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No. 10700314
United States Court of Appeals for the Ninth Circuit
Community Legal Services in East Palo Alto v. United States Department of Health and Human S
No. 10700314 · Decided October 10, 2025
No. 10700314·Ninth Circuit · 2025·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
October 10, 2025
Citation
No. 10700314
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
COMMUNITY LEGAL SERVICES No. 25-2808
IN EAST PALO ALTO; SOCIAL
D.C. No.
JUSTICE COLLABORATIVE;
3:25-cv-02847-
AMICA CENTER FOR
AMO
IMMIGRANT RIGHTS;
ESTRELLA DEL PASO;
FLORENCE IMMIGRANT AND ORDER
REFUGEE RIGHTS PROJECT;
GALVESTON-HOUSTON
IMMIGRANT REPRESENTATION
PROJECT; IMMIGRANT
DEFENDERS LAW CENTER;
NATIONAL IMMIGRANT
JUSTICE CENTER; NORTHWEST
IMMIGRANT RIGHTS PROJECT;
ROCKY MOUNTAIN
IMMIGRANT ADVOCACY
NETWORK; VERMONT ASYLUM
ASSISTANCE PROJECT,
Plaintiffs - Appellees,
v.
UNITED STATES DEPARTMENT
OF HEALTH AND HUMAN
SERVICES; UNITED STATES
DEPARTMENT OF THE
2 CMTY. LEGAL SERVICES V. U.S. HHS
INTERIOR; OFFICE OF REFUGEE
RESETTLEMENT,
Defendants - Appellants.
Filed October 10, 2025
Before: William A. Fletcher, Consuelo M. Callahan, and
Lucy H. Koh, Circuit Judges.
Order;
Statement by Judges W. Fletcher and Koh;
Dissent by Judges Bumatay and VanDyke
SUMMARY *
Immigration/Tucker Act/Stays
The panel denied a petition for rehearing en banc in a
case in which the panel denied the Government’s motion for
a stay pending appeal of the district court’s order
preliminarily enjoining the Government from terminating all
funding for counsel to represent unaccompanied children in
immigration proceedings.
Respecting the denial of rehearing en banc, Judges W.
Fletcher and Koh wrote that Plaintiffs here have no contract
with the Government, do not invoke any contractual terms
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
CMTY. LEGAL SERVICES V. U.S. HHS 3
as the basis for their action, and do not seek a contractual
remedy from the Government. Rather, Plaintiffs’
Administrative Procedure Act claims seek declaratory and
injunctive relief requiring Defendants’ compliance with
their statutory obligations under the Trafficking Victims
Protection Reauthorization Act of 2008 and their regulatory
obligations under the Foundational Rule promulgated to
implement the statute. Accordingly, Plaintiffs’ claims fall
outside the jurisdictional bounds of the Tucker Act, which
vests exclusive jurisdiction in the Court of Federal Claims
over any claim against the United States that is founded upon
a contract with the United States, and squarely within the
purview of the Administrative Procedure Act.
Judges Bumatay and VanDyke, joined by Judges
Callahan, Ikuta, Bennett, R. Nelson, Collins, Lee, and Bress,
dissented from the denial of rehearing en banc. Judges
Bumatay and VanDyke wrote that the court should have
reheard the case en banc because the Government, at a
minimum, is likely to succeed in showing that the district
court lacked jurisdiction. Specifically, Judges Bumatay and
VanDyke concluded that Plaintiffs’ claims are
fundamentally contract claims that belong in the Court of
Federal Claims under the Tucker Act. Judges Bumatay and
VanDyke also wrote that Department of Education and NIH
control this case, but the Ninth Circuit has failed to respect
the Supreme Court’s guidance and has let stand an injunction
that violates the limits Congress has set on the courts’
jurisdiction and interferes with the Executive’s prerogative
to set and review policies.
4 CMTY. LEGAL SERVICES V. U.S. HHS
ORDER
Judge Koh voted to deny the petition for rehearing en
banc and Judge W. Fletcher so recommended. Judge
Callahan voted to grant the petition for rehearing en banc. A
judge of the court requested a vote on whether to rehear the
matter en banc. The matter failed to receive a majority of the
votes of the active judges in favor of en banc consideration.
Fed. R. App. P. 35. Judge H.A. Thomas did not participate
in the deliberations or vote in this case. The petition for
rehearing en banc, Dkt. No. 23, is DENIED.
W. FLETCHER and KOH, Circuit Judges, respecting the
denial of rehearing en banc:
This case concerns the Government’s statutory and
regulatory obligations to ensure that unaccompanied
children in immigration proceedings have legal
representation. Earlier this year, the Government abruptly
halted funding for its only program ensuring legal
representation for unaccompanied children. Plaintiffs
brought this lawsuit arguing that the Government is failing
to meet its statutory and regulatory obligations and that the
Government’s actions were arbitrary and capricious. The
district court agreed, and we declined to stay the district
court’s preliminary injunction pending appeal.
Our dissenting colleagues attempt to reframe Plaintiffs’
suit as a breach of contract action against the Government,
which could only be brought in the Court of Federal Claims.
We respectfully disagree.
CMTY. LEGAL SERVICES V. U.S. HHS 5
The bottom line is that Plaintiffs have no contract with
the Government. They do not invoke any contractual terms
as the basis for their action. Nor do they seek a contractual
remedy from the Government. Rather, Plaintiffs seek
declaratory and injunctive relief requiring compliance with
the statutory obligations set out by Congress and the
regulatory obligations set forth by Defendants themselves.
Thus, as the district court put it, “Plaintiffs’ claims have no
business before the [Court of Federal] Claims.” Cmty. Legal
Servs. in E. Palo Alto v. U.S. Dep’t of Health & Hum. Servs.,
780 F. Supp. 3d 897, 917 (N.D. Cal. 2025).
I.
The Trafficking Victims Protection Reauthorization Act
of 2008 (“TVPRA”) requires the Department of Health and
Human Services (“HHS”) to “ensure, to the greatest extent
practicable,” that all unaccompanied children in immigration
custody receive legal representation. 8 U.S.C. § 1232(c)(5).
To implement this statutory mandate, HHS’s Office of
Refugee Resettlement (“ORR”) promulgated the
“Foundational Rule,” which provides that ORR “shall fund
legal service providers to provide direct immigration legal
representation for certain unaccompanied children, subject
to ORR’s discretion and available appropriations.” 45 C.F.R.
§ 410.1309(a)(4) (2024) (emphasis added).
Since 2012, and as recently as March 15, 2025, Congress
has consistently appropriated funds to ensure compliance
with the TVPRA’s mandate. See Full-Year Continuing
Appropriations and Extensions Act, Pub. L. No. 119-4,
§ 1101(8), 139 Stat. 9, 11 (2025). Such funding is critical,
given that the TVPRA was passed after a pilot program
found that ORR could not meet the legal needs of
unaccompanied minors through pro bono counsel alone. See
6 CMTY. LEGAL SERVICES V. U.S. HHS
Olga Byrne & Elise Miller, The Flow of Unaccompanied
Children Through the Immigration System 22–23, VERA
INST. JUST. (March 2012), https://perma.cc/M352-AA3N.
As a recent Senate report stated, “[t]he Committee also
expects these funds will be used to provide access to counsel,
consistent with the goals of the Trafficking Victims
Protection Reauthorization Act of 2008 for all children to
have access to counsel in their immigration proceedings.” S.
Rep. No. 118-84, at 169 (2023). In accordance with those
congressional appropriations, every presidential
administration since the TVPRA’s passage has provided
funding for direct representation of unaccompanied children
pursuant to Section 1232(c)(5).
But just six days after the latest congressional
appropriation, HHS, ORR, and the Department of the
Interior (collectively, the “Government”) made an abrupt
about-face. The Government cancelled all funding for direct
representation of unaccompanied children (the
“Cancellation Order”). At the time of the Cancellation
Order, such representation was being provided through a
single agreement with the Acacia Center for Justice (the
“Acacia contract”). Cmty. Legal Servs., 780 F. Supp. 3d at
909. The Acacia contract contained a provision “reserv[ing]
the right to terminate th[e] contract, or any part [t]hereof, for
[the Government’s] sole convenience.” The Government
stated that it was terminating funding for “the Government’s
convenience” in the Cancellation Order, but it provided no
alternative plan to comply with the TVPRA and the
Foundational Rule.
