Why Tennessee is citing an Obamacare ruling in a lawsuit against refugee resettlement

Tennessee is heavily relying on a landmark U.S. Supreme Court case in favor of the controversial Affordable Care Act to bolster its lawsuit against the federal government over refugee resettlement.

In a 33-page filing submitted Friday, the state rejects a motion to dismiss its lawsuit, citing National Federation of Independent Business v. Sebelius, the Supreme Court case that enacted provisions of the Affordable Care Act, also known as Obamacare.

The reference is tied to possible Medicaid cuts threatened by federal officials if Tennessee refuses to help resettle refugees. 

"In NFIB, a case dealing with the exact same threat of withholding Medicaid funds," the filing states, "the Supreme Court held that the mere 'threatened loss of over 10 percent of a state's overall budget...is economic dragooning that leaves the state with no real option."

Attorneys for Tennessee's case argue that, like Sebelius, the state is also being threatened by the federal government. 

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The state's attorneys reiterated a claim made in their initial filing that Tennessee would annually lose $7 billion, or 20 percent of its state budget, if the federal government were to withhold all federal Medicaid funds should the state refuse to cover portions of the resettlement program.

"The refugee resettlement program imposes a hardship on (the state) by expending state funds, costing Tennessee approximately $31 million per year," the latest filing adds.

Tennessee's refugee resettlement program is currently operated by Catholic Charities. Catholic Charities officials say the state doesn't spend any money on resettlement efforts now, but refugees are eligible for some state services like schools and health care that may require taxpayer money.

Tennessee's case, which came after the legislature approved a resolution in 2016 to initiate the lawsuit, is led by the Thomas More Law Center, a Michigan-based private legal group.

The arguments are all part of the case brought in March, when Tennessee became the first state in the nation to sue the federal government over refugee resettlement on the grounds it amounts to a violation by federal officials of the 10th Amendment.

The amendment says the federal government possesses only the powers delegated to it by the U.S. Constitution, with all other powers reserved for the states.

The state's latest filing rejects many of the claims made in June by the federal government in their motion to dismiss the case. 

The federal government argues the Tennessee General Assembly is not able to serve as plaintiffs for the case and Tennessee is not forced to help pay for the refugee resettlement program. Attorneys for the federal government also argue the Sebelius case has no application in the state's lawsuit. 

Beyond citing the landmark Supreme Court case, the state at one point quotes former President James Madison's writing in the U.S. Constitution to argue the federal government can't force states to enact and enforce federal programs. 

The state also takes some jabs at federal authorities, saying, "Unlike the federal government, the state of Tennessee must balance its budget."

The federal government has until Aug. 18 to reply to Tennessee's latest filing. 

Reach Joel Ebert at jebert@tennessean.com or 615-772-1681 and on Twitter @joelebert29.