In the case of Pennsylvania Department of Public Welfare et al. v. Davenport et ux., 1989, the U.S Supreme Court ruled that a state could recover welfare payments from a recipient's estate after their death to offset costs incurred by providing assistance during their lifetime. The court held that such recovery did not violate federal law or infringe upon recipients' rights under the Social Security Act, which prohibits states from imposing any lien against property due to medical assistance paid on behalf of an individual. The ruling was based on distinguishing between liens imposed during life (which are prohibited) and adjustments made after death (which are permitted). This decision allowed states greater flexibility in managing public welfare programs and recovering funds expended for these purposes.

In the dissenting opinion for Pennsylvania Department of Public Welfare et al. v. Davenport Et Ux., Justice Brennan, joined by Justices Marshall and Blackmun, argued that the majority's decision was inconsistent with previous Supreme Court rulings on welfare benefits as property rights protected under the Due Process Clause of the Fourteenth Amendment. They contended that a state cannot terminate or reduce public assistance without providing recipients an opportunity for a hearing prior to such action. The dissenting justices believed that this principle should apply regardless of whether changes in benefits are due to legislative adjustments or individual circumstances. They also criticized the majority's reliance on procedural safeguards provided by federal law, arguing these were insufficient substitutes for pre-termination hearings at state level which would allow individuals to challenge any alleged factual errors affecting their eligibility or benefit levels before suffering potential hardship from reduced aid.