received no federal financial assistance. The Department then initiated administrative proceedings to terminate grants and loans to students attending Grove.
After an administrative hearing, an Administrative Law Judge (ALJ) concluded that Grove was a recipient of federal financial assistance within the meaning of Title IX and that the allocation of BEOG's and GSL's could be terminated for Grove's refusal to execute an Assurance of Compliance. Since Grove conceded that it did not file an Assurance of Compliance, the ALJ entered an order prohibiting the payment of BEOG's or GSL's to students attending Grove.
On November 29, 1978, Grove, joined by four student BEOG and GSL recipients,
In an amended opinion on June 26, 1980 the district court granted Grove's motion for summary judgment and denied the cross-motion of the Department. Although the Court agreed with the Department that BEOGs and GSLs constituted "federal financial assistance" to Grove within the meaning of Title IX, it concluded that the Department could not terminate federal assistance to Grove City students because of Grove's refusal to sign an Assurance of Compliance.
The district court set forth several alternative rationales for its conclusions. First, the court held that 20 U.S.C. § 1682, which denies Title IX enforcement authority with
The court's final amended order (1) declared that the Assurance of Compliance form (HEW Form 639A) was invalid; (2) enjoined the Department from using the Assurance of Compliance form; (3) enjoined the termination of financial assistance to the plaintiffs unless actual sex discrimination was proved at an administrative hearing with notice to all those affected by the proceeding; and (4) enjoined the termination of GSL's to students.
The Department's appeal, No. 80-2384, and Grove's cross-appeal, No. 80-2383 followed.
At the outset, we consider Grove's cross-appeal because a threshold question on this appeal is whether Grove, which has refused all federal financial assistance, nevertheless is to be considered a recipient of such assistance within the meaning of section 901(a) because its students receive federal grants.
The Department has construed the phrase "federal financial assistance" to include educational grants paid to students, and, thus, received indirectly by the schools which they attend. The regulation defines federal financial assistance in relevant part as
34 C.F.R. § 106.2(g)(1)(ii).
The Department's regulations further define a "recipient" of federal financial assistance:
30 C.F.R. § 106.2(h).
Thus, the Department maintains that Grove is a "recipient" because students attending Grove receive federal monies in the form of BEOGs which monies are used to pay their educational expenses at Grove.
Grove challenges the Department's inclusion of BEOGs within the scope of "federal financial assistance" under section 901(a). According to Grove, the phrase "federal financial assistance" refers only to direct payments to institutions or educational programs,
In determining the scope of Title IX, we begin with the statutory language itself. North Haven Board of Education v. Bell, ___ U.S. ___, 102 S.Ct. 1912, 72 L.Ed.2d 299 (1982). The language of section 901(a) extends Title IX's coverage to "any education program or activity receiving Federal financial assistance...." Hence, by its all inclusive terminology the statute appears to encompass all forms of federal aid to education, direct or indirect.
Grove, however, argues that the statute has no application to it. Section 901, argues Grove, applies to "any ... program or activity receiving federal financial assistance," and it must be conceded, contends Grove, that it "receives" no such assistance. Although Grove acknowledges that it benefits from federal aid which its students receive, Grove claims that this is insufficient to bring Grove's activities within the ambit of Title IX. In effect, Grove reads the statute as pertaining only to direct aid and not to indirect assistance.
Giving Title IX the broad reading that its remedial purpose dictates, see North Haven, ___ U.S. at ___, 102 S.Ct. at 1917, we cannot agree with the manner in which Grove interprets § 901(a) or with its conclusion that § 901(a) is limited solely to direct assistance.
The enactment of Title IX in 1972 was the culmination of efforts over several years to ban gender discrimination in the field of education. Patterned after Title VI of the Civil Rights Act of 1964, which proscribes discrimination by reason of race, color, religion, or national origin, "[t]he drafters of Title IX explicitly assumed that it would be interpreted and applied as Title VI had been during the preceding eight years." Cannon v. University of Chicago, 441 U.S. 677, 696, 99 S.Ct. 1946, 1957, 60 L.Ed.2d 560 (1979).
Just as Title VI was structured so that federal monies would not be expended in any fashion
Indeed, in Cannon v. University of Chicago, 441 U.S. 677, 704, 99 S.Ct. 1946, 1961, 60 L.Ed.2d 560 (1978), the Supreme Court recognized that Title IX, like Title VI, was designed "to avoid the use of federal resources to support discriminatory practices. ..." The legislative history of Title IX amply supports this conclusion.
