Case: Community Legal Services in East Palo Alto v. United States Department of Health and Human Services

3:25-cv-02847 | U.S. District Court for the Northern District of California

Filed Date: March 26, 2025

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Case Summary

On March 21, 2025, the Trump administration officially terminated funding for legal representation for unaccompanied immigrant children. This case challenges this action. On March 26, 2025, Community Legal Services and other non-profit legal services and advocacy groups for immigrants and refugees filed this lawsuit in the U.S. District Court for the Northern District of California against the U.S. Department of Health and Human Services (HHS), HHS's Office of Refugee Resettlement (ORR), and th…

On March 21, 2025, the Trump administration officially terminated funding for legal representation for unaccompanied immigrant children. This case challenges this action.

On March 26, 2025, Community Legal Services and other non-profit legal services and advocacy groups for immigrants and refugees filed this lawsuit in the U.S. District Court for the Northern District of California against the U.S. Department of Health and Human Services (HHS), HHS's Office of Refugee Resettlement (ORR), and the Department of the Interior (DOI). Plaintiffs alleged violations of the Trafficking Victims Protection Reauthorization Act (TVPRA) and the Administrative Procedure Act (APA). Represented by Immigrants Defender Law Center, Justice Action Center and Amica Center for Immigrant Rights, plaintiffs sought declaratory judgment and a nationwide injunction to compel the government to reinstate this funding and continue providing legal counsel. The case was assigned to Judge Araceli Martinez-Olguin.

On March 27, 2025, plaintiffs filed a motion seeking a temporary restraining order and preliminary injunction, which Judge Martinez-Olguin granted the same day, effective through April 16, 2025. The TRO barred the government from terminating, suspending, or reducing funding for legal representation of unaccompanied children, and required the continued disbursement of funds to legal service providers at the levels in effect as of March 20, 2025. It also prohibited the implementation of any new policies or directives inconsistent with those funding obligations, pending resolution of a preliminary injunction motion.

The same day, the government filed a motion to dissolve the temporary restraining order on the basis that there had been a significant change in controlling law, affirming the discretion of federal agencies to make funding determinations without judicial interference, following the Supreme Court’s decision in Department of Education v. California.

On April 4, 2025, the plaintiffs filed a motion for preliminary injunction.

On April 7, 2025, the plaintiffs filed a motion to enforce the temporary restraining order (TRO), alleging that the government had not complied with the court’s order.

On April 9, 2025, the government filed a motion for recusal of the district judge, asserting that Judge Martinez-Olguin was biased in favor of the plaintiffs because of her prior role as managing attorney at Community Legal Services in East Palo Alto.

In light of the recusal motion, on April 10, 2025, the court extended the TRO through April 30, and scheduled a joint hearing on April 23, to consider both the plaintiffs’ motion for preliminary injunction and the government’s motion to dissolve the order.

On April 12, 2025, the government appealed the TRO to the Ninth Circuit (docket 25-2358). Two days later, they sought a stay pending resolution of that appeal. The Ninth Circuit denied relief on April 18, holding that the time-limited TRO was not appealable. 2025 WL 1189827. On May 5, the court denied rehearing en banc.

Back in the district court, Judge Martinez-Olguin denied recusal on April 17, 2025, stating that a judge's past employment at a plaintiff organization does not, by itself, create a presumption of bias. 2025 WL 1346877. Her reasoning was that the recusal statute requires more than a mere suggestion of prejudice. She also noted that the central issue for recusal is whether a judge was involved in the specific litigation as an advocate before taking the bench, not that they simply worked for a legal employer or practiced in a given area of law.

