Edelman v. Jordan
Facts
Illinois administered the federal-state Aid to the Aged, Blind, or Disabled program under state regulations that allegedly conflicted with federal time-limit regulations. Respondent alleged that Illinois officials processed applications too slowly and authorized benefits only from the month of approval, excluding earlier months for which applicants were eligible under federal law. The District Court declared the conflicting Illinois provision invalid, enjoined future noncompliance, and ordered state officials to release and remit benefits wrongfully withheld to eligible applicants for an earlier period. The retroactive payment order would be satisfied from Illinois public funds rather than from the officials' personal resources.
Issue
Does the Eleventh Amendment permit a federal court to order state officials to make retroactive payments of AABD benefits wrongfully withheld, when those payments must come from the state's general revenues? Also, did Illinois waive any Eleventh Amendment immunity by participating in the federal AABD program or by failing to raise the defense earlier?
Rule
A suit by private parties seeking retroactive monetary relief that in practical effect requires payment from the state treasury is barred by the Eleventh Amendment, even when nominally directed at state officials and labeled equitable restitution. Under Ex parte Young, federal courts may grant prospective injunctive relief against state officials to require future compliance with federal law, and ancillary fiscal effects on the state treasury from such prospective relief are permissible. Waiver of Eleventh Amendment immunity will be found only by the most express language or overwhelming implication from the text, and a State's mere participation in a federal spending program does not constitute such waiver.
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