In 1971, the provisions embodying Title IX were first introduced by Senator Bayh as an amendment to S. 659, 92d Cong., 1st Sess. (1971), the Education Amendments of 1971. A major feature of S. 659 was the establishment of the Basic Educational Opportunity Grant program. Speaking in support of the amendment, Senator Bayh stated:
117 Cong.Rec. 30412 (1971). The same sentiments were expressed in the House. 117 Cong.Rec. 39252 (1971).
Statements made during the 1971 debates on Senator Bayh's proposal demonstrate that the funds subject to Title IX encompassed virtually all federal assistance to education, including BEOG grants to students. Supporting Senator Bayh's amendment to the Bill which provided for the establishment of the BEOG program, S. 659, Senator McGovern stated:
117 Cong.Rec. 30,158-59 (1971) (emphasis added).
Similarly, when Senator Bayh was asked what type of aid might be subject to termination under Title IX, he responded, "We are cutting off all aid that comes through the Department of Health, Education and Welfare...." 117 Cong.Rec. 30408 (1971).
Although Senator Bayh's 1971 amendment was not adopted, he reintroduced his amendment to S.659 on February 28, 1972 and the amendment was adopted that day. See 118 Cong.Rec. 5815 (1972).
This being so, the Department was well within its authority when it defined "recipient" to include any institution which receives federal financial assistance "through another recipient." 34 C.F.R. § 106.2(h). Grove thus became a "recipient" within the regulations when it received federal monies that had been granted to its students for their use in educational pursuits.
In addition to contemporaneous legislative history, the post-enactment history of Title IX provides further evidence that BEOGs come within the scope of "federal financial assistance."
After the Department published its final Title IX regulations on June 4, 1975, (40 Fed.Reg. 24128) they were submitted to Congress for review pursuant to § 431(d)(1) of the General Education Provisions Act, Pub.L. 93-380, 88 Stat. 567, as amended, 20 U.S.C. § 1232(d)(1). This statutory provision affords Congress the opportunity to examine an agency regulation and, if it finds the regulation "inconsistent with the Act from which it derives its authority ...," Congress is enabled to disapprove the regulation by a concurrent resolution. If no such concurrent resolution is passed within 45 days of the submission of the regulation to Congress, the regulation becomes effective.
During the Congressional review of the Title IX regulations, the subject of indirect aid was specifically addressed. Legislators were explicitly informed by HEW Secretary Weinberger that the Department construed "federal financial assistance" to include indirect student assistance programs:
Sex Discrimination Regulations: Hearings Before the Subcomm. on Postsecondary Education of the House Comm. on Education and Labor, 94th Cong., 1st Sess. 481-484 (1975) ("Postsecondary hearings").
In response to this Departmental interpretation, Senator Helms introduced a proposed concurrent resolution that would have disapproved the regulation because it did not limit the application of Title IX to programs and activities directly receiving "federal financial assistance." See S.Con.R. 46, 121 Cong.Rec. 13300 (1975). In addition, several other proposed concurrent resolutions were introduced that would have disapproved the regulation in its entirety. See H.R.Con.Res. 310 (Rep. Martin) 121 Cong.Rec. 19209 (1975); H.Con.Res. 329 (Rep. O'Hara), 121 Cong.Rec. 21687 (1975); H.R.Con.Res. 330 (Rep. O'Hara), 121 Cong.Rec. 21687 (1975). No "disapproval" resolution was passed by either House.
Subsequently, in 1976 Senator McClure proposed a similar amendment to Title IX that provided: "For purposes of this chapter, federal financial assistance received, means assistance received by the institution directly from the federal government." 122 Cong.Rec. 28144 (1976). In his statement in support of this proposal, Senator McClure made it apparent that had his amendment passed, Grove's interpretation of Title IX would undoubtedly be correct. Senator McClure stated:
122 Cong.Rec. 28145 (1976).
These remarks brought forth an immediate and vigorous response from Senator Pell, the prime Senate sponsor of the educational opportunity grant programs included in the Education Amendments of 1972. Senator Pell declared:
Similarly, Senator Bayh, the Senate sponsor of the language that was ultimately enacted as Title IX, vigorously announced his opposition to Senator McClure's amendment. The correct interpretation of Title IX, according to Senator Bayh, was the Department's construction that "federal financial assistance" included BEOGs, since student grants benefited the educational institution.