On April 29, 2025 the district court granted the plaintiffs’ motion for a preliminary injunction. 780 F.Supp.3d 897. It held that the plaintiffs had standing and that the Tucker Act did not require the claims to be brought in the Court of Federal Claims, since they did not sound in contract. On the merits, the court found that the plaintiffs were likely to succeed on three Administrative Procedure Act theories. First, the court found that the government likely violated the TVPRA by cutting all funding for direct legal representation without any alternative plan to ensure unaccompanied children received legal counsel as required by statute. Second, the court held that ORR failed to follow its own regulations, which required the agency to fund legal services when appropriations were available and pro bono counsel was not feasible. Ending all funding, the court concluded, was inconsistent with this obligation. Third, the court determined that the decision was likely arbitrary and capricious because the government failed to provide a reasoned explanation supported by evidence and instead relied on post hoc attorney argument. Accordingly, the court enjoined the government from withdrawing ORR services or funding in place as of March 20, 2025, including funding for direct legal representation under the TVPRA and ORR’s Foundational Rule. The injunction barred any cutoff of congressionally appropriated funds while it remains in effect.

On May 1, 2025, the government appealed the preliminary injunction to the Ninth Circuit. Then, on May 13, the government filed a motion to stay the preliminary injunction, which the court denied on May 14. 137 F.4th 932. The court found that there was no Tucker Act obstacle to the suit and that the government had not demonstrated irreparable harm from the challenged injunction. The court denied the government’s subsequent petition for rehearing en banc on May 26, over a dissent by Judges Bumatay and VanDyke, who raised concerns about judicial overreach and separation of powers.

On October 10, 2025, the U.S. Court of Appeals for the Ninth Circuit denied the government’s petition for rehearing en banc. The court reaffirmed that the plaintiffs’ Administrative Procedure Act claims were properly before the district court because they sought to enforce statutory and regulatory obligations under the Trafficking Victims Protection Reauthorization Act and the Foundational Rule, rather than to enforce any contractual rights. The panel concluded that the case fell outside the Tucker Act’s jurisdictional scope and within the purview of the APA, leaving the district court’s preliminary injunction in full effect while the government’s appeal on the merits remained pending. Cmty. Legal Servs. in E. Palo Alto v. United States Dep't of Health & Hum. Servs., No. 25-2808, 2025 WL 2884805 (9th Cir. Oct. 10, 2025).

On October 27, 2025, the parties filed a joint status report stipulating that proceedings should remain stayed pending resolution of the government’s Ninth Circuit appeal on the merits (or any petition for certiorari) and the reinstatement of Department of Justice appropriations, with dispositive-motion briefing to be revisited after appellate developments.

On November 19, 2025, defendants reported that ORR remained in full compliance with the preliminary injunction and had entered into a new contract effective November 1, 2025, ensuring uninterrupted legal services for unaccompanied children despite the expiration of its prior contract.

	Document
23 25-02358	Mandate U.S. Court of Appeals for the Ninth Circuit	May 5, 2025	May 5, 2025 Order/Opinion
5 25-02808	Emergency Motion Pursuant to Circuit Rule 27-3 for Stay Pending Appeal Relief Requested by May 12, 2025 U.S. Court of Appeals for the Ninth Circuit	May 5, 2025	May 5, 2025 Pleading / Motion / Brief
17 25-02808	Order on Motion to Stay While Appeal of Preliminary Injunction is Pending U.S. Court of Appeals for the Ninth Circuit	May 14, 2025	May 14, 2025 Order/Opinion 137 F.4th 932
140 3:25-cv-02847	Stipulation to Postpone Submission of Joint Proposed Briefing Schedule for Dispositive Motions	Sept. 3, 2025	Sept. 3, 2025 Order/Opinion
94 25-02808	Order U.S. Court of Appeals for the Ninth Circuit	Oct. 10, 2025	Oct. 10, 2025 Order/Opinion 2025 WL 2884805

