Third Circuit: Delaware, New Jersey & Pennsylvania
Verified September 2026.
The Third Circuit (Delaware, New Jersey, Pennsylvania) includes both a model of successful Olmstead settlement completion and ongoing litigation on institutional closure. Delaware stands unique as the only state to have successfully concluded a DOJ Olmstead settlement with documented compliance. New Jersey and Pennsylvania continue active institutional closure litigation.
Delaware: United States v. Delaware (District of Delaware) — Model Completion
Case Name: United States v. Delaware, 11-cv-591 (D. Del.)
Case Resources:
- Google Scholar Case Law
- PACER Federal Court Records (11-cv-591)
- DOJ Civil Rights Case Information
- Disability Rights Delaware (P&A)
The Issue: State psychiatric system reliance and inadequate community mental health services for individuals with serious mental illness.
Settlement: July 6, 2011
Unique Significance: Delaware is the only state in the country to have successfully completed a DOJ Olmstead settlement with documented compliance. Settlement concluded October 2016.
What Changed: Delaware expanded community mental health services, reduced state psychiatric hospital census, and built capacity for individuals with serious mental illness in the community. Post-settlement data showed sustained integration gains and reduced psychiatric hospitalizations.
Why It Matters: Delaware’s successful completion serves as a reference point and proof-of-concept that states can meet Olmstead compliance requirements when federal oversight and adequate funding are in place.
New Jersey: Disability Rights New Jersey v. Velez
Case Name: Disability Rights New Jersey v. Velez, 05-cv-4723 (D.N.J.)
Case Resources:
- Google Scholar Case Search
- PACER Federal Court Records (05-cv-4723)
- Disability Rights New Jersey (P&A)
The Issue: State-operated developmental centers (institutions) housing individuals with developmental disabilities; unnecessary segregation and failure to transition individuals to community settings.
Current Status: Ongoing litigation and settlement monitoring. New Jersey remains in active litigation regarding institutional closure and community transition of residents.
Enforcement Focus: The case monitors New Jersey’s progress on:
- Institutional closure and transition of residents to community-based settings
- Quality of community placements and adequate supports
- Adequate HCBS capacity and waiting list management
Pennsylvania: Benjamin v. Pennsylvania DPW & Smith v. Pennsylvania DPW
Benjamin Case: Benjamin v. Pennsylvania DPW, 09-cv-1182 (M.D. Pa.)
Benjamin Case Resources:
Smith Case: Smith v. Pennsylvania DPW, 2:13-cv-05670 (E.D. Pa.)
Smith Case Resources:
The Issues:
- Benjamin case: Congregate care institutions and unnecessary segregation of individuals with developmental disabilities
- Smith case: Act 150 attendant care funding limitations affecting individuals’ ability to live in the community
Status: Active litigation. Both cases address the failure of Pennsylvania’s Medicaid system to adequately support home and community-based services as alternatives to congregate care.
Current Enforcement: Ongoing federal monitoring of Pennsylvania’s progress on:
- HCBS capacity expansion
- Institutional closure or downsizing
- Personal care attendant adequacy and funding
Third Circuit Enforcement Pattern
The Third Circuit encompasses both successful compliance (Delaware) and ongoing enforcement (New Jersey, Pennsylvania). The diversity of enforcement approaches in this circuit—from completed settlement to active litigation—illustrates the range of what is possible under federal Olmstead enforcement and the importance of sustained federal monitoring.
Key Takeaway: Third Circuit courts have been willing to find Olmstead violations related to both institutional operations and inadequate community capacity. The circuit’s track record shows that federal enforcement can drive measurable systemic change when backed by adequate resources and sustained commitment.