122 Cong.Rec. 28145-28146 (1976) (emphasis added).
On that same day, soon after the remarks by Senators Pell and Bayh, Senator McClure's proposed amendment to Title IX was defeated by a 50 to 30 vote.
Although postenactment history is not always accorded controlling weight, see Southeastern Community College v. Davis, 442 U.S. 397, 411 n.11, 99 S.Ct. 2361, 2370 n.11, 60 L.Ed.2d 980 (1979) (concluding that subsequent isolated statements by individual legislators or committee members "cannot substitute for a clear expression of legislative intent at the time of enactment"), here, where the Department's interpretation of "federal financial assistance" has been directly brought to Congress' attention, Congress' specific rejection of proposed legislation that would have overturned that interpretation provides a substantial indication that it was Congress' intent to include BEOG's within the coverage of section 901. Indeed, in North Haven Bd. of Educ., which upheld the Department's Title IX regulation governing employment discrimination, the Supreme Court relied, as we do here, on the post-enactment history of Title IX. In so doing, the Court stated:
___ U.S. at ___, 102 S.Ct. at 1925 (citations omitted). Accord, Cannon v. University of Chicago, 441 U.S. 677, 687 n.7, 99 S.Ct. 1946, 1952 n.7, 60 L.Ed.2d 560 (1979).
A case under Title VI which supports our conclusion that Grove is a recipient of federal aid within the meaning of Title IX, is Bob Jones University v. Johnson, 396 F.Supp. 597 (D.S.C.1974), aff'd mem., 529 F.2d 514 (4th Cir. 1975).
In Bob Jones, the Department had ordered that eligible veterans enrolled at Bob Jones University could not receive veterans' educational benefits because the University engaged in racially discriminatory practices. The University then sought injunctive relief from that order, arguing that, since the benefits were paid directly to veterans, it was not the University which received federal financial assistance, and, therefore, the University was not subject to Title VI. The district court rejected the University's argument and dismissed the injunction. It held that VA educational benefits, even though paid directly to students, constituted federal financial assistance to the University within the purview of Title VI.
Id. at 603-04. See also McGlotten v. Connally, 338 F.Supp. 448 (D.D.C.1972) (three-judge court) (disallowing tax deductions for contributions to racially segregated fraternal organizations as such deductions constitute federal financial assistance under Title VI.)
The decision in Bob Jones figured importantly in the postenactment history of Title IX. During the debates on the McClure amendment in 1976, see supra, which would have limited the coverage of Title IX solely to "direct" federal financial assistance, Senator Bayh specifically referred to the Bob Jones decision under Title VI.
122 Cong.Rec. 28145 (1976).
The district court here relied almost solely on the Bob Jones analysis when it concluded that indirect federal financial assistance, i.e. BEOGs, brought Grove within the coverage of Title IX. Our discussion of the statute, its legislative history, post-enactment events, and the Bob Jones decision has led us to the same conclusion. Thus, we are satisfied that the district court did not err in this ruling.
Section 901 of Title IX also provides that the ban against sex discrimination is restricted to an "education program or activity receiving Federal financial assistance." 20 U.S.C. § 1681. In addition, § 902 limits the Department's authority to terminate federal funding to "the particular program, or part thereof" which does not comply with the regulatory requirements. 20 U.S.C. § 1682.
Grove argues that construing "federal financial assistance" as including BEOGs is necessarily incompatible with, and mutually exclusive of the statutory requirement that enforcement of Title IX be "program specific." According to Grove, Title IX's reference to "program" or "activity" clearly indicates that the Act's prohibition of sex discrimination cannot apply on a generalized, nonprogrammatic, or institutional basis. Instead, Grove claims that only those programs or activities for which Federal funds are specifically earmarked, are made subject to the Act, and it is only those particular programs or activities from which federal assistance can be withheld in the event violations are found within the particular identified program. From that conclusion, Grove reasons further that because indirect student assistance, such as BEOG grants, cannot be tied to any specific program or activity at an educational institution,
We concede, as we must, that Title IX's provisions, on their face, are program-specific. See North Haven, ___ U.S. at ___, 102 S.Ct. at 1925.
We have previously noted that Title IX is a counterpart of Title VI and is to be similarly interpreted. Like its Title VI counterpart, Title IX also requires that any withdrawal of federal funding must be restricted to the particular activity or program in which discrimination is found. It is apparent from the legislative debates that the legislators were profoundly concerned with the possibility of arbitrary and overbroad funding terminations. Fears were expressed during the Title VI debates that an unlimited termination sanction invoked by reason of an isolated violation might result in wholesale cut-off of federal assistance to an entire state thereby affecting state programs unrelated to, and not identified with, the discriminatory practices.