ECF Number	Description	Date	Link Date / Link
82	NOTICE by United States Department of Health and Human Services, Office of Refugee Resettlement, Department of the Interior re 74 Opposition/Response to Motion, (Attachments: # 1 Signed Roberts Supp. Decl)(Ross, Jonathan) (Filed on 4/28/2025) (Entered: 04/28/2025) 1 Signed Roberts Supp. Decl View on PACER	April 28, 2025	April 28, 2025
83	Transcript of Proceedings held on April 23, 2025, before Judge Araceli Martinez-Olguin. Court Reporter, Marla F. Knox, RPR, CRR, RMR, telephone number (602) 391-6990/email marla_knox@cand.uscourts.gov. Per General Order No. 59 and Judicial Conference policy, this transcript may be viewed only at the Clerk's Office public terminal or may be purchased through the Court Reporter/Transcriber until the deadline for the Release of Transcript Restriction. After that date it may be obtained through PACER. Any Notice of Intent to Request Redaction, if required, is due no later than 5 business days from date of this filing. (Re 81 Transcript Order, ) Release of Transcript Restriction set for 7/28/2025. (Related documents(s) 81 ) (mfk, COURT STAFF) (Filed on 4/28/2025) (Entered: 04/28/2025)	April 28, 2025	April 28, 2025
84	REPLY (re 53 Second MOTION to Enforce Judgment and Proposed Order, 40 MOTION to Enforce Judgment PLAINTIFFS EMERGENCY MOTION TO ENFORCE TEMPORARY RESTRAINING ORDER ) filed byRocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project. (Attachments: # 1 Declaration)(Huerta, Alvaro) (Filed on 4/28/2025) (Entered: 04/28/2025)	April 28, 2025	April 28, 2025
85	TRANSCRIPT ORDER for proceedings held on 4/23/2025 before Judge Araceli Martinez-Olguin by Rocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project, for Court Reporter Marla Knox. (Huerta, Alvaro) (Filed on 4/28/2025) (Entered: 04/28/2025)	April 28, 2025	April 28, 2025
86	MOTION for Leave to File Supplement to Reply in Support of Motion for Preliminary Injunction (ECF 63) filed by Rocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project. (Attachments: # 1 Declaration of Laura Nally (Amica Center))(Tumlin, Karen) (Filed on 4/29/2025) (Entered: 04/29/2025)	April 29, 2025	April 29, 2025
87	Order GRANTING 37 Plaintiffs' Motion for Preliminary Injunction. Signed by Judge Araceli Martinez-Olguin on April 29, 2025. (amolc3, COURT STAFF) (Filed on 4/29/2025) (Entered: 04/29/2025)	April 29, 2025	April 29, 2025 Clearinghouse
88	NOTICE OF APPEAL to the 9th Circuit Court of Appeals filed by United States Department of Health and Human Services, Office of Refugee Resettlement, Department of the Interior. Appeal of Order on Motion for Preliminary Injunction 87 (Appeal fee FEE WAIVED.) (Ross, Jonathan) (Filed on 4/30/2025) (Entered: 04/30/2025)	April 30, 2025	April 30, 2025 RECAP
92	USCA Case No. 25-2808 Preliminary Injunction Scheduling Order as to 88 Notice of Appeal to the Ninth Circuit, filed by United States Department of Health and Human Services, Department of the Interior, Office of Refugee Resettlement, 56 Notice of Appeal to the Ninth Circuit, filed by United States Department of Health and Human Services, Department of the Interior, Office of Refugee Resettlement. (kmg, COURT STAFF) (Filed on 5/1/2025) (Entered: 05/05/2025)	May 1, 2025	May 1, 2025 RECAP
90	NOTICE of Appearance filed by Zachary Aaron Cardin on behalf of United States Department of Health and Human Services, Office of Refugee Resettlement, Department of the Interior (Cardin, Zachary) (Filed on 5/2/2025) (Entered: 05/02/2025)	May 2, 2025	May 2, 2025