Plaintiffs are organizations dedicated to ensuring legal
representation for persons in immigration proceedings. That
mission includes providing representation for the uniquely
vulnerable population of unaccompanied children. As one
CMTY. LEGAL SERVICES V. U.S. HHS 7
organization explained, a “central tenet of [its] mission has
been that no child should have to stand alone in court.” To
support their work, Plaintiffs have received federal funding
disbursed through Acacia. But Acacia is not a plaintiff in this
case. Plaintiffs are not a party to Acacia’s contract with the
Government. Nor have Plaintiffs alleged that the
Government breached its contract with Acacia. Indeed,
Plaintiffs are unlikely to succeed on such a claim because of
the Acacia contract’s termination provision. Rather,
Plaintiffs challenged the Government’s failure to comply
with the TVPRA and the Foundational Rule under the
Administrative Procedure Act (“APA”).
The APA “sets forth the procedures by which federal
agencies are accountable to the public and their actions
subject to review by the courts.” Franklin v. Massachusetts,
505 U.S. 788, 796 (1992). It requires agencies to engage in
“reasoned decisionmaking,” Michigan v. EPA, 576 U.S.
743, 750 (2015) (cleaned up), and directs that agency actions
be “set aside” if they are “arbitrary” or “capricious,” 5
U.S.C. § 706(2)(A). Likewise, the APA requires reviewing
courts to “hold unlawful and set aside agency action . . .
found to be . . . otherwise not in accordance with law.” Id.
Here, Plaintiffs brought garden-variety APA claims.
First, Plaintiffs alleged that the Government’s actions were
“not in accordance” with the Government’s statutory
obligations under the TVPRA because, despite available
congressional appropriations, the Government cancelled all
funding and provided no alternative plan to ensure legal
representation for unaccompanied children. Second, for the
same reasons, Plaintiffs alleged that the Government’s
behavior was “not in accordance” with ORR’s own
regulation, the Foundational Rule. Third, Plaintiffs alleged
that the Government’s sudden change of position was
8 CMTY. LEGAL SERVICES V. U.S. HHS
arbitrary and capricious because the Government provided
no reasoned explanation for its actions and failed to consider
critical reliance issues—like ongoing legal proceedings for
unaccompanied children—before halting all funding.
Together, Plaintiffs alleged that the Government’s
failure to comply with the TVPRA, Foundational Rule, and
APA harmed Plaintiffs’ missions to ensure that
unaccompanied children in immigration proceedings have
legal representation. As a remedy, Plaintiffs sought relief
untethered from their contractual relationship with Acacia.
Specifically, Plaintiffs requested declaratory relief that an
APA violation occurred, an order “[s]et[ting] aside” any
actions that violate the APA, and an injunction preventing
the Government “from ceasing to fund counsel to represent
unaccompanied children in violation of the TVPRA and the
Foundational Rule.” To put a finer point on it, Plaintiffs did
not demand an injunction that the Government pay money to
Plaintiffs. Rather, Plaintiffs sought prospective relief
requiring the Government to take some action to use the
congressionally appropriated funds to comply with the
TVPRA and the Foundational Rule.
Through preliminary injunction proceedings, the district
court found that: (1) congressionally appropriated funds for
direct representation remained available, (2) the
Government cut all funding for direct representation of
unaccompanied children, (3) the Cancellation Order’s sole
justification was “the Government’s convenience,” 1 (4) the
Government disclosed no plan to ensure ongoing
1
The Government’s district court declaration stated that the Acacia
contract was cancelled “to reduce spending and achieve more cost
efficiency.” But, as the district court explained, “[n]one of these
rationales are evidenced” in the Cancellation Order.
CMTY. LEGAL SERVICES V. U.S. HHS 9
representation for unaccompanied children, and (5) by
cancelling the use of congressionally appropriated funds, the
Government “effectively eliminat[ed] direct representation
for unaccompanied children.”
Thus, the district court determined that Plaintiffs were
likely to succeed on all three APA claims and issued a
preliminary injunction against the cancellation of the
congressionally authorized funding. We denied the
Government’s motion for a stay pending appeal. See Cmty.
Legal Servs. in E. Palo Alto v. U.S. Dep’t of Health & Hum.
Servs., 137 F.4th 932, 937 (9th Cir. 2025). An en banc call
to review our denial of the Government’s stay motion failed,
and several of our colleagues now write to dissent from the
failure to rehear our stay denial en banc. In the meantime,
briefing on the merits of the appeal of the preliminary
injunction was completed on August 14, 2025, and will be
ruled upon by a merits panel.
With that context, we turn to the question of whether the
district court and our court or the Court of Federal Claims
have subject matter jurisdiction over this suit.
II.
We have subject matter jurisdiction over suits brought
under the APA. 5 U.S.C. § 702. The APA “confers a general
cause of action upon persons ‘adversely affected or
aggrieved by agency action within the meaning of a relevant
statute.’” Block v. Cmty. Nutrition Inst., 467 U.S. 340, 345
(1984) (quoting 5 U.S.C. § 702). The APA’s waiver of
sovereign immunity, however, “does not apply ‘if any other
statute that grants consent to suit expressly or impliedly
forbids the relief which is sought.’” Dep’t of Educ. v.
California, 604 U.S. 650, 651 (2025) (quoting 5 U.S.C.
§ 702). As relevant here, the Tucker Act, 28 U.S.C. § 1491,
10 CMTY. LEGAL SERVICES V. U.S. HHS
vests exclusive jurisdiction in the Court of Federal Claims
over any claim against the United States that is founded
“upon any express or implied contract with the United
States.”
The Tucker Act “‘impliedly forbid[s]’ an APA action
seeking injunctive and declaratory relief only if that action
is a ‘disguised’ breach-of-contract claim.” United
Aeronautical Corp. v. U.S. Air Force, 80 F.4th 1017, 1026
(9th Cir. 2023) (quoting Megapulse, Inc. v. Lewis, 672 F.2d
959, 968 (D.C. Cir. 1982)). In making this determination, we
“look[ ] to (1) ‘the source of the rights upon which the
plaintiff bases its claims’ and (2) ‘the type of relief sought
(or appropriate).’” Id. (quoting Doe v. Tenet, 329 F.3d 1135,
1141 (9th Cir. 2003)). Moreover, courts “categorically reject
the suggestion that a federal district court can be deprived of
jurisdiction by the Tucker Act when no jurisdiction lies in
the Court of Federal Claims.” Tootle v. Sec’y of Navy, 446
F.3d 167, 176 (D.C. Cir. 2006).
Contrary to the dissent, we have jurisdiction over
Plaintiffs’ APA claims, and Plaintiffs do not bring a
“disguised” breach-of-contract claim in this case. Dissent at
22–23. First, Plaintiffs’ claims stem from the Government’s
failure to comply with its statutory obligations under the
TVPRA and its regulatory obligations under the
Foundational Rule, and Plaintiffs do not seek to enforce the
Acacia contract. Second, Plaintiffs do not seek a money
damages for breach of contract. Rather, they “seek to ensure
representation for unaccompanied children in immigration
proceedings, regardless of which lawyers provide it.” Cmty.
Legal Servs., 780 F. Supp. 3d at 917. Finally, this case also
differs from the U.S. Supreme Court’s decisions in
Department of Education v. California, 604 U.S. 650 (2025),
and National Institutes of Health v. American Public Health
CMTY. LEGAL SERVICES V. U.S. HHS 11
Ass’n (“NIH”), 145 S. Ct. 2658 (2025). Unlike the plaintiffs
in those cases, Plaintiffs have no contractual relationship
with the Government. We address each point in turn.
A.
Start with the source of Plaintiffs’ rights. United
Aeronautical, 80 F.4th at 1026. To evaluate the “source of
rights,” we consider (1) whether resolution of Plaintiffs’
claims primarily require examination of statutes or
regulations that the Government allegedly violated;
(2) whether Plaintiffs’ rights exist independently of any
contract; and (3) whether Plaintiffs seek to enforce a
contractual duty imposed upon the government. See Crowley
Gov’t Servs., Inc. v. Gen. Servs. Admin., 38 F.4th 1099,
1108–09 (D.C. Cir. 2022). Each factor weighs in favor of our
jurisdiction.
First, Plaintiffs’ claims “primarily” turn on “an
examination” of the TVPRA and the Foundational Rule. Id.
Plaintiffs advance standard APA claims that the Government
violated statutory (TVPRA) and regulatory (Foundational
Rule) obligations and acted arbitrarily and capriciously by
changing position without reasoned explanation. See 5
U.S.C. § 706(2)(A).