As we understand these legislative concerns, the legislators did not contemplate that separate, discrete, and distinct components or functions of an integrated educational institution would be regarded as the individual programs, to which sections 901 and 902 refer. Whatever the legislators did contemplate by their use of the term "program or activity" we can be certain of only two things: (1) "program or activity" was never intended to be defined in the narrow and restrictive manner urged by Grove; and (2) the precise meaning, content, and parameters of "program" as it applies to the issue presented here have never been established.
Substantiating our view that to date little definitional content has been given to the term program, is the Supreme Court's recent Title IX decision in North Haven. In that case, although implicitly adopting an institutional approach to the concept of program,
Indeed, legal commentators and the few courts confronted with the need to define "program" have recognized that neither the statutes, by their terms, nor the legislative history resolve the question of what constitutes the "program or activity." See, e.g., Finch Comment, 118 U.Pa.L.Rev. at 1116-24; Todd, Title IX of the 1972 Education Amendments: Preventing Sex Discrimination in Public Schools, 53 Texas L.Rev. 103, 107-13 (1974); Note, School Desegregation and the Office of Education Guidelines, 55 Geo.L.J. 325, 344-45 (1966); Haffer v. Temple University, 524 F.Supp. 531 (E.D.Pa. 1981), appeal pending, No. 82-1049 (3d Cir.).
However "program" may be defined when a direct federal grant is involved (an issue not presented here), we are not persuaded that where non-earmarked or indirect funding is involved, those statutes proscribing discrimination should be rendered ineffective and without force. As was argued by amicus American Association of University Women, in its supplemental letter memorandum:
American Association of University Women Memorandum, at p. 5-6.
The same principle is implicit in the formula of one legal commentator who defined "program" along these lines:
Todd, supra, 55 Texas L.Rev. at 112.
The view that non-earmarked or indirect federal funding brings within the definition of "program" an entire integrated institution is supported by the decision in Haffer v. Temple University, 524 F.Supp. 531 (E.D.Pa.1981), appeal pending, No. 82-1049 (3d Cir.). That case involved the question of whether Temple University's intercollegiate athletic program was subject to Title IX even though no federal funds had been earmarked for athletics. Temple conceded that it received substantial federal financial assistance for other educational purposes. Nevertheless, Temple argued that "its intercollegiate athletic program is exempt from the requirements of Title IX because it receives no federal funds earmarked for the use of that program", and that "the implementing regulations are invalid insofar as they cover programs or activities that `benefit from' federal financial assistance but do not receive earmarked funding." 524 F.Supp. at 532.
In the Haffer opinion, then Chief Judge Lord analyzed the pertinent legislative history and concluded that, during the statutorily mandated Congressional review of the Department's regulations, the major focus of controversy centered on whether inter-collegiate athletics were covered by Title IX. See Hearings on Title IX Before the Subcommittee on Postsecondary Education of the House Committee on Education and Labor, 94th Cong., 1st Sess. 46, 66, 98, 304 (1975) [hereinafter Postsecondary Hearings]; Haffer at 536. However, despite the vigorous debate over whether the regulations included athletics, Congress passed no disapproving resolution.
Additionally, the court emphasized that after enactment of Title IX, numerous attempts were made to amend it so as to exclude from the Act's coverage, in whole or in part, intercollegiate athletics.
Judge Lord thereupon denied Temple's motion for summary judgment. In denying that motion, he reasoned:
Id. at 541. See also Poole v. South Plainfield Bd. of Educ., 490 F.Supp. 948 (D.N.J. 1980) (holding that section 504 of the Rehabilitation Act of 1973, which contains the same program-specific provisions as Title IX, applies to all activities of a public school system receiving federal funds); Wright v. Columbia University, 520 F.Supp. 789 (E.D.Pa.1981) (same holding with respect to activities of a University).
Where the federal government furnishes indirect or non-earmarked aid to an institution, it is apparent to us that the institution itself must be the "program." Were it otherwise, and if it had to be demonstrated that each individual component of an integrated educational institution had in fact received the particular monies for a particular purpose, no termination sanction could ever effectively be imposed.
We conclude that the remedy to be ordered for failure to comply with Title IX is as extensive as the program benefited by the federal funds involved. Because the federal grants made to Grove's students necessarily inure to the benefit of the entire College, the "program" here must be defined as the entire institution of Grove City College.