91	STATUS REPORT by United States Department of Health and Human Services, Office of Refugee Resettlement, Department of the Interior. (Attachments: # 1 Declaration of Sharon Roberts)(Masetta-Alvarez, Katelyn) (Filed on 5/2/2025) (Entered: 05/02/2025) 1 Declaration of Sharon Roberts View on RECAP	May 2, 2025	May 2, 2025 RECAP
	Notice of Appearance/Substitution/Change/Withdrawal of Attorney	May 2, 2025	May 2, 2025
93	MOTION to Stay re 87 Order on Motion for Preliminary Injunction filed by United States Department of Health and Human Services, Office of Refugee Resettlement, Department of the Interior. Motion Hearing set for 6/12/2025 02:00 PM in San Francisco, Courtroom 10, 19th Floor before Judge Araceli Martinez-Olguin. Responses due by 5/19/2025. Replies due by 5/27/2025. (Attachments: # 1 Proposed Order)(Masetta-Alvarez, Katelyn) (Filed on 5/5/2025) (Entered: 05/05/2025) 1 Proposed Order View on RECAP	May 5, 2025	May 5, 2025 RECAP
94	NOTICE of Appearance filed by Karen Cassandra Tumlin on behalf of Rocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project (Tumlin, Karen) (Filed on 5/5/2025) (Entered: 05/05/2025)	May 5, 2025	May 5, 2025
	Notice of Appearance/Substitution/Change/Withdrawal of Attorney	May 5, 2025	May 5, 2025
95	ORDER. Signed by Judge Araceli Martinez-Olguin on 5/6/2025. (ads, COURT STAFF) (Filed on 5/6/2025) (Entered: 05/06/2025)	May 6, 2025	May 6, 2025 RECAP
96	Notice of Withdrawal of Motion to Enforce Without Prejudice (Huerta, Alvaro) (Filed on 5/8/2025) (Entered: 05/08/2025)	May 8, 2025	May 8, 2025
97	ORDER of USCA Case No. 25-2808 as to 92 USCA Scheduling Order. (kmg, COURT STAFF) (Filed on 5/8/2025) (Entered: 05/09/2025)	May 8, 2025	May 8, 2025 RECAP
98	STATUS REPORT by United States Department of Health and Human Services, Office of Refugee Resettlement, Department of the Interior. (Ross, Jonathan) (Filed on 5/9/2025) (Entered: 05/09/2025)	May 9, 2025	May 9, 2025 RECAP
99	USCA Motion to Stay Lower Court or Agency Proceedings, Order, or Judgment Case No. 25-2808 United States Court of Appeals for the Ninth Circuit for 97 USCA Order. (kmg, COURT STAFF) (Filed on 5/9/2025) (Entered: 05/12/2025)	May 9, 2025	May 9, 2025 RECAP
100	USCA Reply to Response Case No. 25-2808 United States Court of Appeals for the Ninth Circuit for 99 USCA Case Number. (kmg, COURT STAFF) (Filed on 5/12/2025) (Entered: 05/14/2025)	May 12, 2025	May 12, 2025 RECAP
101	ORDER Filed For Publication of Case No. 25-2808 USCA as to 88 Notice of Appeal to the Ninth Circuit, filed by United States Department of Health and Human Services, Department of the Interior, Office of Refugee Resettlement. (kmg, COURT STAFF) (Filed on 5/14/2025) (Entered: 05/19/2025)	May 14, 2025	May 14, 2025 RECAP
102	OPPOSITION/RESPONSE (re 93 MOTION to Stay re 87 Order on Motion for Preliminary Injunction ) filed byRocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project. (Attachments: # 1 Exhibit)(Huerta, Alvaro) (Filed on 5/19/2025) (Entered: 05/19/2025) 1 Exhibit View on PACER	May 19, 2025	May 19, 2025
103	ORDER-Updated Chambers Order for Publication of USCA as to 97 USCA Order. (kmg, COURT STAFF) (Filed on 5/20/2025) (Entered: 05/21/2025)	May 20, 2025	May 20, 2025 RECAP
104	STATUS REPORT by United States Department of Health and Human Services, Office of Refugee Resettlement, Department of the Interior. (Cardin, Zachary) (Filed on 5/23/2025) (Entered: 05/23/2025)	May 23, 2025	May 23, 2025 RECAP