The APA grants a right to judicial review to any “person
. . . adversely affected or aggrieved by agency action within
the meaning of a relevant statute” when “seeking relief other
than money damages.” Id. § 702. Plaintiffs are such persons
because they have a direct interest in ensuring representation
of unaccompanied children that stands independent from the
Acacia contract. The Government’s non-compliance has
injured Plaintiffs’ attempts to serve their mission. Thus,
Plaintiffs may challenge the Government’s actions under the
APA. See California v. Trump, 963 F.3d 926, 941–42 (9th
12 CMTY. LEGAL SERVICES V. U.S. HHS
Cir. 2020) (a party whose “interests are congruent with those
of Congress and are not ‘inconsistent with the purposes
implicit in the statute’” is a suitable challenger to agency
action under the APA (quoting Match-E-Be-Nash-She-Wish
Band of Pottawatomi Indians v. Patchak, 567 U.S. 209, 225
(2012))).
The TVPRA and the Foundational Rule create statutory
and regulatory obligations for the Government to fund legal
representation for unaccompanied children “to the greatest
extent practicable.” 8 U.S.C. § 1232(c)(5); see also 45
C.F.R. § 410.1309(a)(4). Plaintiffs assert that the
Government’s total refusal to fund direct representation for
unaccompanied children—despite the availability of
congressionally appropriated funds to comply with the
TVPRA’s mandate—violates those statutory and regulatory
obligations. In other words, the core of Plaintiffs’ claims is
that when congressionally appropriated funding is available,
the Government must comply with the TVPRA and the
Foundational Rule. As we explained in our stay order, “the
greatest extent practicable” is not the same as “to no extent
at all.” Cmty. Legal Servs., 137 F.4th at 941. That is not a
contractual claim.
Second, Plaintiffs’ rights “exist[] prior to and apart from
rights created under” the Acacia contract. Crowley, 38 F.4th
at 1107 (alteration in original) (quoting Spectrum Leasing
Corp. v. United States, 764 F.2d 891, 894 (D.C. Cir. 1985)).
The TVPRA and the Foundational Rule—both of which
exist separate and apart from the Acacia contract—are what
require the Government to act. Plaintiffs’ asserted harms
arise from the frustration of their mission and diversion of
resources to ensure unaccompanied children have legal
representation. As the district court explained, “if the
Government takes steps to ensure direct representation
CMTY. LEGAL SERVICES V. U.S. HHS 13
through others, the harm Plaintiffs suffer in the form of
providing representation without payment or diverting
resources would be alleviated.” Cmty. Legal Servs., 780 F.
Supp. 3d at 914. Plaintiffs’ claims do not rely upon the terms
of the Acacia contract or even its existence. Indeed,
Plaintiffs may challenge the Government’s decision to
refuse to ensure the direct representation of unaccompanied
children without reference to the Government’s existing
contractual obligations.
Finally, Plaintiffs do not seek to enforce any specific
contractual term from the Acacia contract. Plaintiffs are not
a party to the Acacia contract. In fact, the Government’s
position throughout this appeal has been that Plaintiffs—as
subcontractors—cannot proceed in the Court of Federal
Claims to enforce the Acacia contract. Moreover, Plaintiffs
do not allege that the Government breached any duty
imposed by the Acacia contract and do not rely on any
provision in the Acacia contract to demonstrate the
Government’s actions were unlawful.
This case is poles apart from the cases the dissent cites,
which involved “disguised” breach-of-contract claims.
Dissent at 36. In each of those cases, the plaintiffs’ claims
depended upon the existence and breach of a contract
between the plaintiffs and the Government. 2 Here, by
2
See Tucson Airport Auth. v. Gen. Dynamics Corp., 136 F.3d 641, 647
(9th Cir. 1998) (finding the Tucker Act applied where plaintiff’s “claims
do not exist independent of the Modification Center Contract” and
plaintiff was “asking the district court to decide what its contract rights
are”); United States v. Park Place Assocs., Ltd., 563 F.3d 907, 932 (9th
Cir. 2009) (“[T]he [Federal Arbitration Act] does not impose a
substantive duty on the United States to participate in arbitration or abide
by an arbitration award. That duty, if it exists, derives from the
contract.”); Ingersoll-Rand Co. v. United States, 780 F.2d 74, 77–80
14 CMTY. LEGAL SERVICES V. U.S. HHS
contrast, Plaintiffs do not “seek to enforce any duty imposed
upon [the Government] by the . . . only relevant contracts to
which [the Government] is a party.” Perry Cap. LLC v.
Mnuchin, 864 F.3d 591, 619 (D.C. Cir. 2017) (concluding
Tucker Act was inapplicable where “[t]he class plaintiffs
d[id] not contend Treasury breached the terms of the Stock
Agreements []or otherwise invoke them except to establish
that Treasury is a controlling shareholder”).
At bottom, Plaintiffs’ claims turn on the TVPRA, the
Foundational Rule, and the APA, not the terms or existence
of the Acacia contract. These are not contract claims in
disguise.
B.
The non-contractual source of Plaintiffs’ rights is
dispositive. See Megapulse, 672 F.2d at 971. In any event,
the second inquiry, “the type of relief sought,” also supports
jurisdiction in the district court. Id. at 968. Under this prong,
we assess whether the “complaint ‘in essence’ seeks
monetary relief.” Crowley, 38 F.4th at 1111 (quoting
Kidwell v. Dep’t of Army, Bd. for Corr. of Mil. Recs., 56 F.3d
279, 284 (D.C. Cir. 1995)). It does not.
Plaintiffs do not seek money damages for breach of
contract or the “explicitly contractual remedy of specific
performance.” Crowley, 38 F.4th at 1107 (internal quotation
marks and citation omitted). Plaintiffs requested an
(D.C. Cir. 1985) (concluding “the essential rights at stake [were]
contractual” where plaintiff’s claim distilled to the allegation that the
government “wrongful[ly] terminat[ed its] contract [with plaintiff] and
unlawful[ly] resolicitat[ed] . . . the contract,” and where plaintiff sought
as relief “an order reinstating the original award of the contract”);
Spectrum Leasing, 764 F.2d at 894 (“The [Act], even if it applied, confers
no such right in the absence of the contract itself.”).
CMTY. LEGAL SERVICES V. U.S. HHS 15
injunction preventing the Government “from ceasing to fund
counsel to represent unaccompanied children in violation of
the TVPRA and the Foundational Rule.” Plaintiffs did not
ask the court to reinstate the Acacia contract. Again,
Plaintiffs’ request is that the Government must take some
action to provide counsel for unaccompanied migrant
children. That someone need not be Acacia or Plaintiffs.
Nor does it matter that the declaratory and injunctive
relief Plaintiffs seek may result in payment of money to
them. As the Supreme Court has long held, “[t]he fact that a
judicial remedy may require one party to pay money to
another is not a sufficient reason to characterize the relief as
‘money damages.’” Bowen v. Massachusetts, 487 U.S. 879,
893 (1988). “[A] plaintiff does not ‘in essence’ seek
monetary relief . . . merely because he or she hints at some
interest in a monetary reward from the federal government
or because success on the merits may obligate the United
States to pay the complainant.” Tootle, 446 F.3d at 176
(emphasis in original) (quoting Kidwell, 56 F.3d at 284). A
plaintiff does not essentially seek money damages where, as
here, “any relief would not be determined by reference to the
terms of the contract,” but would instead exclusively depend
on the Government’s independent legal obligations. Perry
Cap., 864 F.3d at 619.
Plaintiffs do not seek reinstatement of the Acacia
contract. Rather, Plaintiffs challenge the Cancellation Order
because the Government had previously complied with the
TVPRA and the Foundational Rule solely through the
Acacia contract and failed to provide any meaningful
alternative to comply with the TVPRA and the Foundational
Rule. As the district court explained, the record indicates that
the Government put in “no effort to ensure pro bono
counsel” was available, Cmty. Legal Servs., 780 F. Supp. 3d
16 CMTY. LEGAL SERVICES V. U.S. HHS
at 922, and terminated all funding “with no supplemental
plan to ensure unaccompanied children have legal counsel”
at all, id. at 921. Thus, what Plaintiffs seek is for the
Government to comply with the TVPRA and the
Foundational Rule, not the reinstatement of this particular
contract.
Moreover, even if carrying out the Acacia contract was
the only practical way for the Government to comply with
the TVPRA and the Foundational Rule, that does not show
that Plaintiffs are seeking remedies that arise from the
Acacia contract. See Megapulse, 672 F.2d at 971 (“[T]he
mere fact that an injunction would require the same
governmental restraint that specific (non)performance might
require in a contract setting is an insufficient basis to deny a
district court the jurisdiction otherwise available . . . .”).
Rather, that would show only that the Acacia contract arises
from the Government’s antecedent obligation to comply
with the TVPRA and the Foundational Rule. Those
independent legal obligations are what Plaintiffs seek to
enforce, whatever the Government’s ultimate means of
compliance may be. 3
C.