The last issue raised by Grove in its appeal is that the Department cannot require it to comply with Title IX because enforcement of the regulations would unreasonably curtail the College's freedom of association and that of the students. Grove asserts that both it, and its students, have a protected right to associate in an academic community free from unreasonable governmental intrusion. According to Grove, the Department's enforcement of Title IX would impermissibly interfere with the College's autonomy and the values which it seeks to promote among its students.
451 U.S. at 17, 101 S.Ct. at 1539 (citations omitted).
Congress has the same power to impose conditions on the use of funds granted to private educational institutions as it has when federal funds are granted to states. Bob Jones University v. Johnson, 396 F.Supp. 597, 606 (D.S.C.1974), aff'd mem., 529 F.2d 514 (4th Cir. 1975). In any event, we find it difficult to understand how the
Moreover, the first amendment does not provide private individuals or institutions the right to engage in discrimination. Thus, neither Grove nor its students can assert an alleged first amendment right to be free of the strictures of Title IX's prohibitions of gender discrimination and also claim the right to continued federal funding. Cf. Bob Jones, 396 F.Supp. at 607 (Free exercise clause and freedom of association provide no right against termination of federal funding based on Bob Jones' racially discriminatory practices).
After concluding that Grove was subject to Title IX, the district court ruled that Grove's refusal to execute an Assurance of Compliance did not justify the Department's action in terminating funds paid to Grove's students under the BEOG program. The Department appealed this ruling.
First, the district court held that Grove could not be required to sign an Assurance of Compliance, because subpart E of the regulation, which prohibits discrimination in employment
Since the district court's decision, the Supreme Court has resolved this issue by affirming the Second Circuit's decision. See North Haven Bd. of Educ. v. Bell, 456 U.S. 512, 102 S.Ct. 1912, 72 L.Ed.2d 299 (1982). As a consequence, there is no need for us to make an independent examination of the cases and legislative history for it has now been definitively determined that Title IX does reach discrimination in educational employment.
Since the district court incorrectly concluded that the employment discrimination regulations (subpart E) were void, so much of the district court's order which declared the Assurance of Compliance form invalid and which enjoined the Department from requiring Grove to sign the Assurance of Compliance is in error, and must be reversed.
In addition to declaring the Assurance of Compliance form invalid, the district court's order also enjoined the Department from terminating the payment of monies under the BEOG program until the
Section 902 of the Act provides the Department with the authority to enforce Title IX's ban against gender discrimination. By its very terms, section 902
The form prescribed did little more than identify the type of institution applying for federal funds. (A. 18). It required minimal information respecting grievance procedures in the event of complaints, and a statement of self-evaluation concerning the practices of the institution. Primarily it committed the recipient of funds to comply with Title IX and its regulations. As such it constituted a threshold device facilitating the enforcement of Title IX's objectives.
Thus, the assurance regulations, when read in conjunction with section 902, authorize the Department to terminate federal financial assistance upon a recipient's failure to execute an Assurance. We are satisfied that Title IX authorizes the promulgation of the assurance regulation and that the Department can therefore properly condition its grant or denial of funds upon adequate representations that the recipient will not discriminate.
Case law upholding parallel regulations and enforcement measures under Title VI of the Civil Rights Act of 1964 bolsters our conclusion that section 902 gives the Department authority to terminate funding when a recipient fails to comply with the assurance requirement. Section 902 was patterned after section 602 of the 1964 Act and the wording of the two provisions is virtually identical.
In Gardner v. State of Alabama, 385 F.2d 804 (5th Cir. 1967), cert. denied, 389 U.S. 1046, 88 S.Ct. 773, 19 L.Ed.2d 839 (1968), HEW had terminated approximately $1,000,000 of funds under five separate federal assistance programs after the State of Alabama failed to execute an Assurance that it would undertake efforts to end racial discrimination in federally assisted programs. Alabama raised various objections to the assurance requirement all of which were rejected by the Court. The Court concluded that "the Secretary in issuing [the assurance] regulation was clearly acting within its [sic] rule making power conferred upon it [sic] by statute." 385 F.2d at 817 n.8. See also United States v. El Camino Community College Dist., 600 F.2d 1258, 1260 (9th Cir. 1979), cert. denied, 444 U.S. 1013, 100 S.Ct. 661, 62 L.Ed.2d 642 (1980) ("in exercising its investigatory powers ... HEW must have substantial latitude in scrutinizing policies and practices of the institution that may have a discriminatory impact on the intended beneficiaries of assistance").
