Engelman v. Amos

A New Jersey regulation applicable to payments under the federally financed Aid to Families With Dependent Children program was challenged on income-calculation grounds and, since it authorized payments directly to vendors who provide goods or services to beneficiaries, on the ground that it conflicted with § 406 of the Social Security Act. The District Court upheld the challenged, enjoined enforcement of the regulation "insofar as it violates the federal statute," and ordered the State to "revise the regulation to conform to the federal statute."

Held: Section 406 does not prohibit a State from making vendor payments solely from nonreimbursable state funds.

333 F. Supp. 1109, affirmed as modified.

PER CURIAM.