The Supreme Court’s recent decision in NIH reinforces
this conclusion. There, the district court vacated two distinct
agency actions: (1) the issuance of guidance documents, and
(2) the termination of specific research grants pursuant to
3
As the D.C. Circuit explained in Megapulse, if “an agency action may
not be enjoined, even if in clear violation of a specific statute, simply
because that same action might also amount to a breach of contract,” then
“the government could avoid injunctions against activities violative of a
statutory duty simply by contracting not to engage in those activities.”
Megapulse, 672 F.2d at 971.
CMTY. LEGAL SERVICES V. U.S. HHS 17
that guidance. See NIH, 145 S. Ct. at 2661 (Barrett, J.,
concurring in partial grant of application for stay). The
Supreme Court determined that the Tucker Act subsumed
the plaintiffs’ APA challenge to the grant terminations. Id.
at 2658. But a majority of the Justices upheld the district
court’s exercise of jurisdiction over the plaintiffs’ APA
challenge to the guidance documents. Id. at 2661 (Barrett, J.,
concurring in partial grant of application for stay) (“The
Government is not entitled to a stay of the judgments insofar
as they vacate the guidance documents.”).
Unlike the plaintiffs in NIH, Plaintiffs here do not seek
the reinstatement of individual agreements between
Plaintiffs and the Government because no such agreements
exist. Rather, like the challenge to the guidance documents
in NIH, Plaintiffs challenge the Government’s broader
policy of non-compliance with the TVPRA and the
Foundational Rule through the complete termination of
funding combined with no specified alternative means of
compliance. That Plaintiffs’ challenge is “related to grants
does not transform a challenge” into “a claim ‘founded . . .
upon’ contract that only the [Court of Federal Claims] can
hear.” Id. (quoting 28 U.S.C. § 1491(a)(1)).
This case is consistent with the Supreme Court’s recent
decisions in NIH and Department of Education for yet
another reason. Unlike in those cases, Plaintiffs have no
contractual relationship with the Government.
“[T]he Court of Federal Claims can have exclusive
jurisdiction only with respect to matters that Congress has
proclaimed are within its jurisdictional compass.” Tootle,
446 F.3d at 176–77 (emphasis in original). “Under the
Tucker Act, the Court of Federal Claims has jurisdiction
only if there is privity of contract between plaintiffs and the
18 CMTY. LEGAL SERVICES V. U.S. HHS
government.” Park Props. Assocs., L.P. v. United States, 916
F.3d 998, 1002 (Fed. Cir. 2019). No such privity exists here
between Plaintiffs and the Government. 4 Thus, unlike the
claims in NIH and Department of Education, the Court of
Federal Claims’s jurisdiction does not cover this dispute. See
Crowley, 38 F.4th at 1109 (“Because a plaintiff could not
bring this type of tort action in [the Court of Federal Claims]
in the first place, that Court would not have exclusive
jurisdiction of them.”).
We disagree with our dissenting colleagues that
Plaintiffs have no right of action under the APA merely
because they are subcontractors. Dissent at 36. As we
explained above, Plaintiffs bring standard APA claims
grounded in the Government’s statutory and regulatory
obligations from the TVPRA and the Foundational Rule. It
is true that the APA does not “guarantee . . . a federal forum.”
Allen v. Milas, 896 F.3d 1094, 1099 (9th Cir. 2018). But the
APA embodies a “‘strong presumption’ favoring judicial
review of administrative action.” Mach Mining, LLC v.
E.E.O.C., 575 U.S. 480, 486 (2015) (citation omitted). To
overcome this presumption, the Government bears the
“heavy burden” to establish that the “statute’s language or
4
As the dissent notes, there are limited circumstances in which
subcontractors can bring claims in the Court of Federal Claims. See
NavCom Def. Elecs., Inc. v. Ball Corp., 92 F.3d 877, 879–80 (9th Cir.
1996) (explaining that “[a] subcontractor may assert a claim against the
government only by having the prime contractor ‘sponsor’ and certify
the subcontractor’s claim”). Those circumstances do not apply here.
“[T]o establish a pass-through claim,” the prime contractor must show it
is liable to subcontractors for “damages caused by the government’s
alleged breach.” Scott Timber Co. v. United States, 692 F.3d 1365, 1377
(Fed. Cir. 2012) (emphasis added). Again, in this case, there is no breach
of contract because the Government appears to have complied with all
terms of the Acacia contract.
CMTY. LEGAL SERVICES V. U.S. HHS 19
structure demonstrates that Congress wanted an agency to
police its own conduct,” and thus “‘prohibit[ed] all judicial
review’ of the agency’s compliance with a legislative
mandate.” Id. (quoting Dunlop v. Bachowski, 421 U.S. 560,
567 (1975)). The Government has not met that heavy burden
here.
The dissent’s reliance upon North Star Alaska v. United
States, 14 F.3d 36 (9th Cir. 1994), is unpersuasive. Dissent
at 36–37. That case involved a request for equitable
reformation of a contract between the plaintiff and the
Government. See North Star Alaska, 14 F.3d at 37–38. We
therefore held that “contract claims seeking equitable relief”
cannot be heard under the APA in light of the Tucker Act.
Id. at 38 (cleaned up). But it is one thing to say that a
particular remedy is unavailable where the Tucker Act
applies because the plaintiff may recover a different remedy
in the Court of Federal Claims. It is quite another to say that
an individual who cannot sue in the Court of Federal Claims
for any remedy also may not sue in district court.
We therefore reject the notion that two sovereign
immunity waivers, the Tucker Act and the APA, create a
jurisdictional Catch-22 in which no court can consider
Plaintiffs’ claims.
III.
Our court made the correct decision in denying en banc
review. To obtain a stay pending appeal, the Government
was required to make “a strong showing” that it will likely
succeed on the merits, that it will be irreparably harmed
absent a stay, and that the balance of the equities favors a
stay. Nken v. Holder, 556 U.S. 418, 434 (2009). In this
appeal, the Government’s merits arguments have been
limited solely to whether the district court had subject matter
20 CMTY. LEGAL SERVICES V. U.S. HHS
jurisdiction to entertain this appeal. For the reasons stated
above, as well as those stated in our opinion denying the
Government’s motion for a stay, the Government has failed
to make the required “strong showing” that it will likely
succeed on the merits of its jurisdictional argument. See
Cmty. Legal Servs., 137 F.4th at 936–42 (quoting Nken, 556
U.S. at 434).
We emphasize again that, unlike in NIH and Department
of Education, Plaintiffs have no contract with the
Government. Plaintiffs’ claims stem from the Government’s
failure to comply with its statutory obligations under the
TVPRA and regulatory obligations under the Foundational
Rule, not the Acacia contract. And Plaintiffs’ requested
relief “seek[s] to ensure representation for unaccompanied
children in immigration proceedings, regardless of which
lawyers provide it.” Cmty. Legal Servs., 780 F. Supp. 3d at
917. Such claims fall outside the jurisdictional bounds of the
Tucker Act and squarely within the purview of the APA.
CMTY. LEGAL SERVICES V. U.S. HHS 21
BUMATAY and VANDYKE, Circuit Judges, joined by
CALLAHAN, IKUTA, BENNETT, R. NELSON,
COLLINS, LEE, and BRESS, Circuit Judges, dissenting
from the denial of rehearing en banc:
The Supreme Court has warned against an “imperial
Judiciary.” Trump v. CASA, Inc., 606 U.S. 831, 858 (2025).
In recent times, the Court has repeatedly needed to dial back
lower court decisions that exceed the judiciary’s equitable
authority. See, e.g., Noem v. Nat’l TPS All., 606 U.S. __,
2025 WL 2812732 (Oct. 3, 2025) (Mem.); Noem v. Nat’l
TPS All., 145 S. Ct. 2728 (2025) (Mem.); Trump v. Am.
Fed’n of Gov’t Emps., 145 S. Ct. 2635 (2025) (Mem.);
McMahon v. New York, 145 S. Ct. 2643 (2025) (Mem);
Noem v. Doe, 145 S. Ct. 1524 (2025) (Mem.); Trump v.
Wilcox, 145 S. Ct. 1415 (2025). The Constitution and
Congress have placed significant constraints on the role of
the courts, and it is our duty to respect those limits. CASA,
606 U.S. at 858. For cases involving hot-button policy
issues, our review is often constrained—and sometimes
curtailed altogether. That means staying in our lane and
respecting our jurisdictional bounds. But once again, the
Ninth Circuit fails to respect our role and the Supreme
Court’s guidance.
