Nos. 87-3468, 87-3479.

877 F.2d 472 (1989)

Larry GARRETT; Diane Garrett, Plaintiffs-Appellees, v. Richard LYNG, Secretary of Agriculture, Defendant-Appellant, Defendant-Appellee, Patricia Barry, Director, Ohio Department of Human Services, Defendant-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided June 12, 1989.

Attorney(s) appearing for the Case

Robert K. Rasmussen (argued), Civil Appellate Staff, U.S. Dept. of Justice, Washington, D.C. and Alan P. Schwepe (argued), Asst. Atty. Gen., Health, Educ., and Human Services, Columbus, Ohio, for appellants.

Barbara J. Cook (argued), Legal Aid Soc., Cincinnati, Ohio, John Woliver, Batavia, Ohio, for appellees.

Before ENGEL, Chief Judge, and NELSON and RYAN, Circuit Judges.

DAVID A. NELSON, Circuit Judge.

This is an appeal by the Secretary of Agriculture from a district court decision holding that the Secretary acted improperly when he amended his regulations in 1986 to categorize "workfare" benefits as unearned income for purposes of determining eligibility for food stamps under 7 U.S.C. § 2014(e). A cross-appeal raises the question whether the Secretary must continue federal financial assistance to the State of Ohio for the period...

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