Prometheus 6

Justice Dept. Says Acorn Can Be Paid
By CHARLIE SAVAGE

But the group has become a prime target for conservative critics, and on Oct. 1, President Obama signed into law a spending bill that included a provision that said no taxpayer money — including money authorized by previous legislation — could be “provided to” the group or its affiliates.

A Housing and Urban Development Department lawyer asked the Justice Department whether the new law meant that pre-existing contracts with Acorn should be broken. And in a memorandum signed Oct. 23 and posted online this week, Mr. Barron said the government should continue to make payments to Acorn as required by such contracts....

Mr. Barron said he had based his conclusion on the statute’s phrase “provided to.” This phrase, he said, has no clearly defined meaning in the realm of government spending — unlike words like “obligate” and “expend.”

Citing dictionary and thesaurus entries, he said “provided to” could be interpreted as meaning only instances in which an official was making “discretionary choices” about whether to give the group money, rather than instances in which the transfer of money to Acorn was required to satisfy contractual obligations.

Since there are two possible ways to construe the term “provided to,” Mr. Barron wrote, it makes sense to pick the interpretation that allows the government to avoid breaching contracts.

Moreover, he argued, requiring the government to cancel contracts with a specifically named entity — “including even in cases where performance has already been completed but payment has not been rendered” — would raise constitutional concerns best avoided by interpreting the law differently.