In what House Speaker Paul Ryan called a "historic win for the Constitution and the American people," a U.S. federal judge ruled in favour of the House of Representatives' lawsuit challenging subsidies made by the Obama administration under the Affordable Care Act, or Obamacare.
U.S. District Court Judge Rosemary Collyer, an appointee of George W. Bush, ruled that Section 1402 of the Act, which authorises reimbursements to insurers, was made without authority from Congress and is therefore unconstitutional, CBN News reports.
The Court will enter judgment in favour of the House of Representatives and enjoin the use of unappropriated monies to fund reimbursements due to insurers under Section 1402. The Court will stay its injunction, however, pending appeal by either or both parties, Collyer ruled.
In her ruling, Collyer said paying reimbursements under Section 1402 "without an appropriation violates the Constitution."
"Congress authorised reduced cost sharing but did not appropriate monies for it, in the FY 2014 budget or since. Congress is the only source for such an appropriation, and no public money can be spent without one," she wrote.
White House Press Secretary Josh Earnest said this is the first time in U.S. history that Congress has been allowed to sue the Executive branch over a disagreement on how to interpret a statute.
"And it's unfortunate that Republicans have resorted to a taxpayer-funded lawsuit to refight a political fight that they keep losing. They've been losing this fight for six years. And they'll lose it again," he said.
Ryan applauded the court ruling, saying it underscored that the Obama administration "overreached by spending taxpayer money without approval from the people's representatives. Here, the Executive branch is being held accountable to We the People, and that's why this decision is very good news."
Last September, Collyer ruled that the House of Representatives had legal standing to pursue the lawsuit against Obamacare.
"Today's Obamacare decision is a victory for the American people, and for House Republicans, who have stood firm for the rule of law," said former House Speaker John Boehner.