In this case, the Executive Branch, through the
Department of Health and Human Services’ (“HHS”) Office
of Refugee Resettlement (“ORR”), used its regulatory
discretion to stop funding the Acacia Center for Justice, a
non-profit organization that subcontracts with other
organizations to provide legal representation to
unaccompanied minors in immigration proceedings. See 45
C.F.R. § 410.1309(a)(4). ORR stopped funding ongoing
work while the Executive Branch reviews the integrity of its
22 CMTY. LEGAL SERVICES V. U.S. HHS
multimillion-dollar payments to Acacia from its lump-sum
appropriation. Congress appropriates funding this way so
that the Executive can make these choices, for “the very
point of a lump-sum appropriation is to give an agency the
capacity to adapt to changing circumstances and meet its
statutory responsibilities in what it sees as the most effective
or desirable way.” Lincoln v. Vigil, 508 U.S. 182, 192
(1993).
In a familiar pattern, groups opposed to the Executive
Branch’s policies rushed to the federal courthouse in San
Francisco. This time, it was several subcontractors of
Acacia, the non-profit organization that had directly
contracted with the government (“Plaintiffs”). They argued
that the district court should force the government to
continue funding Acacia based on its contract with the
government. The district court agreed and enjoined the
government’s action. A divided panel of our court then
denied a stay pending appeal. See Cmty. Legal Servs. in E.
Palo Alto v. U.S. Dep’t of Health & Hum. Servs., 137 F.4th
932, 937 (9th Cir. 2025).
But the district court never had jurisdiction in this case.
No matter how hard we squint, we can’t avoid the fact that
this is a contract dispute. No statute or regulation entitles
Plaintiffs to funding. Instead, Plaintiffs simply want money
from the federal government based on the government’s
contract with the organization that Plaintiffs have
subcontracted with.
Under the Tucker Act, any plaintiff seeking more than
$10,000 in monetary relief founded upon a federal contract
must bring suit in the Court of Federal Claims. 28 U.S.C.
§§ 1346(a)(2), 1491(a)(1); see also Tucson Airport Auth. v.
Gen. Dynamics Corp., 136 F.3d 641, 646 (9th Cir. 1998)
CMTY. LEGAL SERVICES V. U.S. HHS 23
(“§ 1491 gives the Court of Federal Claims exclusive
jurisdiction to award money damages” over $10,000)
(emphasis added). Trying to avoid this requirement,
Plaintiffs dress their complaint up as an Administrative
Procedure Act (“APA”) challenge. But the APA doesn’t
waive the federal government’s sovereign immunity in
contract suits. See 5 U.S.C. § 702; see also N. Star Alaska
v. United States, 14 F.3d 36, 38 (9th Cir. 1994). Sure, in
some cases, it can be difficult to figure out whether a
plaintiff’s claim is grounded in contract. But this case isn’t
one of them. We never had jurisdiction over this matter, and
our job was simply to stay the lower court’s ultra vires
injunction.
Indeed, the Supreme Court has recently demonstrated
how we should handle cases like this. Just a few months ago,
the Court ruled in a case on all fours with this one. See Dep’t
of Educ. v. California, 604 U.S. 650, 652 (2025) (per
curiam). In that case, several States sued the federal
government to stop the termination of education-related
grants. The Court told us how to analyze these cases:
The APA’s waiver of sovereign immunity
does not apply “if any other statute that grants
consent to suit expressly or impliedly forbids
the relief which is sought.” Nor does the
waiver apply to claims seeking “money
damages.” . . . [T]he APA’s limited waiver
of immunity does not extend to orders “to
enforce a contractual obligation to pay
money” . . . . Instead, the Tucker Act grants
the Court of Federal Claims jurisdiction over
24 CMTY. LEGAL SERVICES V. U.S. HHS
suits based on “any express or implied
contract with the United States.”
Id. at 651 (simplified). The Supreme Court thus stayed the
injunction because “the Government [was] likely to succeed
in showing the District Court lacked jurisdiction to order the
payment of money under the APA.” Id.
While that’s the only direction we should need, we have
more. Several weeks ago, the Supreme Court made even
more clear how we should handle this case. The Court again
intervened to stay a district court injunction based on the
likely lack of jurisdiction in a government contract dispute.
See Nat’l Insts. of Health v. Am. Pub. Health Ass’n, 145 S.
Ct. 2658 (2025) (Mem.) (“NIH”). It held that Department of
Education controlled. Id. Two Justices observed that the
district court in NIH ignored Department of Education when
it “permitted a suit involving materially identical grants to
proceed to final judgment.” See id. at 2663 (Gorsuch, J.,
joined by Kavanaugh, J., concurring in part and dissenting
in part). Regardless of how it was framed, the core of the
suit alleged the unlawful termination of grants—“a breach of
contract claim.” Id. at 2665 (Kavanaugh, J. concurring in
part and dissenting in part). So the district court “likely
lacked jurisdiction,” and the suit “belong[ed] in the Court of
Federal Claims.” Id. at 2661 (Barrett, J., concurring).
We must follow the Supreme Court’s instructions. Even
though the Court’s “interim orders are not conclusive as to
the merits, they inform how a court should exercise its
equitable discretion in like cases.” Trump v. Boyle, 145 S.
Ct. 2653, 2654 (2025). It’s our duty to follow the Supreme
Court’s lead on how to exercise our equitable power. In
cases where a district court’s jurisdiction is likely wanting,
CMTY. LEGAL SERVICES V. U.S. HHS 25
as here, the Court has directed that we stay injunctions
against the Executive Branch.
The D.C. Circuit got the message after Department of
Education. See Widakuswara v. Lake, No. 25-5144, 2025
WL 1288817, at *3–4 (D.C. Cir. May 3, 2025) (per curiam)
(staying a district court injunction restoring grant funding
because of likely lack of jurisdiction). The First Circuit
didn’t. See Am. Pub. Health Ass’n v. Nat’l Insts. of Health,
145 F.4th 39, 52, 56 (1st Cir. 2025) (denying a stay despite
the jurisdictional questions). The Supreme Court,
unsurprisingly, stepped in and corrected the First Circuit.
NIH, 145 S. Ct. 2658.
In its statement respecting the denial of rehearing en
banc, the panel majority doubles down on Plaintiffs’
assertion that this is no contract case. Sure, Plaintiffs have
no direct contract with the government. But that’s because
they are subcontractors to the government. And, as we
discuss below, there is no subcontractor exception to the
Tucker Act. Nor can the panel majority ignore that the
Acacia contract is at the heart of Plaintiffs’ complaint—
expressly mentioned at least eleven times. See Compl. ¶¶
11, 39, 64, 65, 66, 88, 91, 95, 96, 131. The panel majority
also can’t skirt around the fact that Plaintiffs explicitly pled
that the cancellation of the Acacia contract was the direct
cause of their harm—causing them “to lay off employees
and lose huge percentages of their overall funding.” Id. ¶ 99.
See, e.g., id. ¶ 100 (one of the plaintiff’s alleging that
“funding for the services Defendants have illegally cancelled
makes up approximately 55% of [its] budget and pays for
113 of [its] approximately 200 employees.”).
Thus, the panel majority is simply wrong to say that
Plaintiffs’ alleged standing is based solely on organizational
26 CMTY. LEGAL SERVICES V. U.S. HHS
standing—that their harms arose “from the frustration of
their mission and diversion of resources.” As even the
district court conceded, “Plaintiffs have suffered near-
immediate financial impacts [from the Cancellation Order],
and they have thus made a sufficient showing of concrete
and imminent economic injury.” Cmty. Legal Servs. in E.
Palo Alto v. U.S. Dep’t of Health & Hum. Servs., 780 F.
Supp. 3d 897, 913 n.2 (N.D. Cal. 2025). Finally, the panel
majority can’t deny that the only way to remedy Plaintiffs’
injuries is to pay them for their services—in other words, to
reinstate the Acacia contract. Regardless of how the panel
majority dresses it, the source of Plaintiffs’ rights is the
Acacia contract and any remedy is a contract remedy. So
none of the facts of this case distinguish it from the binding
precedent of Department of Education and NIH.
We should have reheard this case en banc. No matter
how creatively pled, Plaintiffs’ claims are fundamentally
contract claims, and the district court lacked jurisdiction to
consider them. By refusing to rehear this case, our court lets
stand an injunction that violates the limits Congress has set
on our jurisdiction and interferes with the Executive’s
prerogative to set and review policies. We respectfully
dissent.
I.
Under the Trafficking Victims Protection
Reauthorization Act (“TVPRA”), HHS “shall ensure, to the
greatest extent practicable and consistent with [8 U.S.C.
§ 1362], that all unaccompanied alien children” in the
custody of HHS or the Department of Homeland Security
(“DHS”) “have counsel to represent them in legal
proceedings or matters.” 8 U.S.C. § 1232(c)(5). Within
HHS, ORR implements the TVPRA’s directives. Congress
CMTY. LEGAL SERVICES V. U.S. HHS 27
has funded ORR through lump-sum appropriations since
2012. That funding remains available through September
2027.
