Filed Date: March 20, 2025
Case Ongoing
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This case challenged the termination of congressionally appropriated grant funding to the Open Technology Fund (OTF), a nonprofit dedicated to promoting internet freedom. OTF filed suit in the United States District Court for the District of Columbia against the Senior Advisor to the Acting CEO of the U.S. Agency for Global Media (USAGM); the Acting CEO of USAGM; USAGM itself; and the Office of Management and Budget (OMB). The case was assigned to Judge Royce C. Lamberth. OTF sought declaratory and injunctive relief, arguing that the defendants unlawfully withheld congressionally mandated funding in violation of statutory and constitutional provisions.
OTF’s mission, as defined by Congress, is to develop and maintain technologies that counter censorship and surveillance, ensuring free and secure access to the internet for individuals worldwide. USAGM, an independent federal agency, is legally required to provide OTF with annual grant funding, which Congress specifically earmarked for internet freedom programs. In 2024, Congress allocated at least $43.5 million for such initiatives, with continued funding authorized into fiscal year 2025. On February 26, 2025, OTF submitted a standard request for a $655,508 drawdown from its grant to fund March operations. However, USAGM failed to disburse the funds, deviating from its usual seven-day processing timeline.
On March 14, 2025, President Trump issued an executive order titled Continuing the Reduction of the Federal Bureaucracy (Executive Order). This order directed multiple federal agencies, including USAGM, to scale back their operations and eliminate non-statutory programs. The next day, the Senior Advisor to the Acting CEO of the U.S. Agency for Global Media (USAGM) issued a letter terminating all of USAGM’s grant agreements with OTF, citing shifting agency priorities. OTF contended that this action ignored explicit congressional mandates and amounted to an unconstitutional impoundment of funds.
OTF filed a complaint on March 20, 2025, arguing the defendants violated the Administrative Procedure Act (APA) because they acted arbitrarily, capriciously, and contrary to statutory and constitutional law. The lawsuit also alleged violations of the Separation of Powers, Appropriations Clause, Spending Clause, Presentment, and Take Care Clause of the U.S. Constitution, asserting that the executive branch could not override Congress’s explicit funding decisions. Additionally, OTF sought a writ of mandamus to compel USAGM to release the withheld funds and a declaration that the grant termination was unlawful. The plaintiff also sought a permanent injunction barring the defendants from impounding the OTF’s congressionally appropriated funds.
Given the immediate threat to its operations, OTF also requested an emergency temporary restraining order and a preliminary injunction on the same day they filed their complaint. They argued a TRO would prevent irreparable harm, including the shutdown of key programs, contract terminations, and the loss of funding for internet freedom technologies relied upon by millions worldwide. Defendants filed their opposition to the TRO order on March 24, 2025.
On March 27, 2025, defendants filed a notice to the court that they withdrew the grant termination. In lifht of their withdrawal, the Court deferred to decide on the TRO request conditioned upon the requirement that defendants file daily status reports, starting April 1, 2025, for seven days or until the $655,508 owed to plaintiffs was dispersed in their account.
Summary Authors
Jillian Snyman (3/26/2025)
Radio Free Asia v. United States of America, District of District of Columbia (2025)
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/69765042/parties/open-technology-fund-v-lake/
Lamberth, Royce C. (District of Columbia)
Amberson, Sophia Elizabeth (District of Columbia)
Daugherty, Patrick O. (District of Columbia)
Quihuis, Liberty (District of Columbia)
Heiman, Julia Alexandra (District of Columbia)
See docket on RECAP: https://www.courtlistener.com/docket/69765042/open-technology-fund-v-lake/
Last updated April 22, 2025, 12:11 p.m.
State / Territory: District of Columbia
Case Type(s):
Presidential/Gubernatorial Authority
Special Collection(s):
Trump Administration 2.0: Challenges to the Government
Trump Administration 2.0: Challenges to the Government (Spending Freezes/Cuts)
Key Dates
Filing Date: March 20, 2025
Case Ongoing: Yes
Plaintiffs
Plaintiff Description:
Open Technology Fund is a private, independent, not-for-profit 501(c)(3) organization dedicated to advancing global internet freedom. They support the research, development, implementation, and maintenance of tools and technologies focused on counteracting repressive censorship and surveillance, enabling citizens worldwide to reliably access news and information, and to exercise their fundamental human rights online.
Plaintiff Type(s):
Non-profit NON-religious organization
Public Interest Lawyer: No
Filed Pro Se: No
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
U.S. Agency for Global Media, Federal
Office of Management and Budget, Federal
Defendant Type(s):
Case Details
Causes of Action:
Ex Parte Young (Federal) or Bivens
Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.
Declaratory Judgment Act, 28 U.S.C. § 2201
Ex parte Young (federal or state officials)
Constitutional Clause(s):
Spending/Appropriations Clauses
Available Documents:
Outcome
Prevailing Party: None Yet / None
Nature of Relief:
Source of Relief:
Issues
General/Misc.:
Presidential/Gubernatorial Authority: