DKT International, Inc. v. United States Agency for International Development

The United States Agency for International Development (USAID) (defendant) administered grants pursuant to the United States Leadership against HIV/AIDS, Tuberculosis, and Malaria Act (the act). The act allowed the distribution of funds to private organizations active in the international fight against HIV/AIDS. The act required grant recipients to have a policy opposing legalized prostitution as a prerequisite to receiving grant money. USAID required a certification in all grant contracts that the grant recipient had a policy opposing prostitution and sex trafficking. USAID provided Family Health International (FHI) a grant under the act. FHI provided DKT International (plaintiff) a subgrant for its work distributing condoms and lubricant in Vietnam. The subgrant agreement required DKT to certify that it had a policy opposing prostitution and sex trafficking. DKT refused to sign the agreement, citing its goal of removing the stigma surrounding sex workers. As a result of DKT’s refusal, FHI canceled the subgrant. DKT sued USAID in the United States District Court for the District of Columbia, alleging the act’s certification requirement violated the First Amendment by requiring DKT to state a policy with which it disagreed, thereby restricting DKT’s speech in other programs for which DKT did not receive federal funding. The federal district court found in favor of DKT and ruled that the act violated the First Amendment. USAID appealed to the United States Court of Appeals for the District of Columbia Circuit, arguing the certification requirement was constitutional.