As we read the district court's opinion in this case, it apparently believed that no authority existed for withholding financial assistance where the recipient refused to file an assurance as a matter of conscience and where no evidence of sex discrimination appeared in the record (A. 31). We conclude the district court erred in this respect.
Grove was given the choice of complying with the conditions of Title IX and the regulations promulgated thereunder or foregoing the benefits of federal funds. Grove chose not to comply, and the Department appropriately suspended the student
The district court also enjoined the Department from terminating funds under the BEOG program without affording students who would be adversely affected by such a termination notice and an opportunity to participate in a full administrative hearing. According to the district court, this requirement was mandated by the due process clause of the fifth amendment. We conclude the due process clause imposes no such requirement.
In O'Bannon v. Town Court Nursing Center, 447 U.S. 773, 100 S.Ct. 2467, 65 L.Ed.2d 506 (1980), HEW had decertified a nursing home and ordered the termination of all Medicare and Medicaid assistance for patients at that home. In a suit brought by the home and six patients who were Medicare and Medicaid beneficiaries, the Supreme Court held that HEW was not required to afford due process hearings to patients as a prerequisite to disqualifying the home. In so doing the Court stated:
447 U.S. at 785-86, 100 S.Ct. at 2475 (footnotes omitted).
O'Bannon is dispositive of the due process issue raised here. We perceive no difference between the impact on the students when the Department terminated Grove as an eligible education program and the impact on the patients when HEW decertified the nursing home in O'Bannon. If the O'Bannon patients had no enforceable expectation of continued benefits to pay for care at Town Court when that nursing home was decertified, neither would Grove's students have an enforceable expectation of receiving grants to attend Grove, after Grove's participation in the BEOG program was ended.
Each student receiving a BEOG has separately been found entitled to receive federal assistance on the basis of personal need and of his or her family's financial status. See 34 C.F.R. 690 Subparts C and D. Nothing in the Department's termination of Grove would detract from the individual eligibility of any student to receive a grant. But, as was true in O'Bannon, a student at Grove has no right to continued federal benefits to pay for his education at an institution that has not qualified by meeting the conditions for federal assistance. Thus, we reject the claim of the student-plaintiffs that a due process hearing was required.
We have concluded that Grove is a recipient of federal financial assistance within
Hence, so much of the district court's order, from which Grove appealed at No. 80-2383, and which held that Grove was a "recipient" within the meaning of Title IX, will be affirmed. So much of the district court's order, from which the Department appealed at No. 80-2384, and which invalidated the Assurance of Compliance form, and enjoined the Department from using that form and from terminating student BEOGs, will be reversed.
Accordingly, we will reverse so much of the district court's order of June 26, 1980, as is inconsistent with this opinion and with our holdings, and we will remand the case to the district court for the entry of an appropriate order consistent with this opinion.
BECKER, Circuit Judge, concurring in the judgment and in all but Part III of the opinion:
I agree with the result reached by the majority. I write separately because of the unnecessary breadth of the majority's opinion, which effectively decides cases not before this panel but which are or will someday be before this Court.
Part III of the majority opinion deals primarily with the question whether construing "federal financial assistance" to include BEOGs is necessarily incompatible with, and mutually exclusive of, the statutory requirement that enforcement of Title IX be "program specific." The majority answers this question by concluding that when the federal government furnishes indirect or non-earmarked aid to an institution, the institution itself must be the "program" for purposes of Title IX. (Majority op. at 699). That conclusion is unnecessary to the decision of this case. The controversy here does not implicate the application of Title IX to specific programs or activities within Grove's curriculum. Instead, the essential issue merely concerns Grove's refusal to execute the Assurance of Compliance. As a result, this case involves only a challenge to the facial validity of the Assurance of Compliance, and we need not pose the question raised by Haffer v. Temple University, 524 F.Supp. 531 (E.D.Pa.1981), appeal pending, No. 82-1049 (3d Cir.), whether a particular program within a university which has executed the Assurance of Compliance may be regulated under Title IX.
