In the case of Califano, Secretary of Health, Education, and Welfare v. Torres (1977), the U.S Supreme Court ruled in favor of Califano. The issue at hand was whether a resident of Puerto Rico could receive Supplemental Security Income (SSI) benefits under the Social Security Act even though they were not living within one of the 50 states or District Columbia. Mr. Torres argued that this exclusion violated his Fifth Amendment rights to due process and equal protection under law as he had previously received SSI while residing in New York before moving back to Puerto Rico. The court held that Congress's decision to exclude residents from territories such as Puerto Rico from receiving SSI benefits did not violate any constitutional rights because these areas do not contribute federal income taxes which fund these programs. Therefore, it is rational for Congress to limit their distribution accordingly.

In the dissenting opinion for Califano v. Torres, Justice William Brennan disagreed with the majority's decision to uphold a provision of the Social Security Act that denied Supplemental Security Income (SSI) benefits to residents of Puerto Rico. He argued that this denial was based on an arbitrary distinction between citizens living in different territories and thus violated equal protection principles embedded in Fifth Amendment due process guarantees. Furthermore, he contended that Congress' power over territories does not include the authority to discriminate against their residents without rational basis. The majority justified its ruling by arguing fiscal considerations and administrative convenience; however, Brennan dismissed these reasons as insufficiently compelling governmental interests to justify such discrimination under strict scrutiny review standards applied in cases involving fundamental rights or suspect classifications.