In the case of Welch v. Texas Department of Highways and Public Transportation, et al., 1986, the U.S. Supreme Court ruled that a state agency could not be sued in federal court for damages under Section 504 of the Rehabilitation Act of 1973 unless it had waived its Eleventh Amendment immunity or Congress had overridden it. The plaintiff, John Welch, was an employee who claimed he was fired due to his epilepsy condition which violated Section 504 prohibiting discrimination against individuals with disabilities by programs receiving federal financial assistance. However, since Texas Department's receipt of federal funds did not constitute a waiver to its Eleventh Amendment immunity from suit in federal court and because Congress didn't abrogate states' sovereign immunity when enacting this law; therefore, Mr.Welch's claim couldn't proceed in Federal Court.

In the dissenting opinion for Welch v. Texas Department of Highways and Public Transportation, Justice White disagreed with the majority's decision to dismiss the case on grounds that it was not properly before them. He argued that this dismissal ignored a clear violation of federal law by state officials in their treatment of Mrs. Welch after her husband's death in a highway accident caused by an allegedly negligent state employee. According to Justice White, Congress had clearly intended for such cases to be heard under Section 1983 when it passed legislation allowing individuals to sue states for constitutional violations. The majority’s refusal to hear Mrs.Welch’s claim effectively denied her access to justice and undermined Congressional intent behind Section 1983 - which is designed specifically as a remedy against unconstitutional actions by state actors.