Pursuant to its regulations, 34 C.F.R. § 106.4(a), the Department requires each recipient of federal aid to file an Assurance of Compliance as a means of securing adherence to Title IX. Under the Assurance in use at the time this case was filed, the recipient agrees that it will
Our decision in this case must be guided by North Haven Bd. of Educ. v. Bell, 456 U.S. 512, 102 S.Ct. 1912, 72 L.Ed.2d 299 (1982), in which the Court examined the program-specificity of regulations governing employment discrimination in recipient schools. The critical paragraph of the Court's discussion of the program-specificity issue states:
___ U.S. at ___, 102 S.Ct. at 1926. The Court's discussion applies with equal force to this case. By its very terms, the Assurance of Compliance is program-specific, for it applies only to an "education program or activity for which the Applicant receives or benefits from Federal financial assistance...." (emphasis supplied). The termination of assistance to Grove is equally program-specific, for the Department took this action only in response to Grove's refusal to assure, by executing the Assurance of Compliance, that it would not discriminate on the basis of sex in any program or activity receiving federal financial assistance.
I agree that it is necessary for us to respond to Grove's contention that program-specificity cannot coexist with a construction of Title IX that subjects Grove to regulation because of its receipt of BEOG funds not earmarked for use in any specific program at the institution. In response to Grove's argument, I would endorse the passage from the amicus curiae brief of the American Association of University Women quoted in the majority's opinion (Majority op. at 698). The conclusion of that passage — that it is incorrect to contend that the more general the scope and purpose of the funding the more restrictive the coverage of this remedial civil rights statute — is an effective shield against the contention that non-specific and non-earmarked BEOGs are necessarily incompatible with Title IX's program-specificity. The majority, however, turns this shield into a sword and reaches the conclusion, certainly dispositive of this case but nonetheless unnecessary to its disposition, that receipt of non-earmarked federal assistance transforms the entire institution into a "program" for purposes of Title IX.
I am concerned that the majority's overbroad decision will foreclose inquiry responsive to specific facts in cases in which a college or university, for policy reasons independent of a concern about Title IX regulation, builds a financial "chinese wall" around a department or school so that a particular program or activity is not funded out of the same pool into which federal assistance has been poured. My judicial experience has taught me that one cannot prejudge the kind of record or arguments that will be developed in future cases. Whether or not it is a long step from my analysis to the conclusion reached in Part III-C by the majority, it is a significant step, and one that ought not to be taken except in the context of a record or relevant legal arguments requiring that a decision on the point be made.
Unless further specificity is demanded by the context, the defendants, including the Department of Health, Education and Welfare and any successor will be referred to as "the Department."
Brief for Appellants, No. 80-2383, at pp. 3-4.
42 U.S.C. § 2000d.
In addition, the provision authorizing administrative enforcement of Title IX through termination or refusal of federal aid is virtually identical to the administrative enforcement provisions found in Title VI. Compare 20 U.S.C. § 1682 (Title IX) with 42 U.S.C. § 2000d-1 (Title VI).
110 Cong.Rec. 6543 (Sen. Humphrey, quoting from President Kennedy's message to Congress, June 19, 1963) (emphasis added). See also 110 Cong.Rec. 7054-55 (1964) (remarks of Sen. Pastore).
Although there were some differences between Senator Bayh's 1971 proposal and his amendment that was actually adopted in 1972, these differences do not undermine our conclusion that the 1971 debates demonstrate that Title IX, as enacted, was intended to cover both direct and indirect financial aid.
However, that provision in 20 U.S.C. § 1232(d)(1) was enacted approximately four months after the Department's regulations went into effect. See Pub.L.No.94-142 § 7(a)(1) (enacted November 29, 1975). Moreover, in its decision upholding subpart E of the Department's regulations, the Supreme Court concluded that the failure of Congress to pass disapproving resolutions was a factor to consider in interpreting section 901 of Title IX. See North Haven, ___ U.S. at ___-___, 102 S.Ct. at 1925 (1982).
The Court, however, then held that the employment regulations promulgated under Title IX conformed to the program-specific requirement. It is significant, however, that the court did not attempt to define the contours of "program" in its opinion. Thus, to this extent, North Haven does not control our decision.
110 Cong.Rec. 7067 (1969). Accord, 110 Cong.Rec. 11942 (1964) (remarks of Attorney General Kennedy); 110 Cong.Rec. 2059, (1964) (remarks of Sen. Pastore); Comment, Board of Public Instruction v. Finch: Unwarranted Compromise of Title VI's Termination Sanction, 118 U.Pa.L.Rev. 1113, 1116-24 (1970) [hereinafter cited as Finch Comment].
We do not find the decision in Finch to be helpful or dispositive of the issues presented by this appeal. Finch involved neither across-the-board assistance for general educational purposes nor indirect federal financial assistance. Nor was the Finch court required to go beyond the particular grants in aid there at issue, in determining the contours of the program affected.