To further its responsibilities under the TVPRA, ORR
promulgated what is known as the Foundational Rule in
April 2024. The Foundational Rule fleshes out how ORR
will discharge its multiple responsibilities under the
TVPRA. It provides, “[t]o the extent ORR determines that
appropriations are available, and insofar as it is not
practicable for ORR to secure pro bono counsel, ORR shall
fund legal service providers to provide direct immigration
legal representation for certain unaccompanied children,
subject to ORR’s discretion and available appropriations.”
45 C.F.R. § 410.1309(a)(4).
In 2022, the Acacia Center for Justice contracted with
ORR to provide direct representation to unaccompanied
children. To fulfill its contractual obligations, Acacia hired
subcontractor organizations, including Plaintiffs. Earlier
this year, in February 2025, HHS issued a directive raising
concerns about “serious programmatic failures” in ORR’s
administration of “the Unaccompanied Alien Children
(UAC) Program.” Particularly, the directive cited the results
of a Florida grand-jury investigation, which found “sponsor
vetting failures, identity verification lapses, instances of
child trafficking, and fraud in the sponsorship process.” The
directive then required agency personnel to “briefly pause all
payments made . . . to contractors, vendors, and grantees
related to immigration and refugee settlement for internal
review for payment integrity.”
A month later, the government sent a letter to Acacia
partially terminating its contract “for the Government’s
convenience,” which eliminated ORR’s funding of counsel
28 CMTY. LEGAL SERVICES V. U.S. HHS
for unaccompanied children in removal proceedings
(“Cancellation Order”). The letter directed Acacia to
“immediately stop all work” on its contract, and Acacia
notified its direct-representation subcontractors on the same
day.
Almost immediately, the district court issued a
preliminary injunction forcing the government to continue
paying money to Acacia. The district court enjoined the
government from “withdrawing the services or funds
provided” by ORR, “particularly ORR’s provision of funds
for direct legal representation services to unaccompanied
children.” Cmty. Legal Servs., 780 F. Supp. 3d at 911. A
divided panel denied a stay of the preliminary injunction.
See Cmty. Legal Servs., 137 F.4th at 937. Judge Callahan
dissented, raising jurisdictional concerns and noting that,
even if the district court had jurisdiction, the law commits
funding decisions to “agency discretion.” Id. at 943
(Callahan, J., dissenting).
II.
We should’ve reheard this case en banc because the
government, at minimum, is likely to succeed in showing
that the district court lacked jurisdiction to order the
continued payment of the Acacia contract under the APA.
Federal courts are “courts of limited jurisdiction,” with
limitations imposed “by statute.” Royal Canin U.S.A., Inc.
v. Wullschleger, 604 U.S. 22, 26 (2025) (simplified). One
such statute is the Tucker Act, which precludes district court
jurisdiction over suits seeking to reinstate government
contract funding. 28 U.S.C. § 1491(a)(1). Instead, the
Tucker Act requires that such claims be brought in the Court
of Federal Claims. Id. And when “a federal court concludes
that it lacks subject-matter jurisdiction, the court must
CMTY. LEGAL SERVICES V. U.S. HHS 29
dismiss the complaint in its entirety.” Arbaugh v. Y&H
Corp., 546 U.S. 500, 514 (2006). That’s what the district
court should have done here.
Given that none of the other stay factors favor Plaintiffs,
see Nken v. Holder, 556 U.S. 418, 434 (2009), the panel
should have granted a stay here. When it didn’t, the full
court should have taken this case en banc.
A.
The District Court Lacked Jurisdiction over Plaintiffs’
Contract Claims
The Tucker Act grants the Court of Federal Claims
jurisdiction over claims against the government
“founded . . . upon any express or implied contract with the
United States.” 28 U.S.C. § 1491(a)(1). We have long
interpreted the Tucker Act to vest “exclusive jurisdiction”
over these claims and to bar invocation of the APA’s waiver
of sovereign immunity. See Tucson Airport Auth., 136 F.3d
at 646. So even if a breach-of-contract claim is “disguised”
as “an APA action seeking injunctive and declaratory relief,”
we’ve held that the Tucker Act “impliedly forbids” our
jurisdiction, so the suit must be brought in the Court of
Federal Claims. See United Aeronautical Corp. v. U.S. Air
Force, 80 F.4th 1017, 1025–26 (9th Cir. 2023) (simplified).
Since no federal law gives Plaintiffs the ability to enforce
any duty to fund legal representation for unaccompanied
children, their claim must be based in contract. Because
Plaintiffs’ claims don’t exist outside the Acacia contract, the
district court had no jurisdiction here.
30 CMTY. LEGAL SERVICES V. U.S. HHS
1.
The Tucker Act Precludes the APA’s Sovereign
Immunity Waiver
A suit may be brought against the United States “only if
Congress has waived sovereign immunity for the lawsuit,”
and a district court has jurisdiction over a suit “only if
Congress has provided for jurisdiction there.” Tucson
Airport Auth., 136 F.3d at 644 (simplified). One basis for
the waiver of sovereign immunity—the one Plaintiffs
invoke—is the APA. See 5 U.S.C. § 702. But the APA is
only a limited waiver of sovereign immunity. This waiver is
subject to three limitations: “(1) [the] claim must not seek
‘money damages’; (2) an adequate remedy for [the] claims
must not be available elsewhere; and (3) [the] claims must
not seek relief expressly or impliedly forbidden by another
statute.” United States v. Park Place Assocs., Ltd., 563 F.3d
907, 929 (9th Cir. 2009) (interpreting 5 U.S.C. § 702).
The question here is whether “another statute” bars the
waiver of sovereign immunity. The answer is yes—the
Tucker Act does. It’s well established that the Tucker Act
“‘impliedly forbids’ declaratory and injunctive relief” and
“precludes a § 702 waiver of sovereign immunity” on
contract claims over $10,000. Tucson Airport Auth., 136
F.3d at 646 (simplified). And this is true no matter how
plaintiffs dress up such a claim—even if they “formally
seek[] injunctive relief” under the APA, United Aeronautical
Corp., 80 F.4th at 1026, or the “complaint nowhere mentions
breach of contract,” Ingersoll-Rand Co. v. United States, 780
F.2d 74, 77 (D.C. Cir. 1985). The bottom line: “If rights and
remedies are statutorily or constitutionally based, then
district[] courts have jurisdiction; if rights and remedies are
CMTY. LEGAL SERVICES V. U.S. HHS 31
contractually based[,] then only the Court of Federal Claims
does.” United Aeronautical Corp., 80 F.4th at 1026.
To determine if a claim is really a disguised breach-of-
contract claim, we look to both “(1) the source of the rights
upon which the plaintiff bases its claims, and (2) the type of
relief sought (or appropriate).” Id. at 1026 (simplified). In
considering the “source of the rights,” we may examine
(a) whether “the plaintiff’s asserted rights and the
government’s purported authority arise from statute,”
(b) whether “the plaintiff’s rights exist prior to and apart
from rights created under the contract,” and (c) whether “the
plaintiff seeks to enforce any [contractual] duty imposed
upon the government.” Crowley Gov’t Servs. v. Gen. Servs.
Admin, 38 F.4th 1099, 1106–07 (D.C. Cir. 2022)
(simplified). The “type of relief sought” turns on whether a
claim “in essence” seeks more than $10,000 from the federal
government. Id. at 1107 (simplified).
2.
Plaintiffs’ Source of Rights and the Type of Relief
Sought Are Contractual
Plaintiffs are nonprofit organizations that have received
funding from HHS and ORR through Acacia to provide legal
representation to unaccompanied children. As Plaintiffs’
complaint asserts, the government sent “a notice terminating
the contract line items through which Defendants HHS and
ORR had provided funding for counsel for unaccompanied
children and ordering Plaintiffs to ‘immediately stop work’
on their ongoing funded representations.” For relief,
Plaintiffs seek to “[e]njoin [HHS and ORR] nationwide from
ceasing to fund counsel to represent unaccompanied
children.” No federal law or regulation entitles Plaintiffs to
payment for their work. They only received funding through
32 CMTY. LEGAL SERVICES V. U.S. HHS
a contract. Thus, the source of rights and type of relief
sought here are patently contractual.
