State of Alaska, Department of Health and Social Services, Division of Public Assistance, Petitioner v. Lester…

Summary

The Alaska Supreme Court held that the Department of Health and Social Services must consider the full five‑step SSI analysis, including steps four and five, when determining eligibility for state interim assistance, because limiting the analysis would exclude a category of applicants eligible for federal SSI. Accordingly, the court affirmed the superior court’s decision in part, reversed it in part, and remanded for further proceedings. The court applied a substitution‑of‑judgment standard of review, finding the agency’s interpretation of the statute unreasonable.