We note that Senator Bayh, in his testimony before the House Committee reviewing the regulations, stated:
Postsecondary Hearings at 171.
Most of these decisions, however, were reached in the context of deciding whether Title IX's employment regulations were invalid. See, e.g., Seattle University v. HEW, 16 F.E.P. 719 aff'd 621 F.2d 992 (9th Cir. 1980); Islesboro School Committee v. Califano, 593 F.2d 424 (1st Cir.), cert. denied, 444 U.S. 972, 100 S.Ct. 467, 62 L.Ed.2d 387 (1979); Junior College District of St. Louis v. Califano, 597 F.2d 119 (8th Cir.), cert. denied, 444 U.S. 972, 100 S.Ct. 467, 62 L.Ed.2d 388 (1979); Dougherty County School System v. Harris, 622 F.2d 735 (5th Cir. 1980). (See also text, infra, at 701 & n.29.)
The Supreme Court has subsequently vacated the decisions in Seattle University and Dougherty for further consideration in light of North Haven Bd. of Educ. v. Bell, see United States Department of Education v. Seattle University, ___ U.S. ___, 102 S.Ct. 2264, 73 L.Ed.2d 1280 (1982); Bell v. Dougherty County School System, ___ U.S. ___, 102 S.Ct. 2264, 73 L.Ed.2d 1280 (1982).
In light of the Supreme Court's decision in North Haven and its further action in Seattle University and Dougherty, we conclude that the analysis of the program-specific requirement found in these cases on which Grove relies is questionable and we decline to follow it.
Similarly, we decline to follow Othen v. Ann Arbor School Bd., 507 F.Supp. 1376 (E.D.Mich. 1981), Bennett v. West Texas State University, 525 F.Supp. 77 (N.D.Texas 1981), and Rice v. President and Fellows of Harvard College, 663 F.2d 336 (1st Cir. 1981). Othen and Bennett involved decisions, contrary to Haffer, that Title IX does not cover intercollegiate athletics. Both decisions relied heavily on the pre-North Haven employment regulation cases, as did Rice.
We also reject the reasoning and holding of University of Richmond v. Bell, 543 F.Supp. 321 (E.D.Va.1982), which enjoined the Department from investigating the University's athletic department or any educational program or activity not the recipient of direct federal financial assistance, even though the financial assistance which the University received included National Direct Student Loans, BEOGs, Supplemental Educational Opportunity Grants, and a Library Resource Grant.
Despite Judge Becker's claims that we ought not to address anything other than Grove's refusal to execute the Assurance of Compliance, he too agrees that we must respond to Grove's primary argument that "program-specificity cannot co-exist with a construction of Title IX that subjects Grove to regulation because of its receipt of [non-earmarked] BEOG funds." Concurring op. at 706. He would answer that argument precisely as did the amicus in its brief which we have quoted, see 698, supra. The answer thus given in the concurring opinion is no different than the answer we have been obliged to provide, and which appears in text above. Our answer, which also subscribed to the amicus' argument, and Judge Becker's endorsement of that argument, reveal no difference in the conclusions reached: namely, that where indirect, non-earmarked funding is involved, the "program" necessarily must embrace the entire college. Moreover, just as we have concluded that we are obliged to answer Grove's argument, Judge Becker also recognizes that this argument made by Grove must be answered.
Contrary to Judge Becker's fears, nothing that we have said in this opinion would foreclose further inquiry in a situation in which "for policy reasons [a college] builds a financial `[C]hinese wall' around a [particular] department or school." Concurring op. at 706. Significantly, this case, does not present a factual configuration which would support theories involving such a "financial Chinese wall" or its corollary, direct financial aid to a particular program. As a consequence, no such argument was ever advanced by Grove, nor could it have been.
Brief for Grove City College, No. 80-2384, at 35.
In Dougherty County School System v. Harris, 622 F.2d 735 (5th Cir. 1980), vacated and remanded for further consideration in light of North Haven sub nom. Bell v. Dougherty Cty School System, 456 U.S. 986, 102 S.Ct. 2264, 73 L.Ed.2d 1280 (1982), the Fifth Circuit Court declined to rule that Title IX did not reach employment discrimination in educational institutions, but held that the subpart E regulation was facially invalid on the grounds that its coverage was not program specific — i.e., that the regulation reached employment practices in programs or activities not receiving "federal financial assistance."