Let’s look more closely at the Acacia contract. On
March 29, 2022, the Acacia Center for Justice entered a
contract with the government to fund its work to provide
representation to unaccompanied children. In that contract,
Acacia promised to provide “[f]ull legal representation for
children in and out of ORR custody, as well as other
nonrepresentation services such as ‘friend of court’ services
in hearings for unaccompanied children appearing in
immigration court or preparing forms without attorneys.” In
exchange, ORR promised to pay Acacia from its lump-sum
funds. Before the government terminated its funding,
Acacia met its contractual obligations through its
subcontractors, a network of 89 legal services organizations,
including Plaintiffs, in 159 offices across the country. Now,
Plaintiffs want to continue to be paid for the services they
used to provide as subcontractors under the Acacia contract.
All this points to the Acacia contract as the source of
Plaintiffs’ rights.
What’s more, Plaintiffs seek to enjoin the government
from ceasing payments for their legal services to
unaccompanied minors—meaning they seek reinstatement
of the Acacia contract. And an injunction to order specific
performance of a contract is a quintessential contract
remedy. Cf. Ingersoll-Rand, 780 F.2d at 79–80 (suggesting
that “the essence” of a claim is a “request for specific
performance of the original contract” when the “practical
result of granting plaintiff’s request for declaratory and
injunctive relief would be reinstatement of terminated
contracts”) (simplified). In response, Plaintiffs argue ORR
doesn’t necessarily need to follow the Acacia contract to
grant it relief, claiming that ORR could conceive of “non-
CMTY. LEGAL SERVICES V. U.S. HHS 33
contractual” remedies. But setting aside that this suggestion
is practically unrealistic, it would contradict the terms of the
district court’s injunction. Recall that the district court
enjoined the government from “withdrawing the services or
funds provided” by ORR, “particularly ORR’s provision of
funds for direct legal representation services to
unaccompanied children.” Cmty. Legal Servs., 780 F. Supp.
3d at 911. This order means that ORR can’t alter or
“withdraw” its preexisting relationship with Acacia—a
preexisting relationship that is clearly contractual.
Plaintiffs’ requested relief also targets the Cancellation
Order—further establishing the contractual nature of their
claim. Plaintiffs’ complaint seeks to “[s]et aside
Defendants’ actions that violate the APA,” and expressly
alleges that the “Cancellation Order” is an unlawful agency
action because it ends the Acacia contract. The Cancellation
Order that Plaintiffs expressly ask to be judicially stopped
pertains only to the partial termination of the Acacia
contract, again evincing that the type of relief sought by
Plaintiffs is grounded in contract.
Plaintiffs assert that their APA claims are premised on a
violation of the TVPRA and ORR’s Foundational Rule—not
the Acacia contract. But regardless of the government’s
obligations under either the TVPRA or the ORR—which do
not protect Plaintiffs—Plaintiffs can’t escape that their
claims “do not exist independent of the” Acacia contract and
that they “seek[] specific performance of the [Acacia]
contract.” Tucson Airport Auth., 136 F.3d at 647; see also
Ingersoll-Rand Co., 780 F.2d at 78 (holding that the
plaintiff’s claim that the government’s termination of a
contract “for convenience” violated two regulations did not
change the action’s fundamentally contractual character).
Therefore, their APA claims are necessarily “founded . . .
34 CMTY. LEGAL SERVICES V. U.S. HHS
upon [an] express or implied contract with the United
States.” 28 U.S.C. § 1491(a)(1). Indeed, under the APA, the
plaintiff must “suffer [a] legal wrong because of agency
action” or be “adversely affected or aggrieved by agency
action within the meaning of a relevant statute.” 5 U.S.C.
§ 702. And here, the alleged legal wrong or adverse effect
the district court sought to remedy was the government’s
termination of the Acacia contract. Boiled down, Plaintiffs’
only alleged injury and purported legal violation was the
cancellation of the Acacia contract. Thus, it follows that
Plaintiffs’ claims are contractually based.
NIH guides us on how to consider Plaintiffs’ claims. See
145 S. Ct. 2658. In that case, the plaintiffs alleged that the
government’s directives to terminate certain grants were
“unlawful agency-wide policies because they violate various
federal statutes and the Constitution,” and they argued that
the “[grant] terminations flowed directly from those
unlawful policies.” Nat’l Insts. of Health, 145 F.4th at 51.
Like here, the First Circuit refused to stay the injunction
because the plaintiffs’ claims didn’t require the district court
to “interpret the terms of any contracts between the parties.”
Id. at 52 n.5. Despite the claimed independent statutory
violations, the Supreme Court concluded that the APA’s
“‘limited waiver of [sovereign] immunity’ does not provide
the District Court with jurisdiction to adjudicate claims
‘based on’ the research-related grants or to order relief
designed to enforce any ‘obligation to pay money’ pursuant
to those grants.” NIH, 145 S. Ct. 2658 (quoting Dep’t of
Educ., 604 U.S. at 651). In fact, one of the NIH dissenting
opinions made the same arguments as Plaintiffs here—but
that reasoning was rejected by the Court. See NIH, 145 S.
Ct. at 2666 (Jackson, J., concurring in part and dissenting in
CMTY. LEGAL SERVICES V. U.S. HHS 35
part) (explaining that the NIH and related parties had a
statutory duty to provide funding).
And unlike NIH, in which the plaintiffs challenged both
internal agency guidance documents and the termination of
research grants, Plaintiffs here only challenge the
termination of the Acacia contract. In her concurrence,
Justice Barrett distinguished between “challenges to the
grant terminations, which belong in the Court of Federal
Claims[,]” and “vacatur of internal agency guidance,” which
are frequently litigated “on arbitrary-and-capricious grounds
in district court or directly in the D. C. Circuit.” 145 S. Ct.
at 2661. In NIH, the “internal guidance documents”
established the agency’s funding priorities, which included
defunding research related to DEI objectives, gender
identity, or COVID-19. Id. To Justice Barrett, “[b]oth logic
and law . . . support channeling challenges to the grant
terminations and guidance to different forums.” Id. Justice
Barrett explained that these two claims “are legally distinct”
and that vacating the guidance documents wouldn’t
necessarily reinstate the challenged grants. Id. Here,
Plaintiffs only challenged the Cancellation Order, which
terminated the Acacia contract. Plaintiffs don’t attack any
other internal agency guidance document, nor it is clear that
they would have constitutional and statutory standing to do
so. So under Justice Barrett’s concurrence, Plaintiffs’ claims
must be sent to the Court of Federal Claims.
Ignoring these jurisdictional limits, the panel majority
simply proclaimed that “[s]eeking to ensure compliance with
statutory and regulatory commands is a matter beyond the
scope of the Tucker Act’s exclusive jurisdiction.” Cmty.
Legal Servs., 137 F.4th at 938. But trying to dress up a
breach-of-contract claim in the guise of a broad statutory
claim is nothing new. Before, we’ve been able to ferret this
36 CMTY. LEGAL SERVICES V. U.S. HHS
out. See, e.g., Tucson Airport Auth., 136 F.3d at 647; Park
Place Assocs., 563 F.3d at 932; Ingersoll-Rand, 780 F.2d at
77. See also Spectrum Leasing Corp. v. United States, 764
F.2d 891, 894 (D.C. Cir. 1985); Widakuswara, No. 25-5144,
2025 WL 1288817, at *3–4. There is no excuse as to why
we failed to do so here.
3.
There is No Subcontractor Exception to the Tucker Act
The panel majority brushed aside these jurisdictional
concerns by creating a “subcontractor exception” to the
Tucker Act. According to the panel majority, because
subcontractors “generally have no right to sue under the
Tucker Act,” they must be allowed to bring an APA suit in
district court. Cmty. Legal Servs., 137 F.4th at 938–39. The
panel majority reasoned the “result” of following the Tucker
Act for subcontractors would be that “no court has
jurisdiction to hear plaintiffs’ claims,” which the panel says
conflicts with “common sense” and with the “strong
presumption favoring judicial review of administrative
action” under the APA. Id. at 939 (simplified). The panel
thus exempts subcontractors from the limits of the Tucker
Act. Id.
But that once again puts the cart before the horse. The
APA’s waiver of sovereign immunity is no “guarantee of a
federal forum.” Allen v. Milas, 896 F.3d 1094, 1099 (9th
Cir. 2018). It’s hornbook law that “the APA does not
provide an independent basis for subject matter jurisdiction
in the district courts.” Tucson Airport Auth., 136 F.3d at 645.
And we’ve previously rejected the panel majority’s
aggrandized view of the APA. In North Star Alaska, the
plaintiff made the same argument as Plaintiffs here: “that the
district court cannot refuse jurisdiction if there is no
CMTY. LEGAL SERVICES V. U.S. HHS 37
alternative forum available to hear [plaintiff’s] claim.” 14
F.3d at 38. But we expressly “decline[d] to overrule . . . [the]
very specific holdings that the APA does not waive
sovereign immunity for contract claims seeking equitable
relief.” Id. (simplified). It would make little sense to create
a subcontractor loophole when Congress expressly carved
out from the APA’s waiver of sovereign immunity claims
“expressly or impliedly forbid[den]” by “other statute[s].” 5
U.S.C. § 702. Indeed, whatever the presumption for judicial
review, it’s equally axiomatic that “a waiver of sovereign
immunity is to be strictly construed, in terms of its scope, in
favor of the sovereign.” Dep’t of Army v. Blue Fox, Inc., 525
U.S. 255, 261 (1999).
