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62. Should the court uphold the agency's decision?
The farmer has sued the agency in federal district court, claiming only that the denial of her application without the opportunity for a hearing violated the due process clause of the Fifth Amendment. The farmer claims that she could have proved at such a hearing that without the federal loan it would be necessary for her to sell her farm.
Two weeks after the program was established, a family farmer applied to the agency for a loan. Agency officials promptly reviewed her application and summarily denied it.
Congress recently enacted a statute creating a program that made federal loans available to family farmers who had been unable to obtain loans from private lenders. Congress appropriated a fixed sum of money to fund loans made pursuant to the program and gave a designated federal agency discretion to decide which applicants were to receive the loans.
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A is incorrect. Due process obligates agencies to provide an individual with an opportunity for a hearing only when the agency makes an adjudicatory decision that deprives the individual of a property or liberty interest that is protected. As explained above, the agency's decision should be upheld because the Due Process Clause does not require the government to provide the farmer an opportunity for an administrative hearing on her loan application because she had no legitimate claim of entitlement to a loan.
B is incorrect. The farmer's decision to pursue her chosen occupation does not qualify as a liberty interest protected by the Due Process Clause.
D is incorrect. This answer reaches the correct answer with the wrong reasoning. Although Congress has broad authority to control the distribution of appropriated funds, that authority is subject to many constitutional limitations on the legislative power, including the Due Process Clause of the Fifth Amendment.