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Economic Regulation & Property

National Federation of Independent Business v. Sebelius

Decided: 2012

In brief

Upheld the Affordable Care Act's individual mandate as a valid tax while limiting Congress's Medicaid-expansion leverage over states.

The Court's ruling in depth

In a fractured decision, Chief Justice Roberts joined the liberals to save the ACA's individual mandate as a valid exercise of Congress's taxing power, even while agreeing that it could not be sustained under the Commerce Clause. He also joined a different majority to hold that Congress could not compel states to expand Medicaid by threatening loss of all existing Medicaid funds. NFIB is a landmark for both the ACA's survival and its imposition of new limits on federal spending-clause coercion of the states.

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