And we can’t just disregard the limits Congress placed
on contract suits through the Tucker Act. According to one
report from 2007, “the government had prime contracts with
approximately 169,000 different contractors.” James F.
Nagle & Jonathan A. DeMella, A Primer on Prime
Contractor-Subcontractor Disputes under Federal
Contracts, 46 PROCUREMENT LAW 12, 14 (Winter 2011). If
those prime contractors were allowed to sue the government,
that would be a “very large, but manageable” number of
suits. Id. But “[i]f subcontractors . . . were included” in the
right to sue, “millions of entities would have the ability to
sue the government directly.” Id. No wonder Congress
enacted the Tucker Act. Thus, we can’t allow subcontractors
to engage in “the creative drafting of complaints” to avoid
the statutory scheme for bringing contractual claims against
the government. See Crowley Gov’t Servs., 38 F.4th at 1107.
That the Tucker Act limits subcontractors’ ability to seek
relief is for Congress—not the courts—to address (if it
wishes). But we can’t take matters into our own hands and
make it easier for subcontractors to sue the government than
38 CMTY. LEGAL SERVICES V. U.S. HHS
contractors. That’s the result that flows from the panel
majority’s novel subcontractor exception. Now
subcontractors can bring suits arising out of government
contracts in any district court, including allowing them to
utilize the full array of equitable relief available to district
courts, while contractors are limited to the Court of Federal
Claims. See N. Star Alaska v. United States, 9 F.3d 1430,
1432 (9th Cir. 1993).
The panel majority also ignored that subcontractors are
not completely barred from bringing claims in the Court of
Federal Claims. “A subcontractor may assert a claim against
the government” if it “ha[s] the prime contractor ‘sponsor’
and certify the subcontractor’s claim.” NavCom Def. Elecs,
Inc. v. Ball Corp., 92 F.3d 877, 879–80 (9th Cir. 1996)
(citing Erickson Air Crane Co. v. United States, 731 F.2d
810, 813 (Fed. Cir. 1984); Federal Acquisition Regulation
44.203(c); Major John J. Thrasher, Subcontractor Dispute
Remedies: Asserting Subcontractor Disputes against the
Federal Government, 23 PUB. CONT. L.J. 39, 82–99 (1993));
see also United States v. Johnson Controls, Inc., 713 F.2d
1541, 1551 (Fed. Cir. 1983) (“establish[ing] the proposition
that there can be privity of contract between the government
and subcontractors where the prime contractor is a mere
government agent”); E.R. Mitchell Constr. Co. v. Danzig,
175 F.3d 1369, 1370 (Fed. Cir. 1999) (holding that a prime
contractor may sue the government on behalf of its
subcontractor, in the nature of a pass-through suit, for costs
incurred by the subcontractor). The fact that Plaintiffs failed
to bring their claims in conformity with the Tucker Act is not
an excuse to ignore our jurisdictional limits.
CMTY. LEGAL SERVICES V. U.S. HHS 39
4.
Department of Education and NIH Control This Case
Worst yet is our failure to follow the Supreme Court’s
decisions. In similar and controlling cases, the Court has
been forced to intercede again and again through interim
orders. As Justice Gorsuch observed, “[w]hatever their own
views, judges are duty-bound to respect ‘the hierarchy of the
federal court system created by the Constitution and
Congress.’” NIH, 145 S. Ct. at 2665 (Gorsuch, J.,
concurring in part and dissenting in part) (simplified). We
should be heeding that important admonition.
Department of Education controls this case. Its
instruction was clear: “the APA’s limited waiver of
immunity does not extend to orders to enforce a contractual
obligation to pay money . . . . Instead, the Tucker Act grants
the Court of Federal Claims jurisdiction over suits based on
any express or implied contract with the United States.” 604
U.S. at 651 (simplified).
The panel majority brushed Department of Education
aside, circularly reasoning in one line that “Department of
Education has no application where, as here, the claims
sound in statute, rather than contract.” Cmty. Legal Servs.,
137 F.4th at 939. That’s all the panel majority said on the
case.
But the panel majority ignored the fact that the plaintiffs
in Department of Education made the same argument that
Plaintiffs do here. There, the district court ruled that “the
‘essence’ of the action was not contractual in nature since
the source of the plaintiffs’ rights was in federal statute and
regulations and because the relief was injunctive in nature.”
California v. U.S. Dep’t of Educ., 769 F. Supp. 3d 72, 76 (D.
40 CMTY. LEGAL SERVICES V. U.S. HHS
Mass. 2025). The district court thus concluded it had
jurisdiction because “Plaintiff States have . . . sufficiently
shown that the dispute does not hinge on the terms of a
contract between the parties, but rather federal statute and
regulations put in place by Congress and the Department.”
Id. (simplified); see also California v. U.S. Dep’t of Educ.,
132 F.4th 92, 97 (1st Cir. 2025) (agreeing that the “States’
claims are, at their core, assertions that the Department acted
in violation of federal law—not its contracts”). Sound
familiar? It should, because that is precisely this case.
None of this fooled the Supreme Court. The Court saw
through the statutory dressing that the Department of
Education plaintiffs gave to their claim and recognized that
it was fundamentally contractual in nature. So the panel
majority was wrong to wave away Department of Education
by simply labeling this case as “statut[ory]” as opposed to
“contract[ual].” Cmty. Legal Servs., 137 F.4th at 939.
Department of Education and now NIH control this case.
Any claim based on an “express or implied contract with the
United States” must be brought in the Court of Federal
Claims. Dep’t of Educ., 604 U.S. at 651 (simplified).
Regardless of any purported violations of the TVPRA or the
Foundational Rule, Plaintiffs can’t hide that any obligation
to pay them was “based on” the Acacia contract.
III.
Our court should have stayed the district court’s
injunction. The government has shown that the district court
likely lacks jurisdiction over this case. The other
preliminary injunction factors—irreparable injury and the
public interest—are even more straightforwardly in the
government’s favor. The government suffers an irreparable
injury when it is forced to pay funds that it likely cannot
CMTY. LEGAL SERVICES V. U.S. HHS 41
recoup at the end of litigation. See Dep’t of Educ., 604 U.S.
at 651–52; see also NIH, 145 S. Ct. at 2658 (“[W]hile the
loss of money is not typically considered irreparable harm,
that changes if the funds cannot be recouped and are thus
irrevocably expended.”) (simplified). And Plaintiffs have
not represented that they would repay the government’s
money if the government were to ultimately prevail. See
NIH, 145 S. Ct. at 2658. Further, when a court “improperly
intrudes on a coordinate branch of the Government and
prevents the Government from enforcing its policies,” this is
a form of irreparable harm and against the public interest.
See CASA, Inc., 606 U.S. at 859 (simplified). The bottom
line is that all the Nken factors warrant a stay of the district
court’s injunction.
Plaintiffs have sought, and succeeded, in enjoining the
government from pausing its funding for direct legal
representation of unaccompanied minors. But any duty
ORR has to make those payments to Acacia is a creature of
contract. Though Plaintiffs style this suit as one premised
on the APA, “in essence” it’s contractual. This dispute
therefore belongs in the Court of Federal Claims, and we’re
powerless to hear it. This should have been a hard point to
miss, particularly given the Supreme Court’s recent
decisions. Even so, our court has decided against rehearing
this case. In doing so, we leave in place a novel and intrusive
injunction that the district court never had the authority to
enter.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT COMMUNITY LEGAL SERVICES No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT COMMUNITY LEGAL SERVICES No.
02JUSTICE COLLABORATIVE; 3:25-cv-02847- AMICA CENTER FOR AMO IMMIGRANT RIGHTS; ESTRELLA DEL PASO; FLORENCE IMMIGRANT AND ORDER REFUGEE RIGHTS PROJECT; GALVESTON-HOUSTON IMMIGRANT REPRESENTATION PROJECT; IMMIGRANT DEFENDERS LAW CENTER; NATIONA
03UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES; UNITED STATES DEPARTMENT OF THE 2 CMTY.
04HHS INTERIOR; OFFICE OF REFUGEE RESETTLEMENT, Defendants - Appellants.
Frequently Asked Questions
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT COMMUNITY LEGAL SERVICES No.
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