Supreme Court: Trump can use Pentagon funds for border wall
Notable Attorneys
The Supreme Court cleared the way for the Trump administration to tap billions of dollars in Pentagon funds to build sections of a border wall with Mexico.
The court’s five conservative justices gave the administration the green light on Friday to begin work on four contracts it has awarded using Defense Department money. Funding for the projects had been frozen by lower courts while a lawsuit over the money proceeded. The court’s four liberal justices wouldn’t have allowed construction to start.
The justices’ decision to lift the freeze on the money allows President Donald Trump to make progress on a major 2016 campaign promise heading into his race for a second term. Trump tweeted after the announcement: “Wow! Big VICTORY on the Wall. The United States Supreme Court overturns lower court injunction, allows Southern Border Wall to proceed. Big WIN for Border Security and the Rule of Law!”
The Supreme Court’s action reverses the decision of a trial court, which initially froze the funds in May, and an appeals court, which kept that freeze in place earlier this month. The freeze had prevented the government from tapping approximately $2.5 billion in Defense Department money to replace existing sections of barrier in Arizona, California and New Mexico with more robust fencing.
The case the Supreme Court ruled in began after the 35-day partial government shutdown that started in December of last year. Trump ended the shutdown in February after Congress gave him approximately $1.4 billion in border wall funding. But the amount was far less than the $5.7 billion he was seeking, and Trump then declared a national emergency to take cash from other government accounts to use to construct sections of wall.
The money Trump identified includes $3.6 billion from military construction funds, $2.5 billion in Defense Department money and $600 million from the Treasury Department’s asset forfeiture fund.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.