105	REPLY in support of (re 93 MOTION to Stay re 87 Order on Motion for Preliminary Injunction ) filed by United States Department of Health and Human Services, Office of Refugee Resettlement, Department of the Interior. (Masetta-Alvarez, Katelyn) (Filed on 5/27/2025) Modified on 5/28/2025 (kmg, COURT STAFF). (Entered: 05/27/2025)	May 27, 2025	May 27, 2025
106	ORDER of USCA Case No. 25-2808. USCA Order The response shall not exceed 4200 words and shall be filed within 21 days of the date of this order. (kmg, COURT STAFF) (Filed on 5/29/2025) (Entered: 05/30/2025)	May 29, 2025	May 29, 2025
107	Order DENYING 93 motion to stay pending appeal. Signed by Judge Araceli Martinez-Olguin on May 30, 2025. (amolc3, COURT STAFF) (Filed on 5/30/2025) (Entered: 05/30/2025)	May 30, 2025	May 30, 2025 RECAP
108	ADR Certification (ADR L.R. 3-5 b) of discussion of ADR options (Ross, Jonathan) (Filed on 6/5/2025) (Entered: 06/05/2025)	June 5, 2025	June 5, 2025
109	ADR Certification (ADR L.R. 3-5 b) of discussion of ADR options (Scott, Carson) (Filed on 6/5/2025) (Entered: 06/05/2025)	June 5, 2025	June 5, 2025
110	MOTION to Dismiss Plaintiffs' Complaint filed by United States Department of Health and Human Services, Office of Refugee Resettlement, Department of the Interior. Motion to Dismiss Hearing set for 7/31/2025 02:00 PM in San Francisco, Courtroom 10, 19th Floor. Responses due by 6/20/2025. Replies due by 6/27/2025. (Attachments: # 1 Proposed Order Proposed Order)(Celone, Michael) (Filed on 6/6/2025) (Entered: 06/06/2025) 1 Proposed Order Proposed Order View on PACER	June 6, 2025	June 6, 2025 RECAP
111	NOTICE of Appearance filed by Katherine Michelle Marquart on behalf of Rocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project (Marquart, Katherine) (Filed on 6/13/2025) (Entered: 06/13/2025)	June 13, 2025	June 13, 2025
112	NOTICE of Appearance filed by Ariana Sanudo on behalf of Rocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project (Sanudo, Ariana) (Filed on 6/13/2025) (Entered: 06/13/2025)	June 13, 2025	June 13, 2025
113	NOTICE of Appearance filed by Arthur Halliday on behalf of Rocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project (Halliday, Arthur) (Filed on 6/13/2025) (Entered: 06/13/2025)	June 13, 2025	June 13, 2025
114	MOTION for leave to appear in Pro Hac Vice ( Filing fee $ 328, receipt number ACANDC-20789650.) filed by Rocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project. (Herold, Patricia) (Filed on 6/13/2025) (Entered: 06/13/2025)	June 13, 2025	June 13, 2025
115	MOTION for leave to appear in Pro Hac Vice ( Filing fee $ 328, receipt number ACANDC-20789651.) filed by Rocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project. (Sturges, Laura) (Filed on 6/13/2025) (Entered: 06/13/2025)	June 13, 2025	June 13, 2025
116	MOTION for leave to appear in Pro Hac Vice ( Filing fee $ 328, receipt number ACANDC-20789658.) filed by Rocky Mountain Immigrant Advocacy Network, Vermont Asylum Assistance Project, Community Legal Services in East Palo Alto, Social Justice Collaborative, Amica Center For Immigrant Rights, Estrella Del Paso, Florence Immigrant and Refugee Rights Project, Galveston-Houston Immigrant Representation Project, Immigrant Defenders Law Center, National Immigrant Justice Center, Northwest Immigrant Rights Project. (Miltko, Caelin) (Filed on 6/13/2025) (Entered: 06/13/2025)	June 13, 2025	June 13, 2025
	Notice of Appearance/Substitution/Change/Withdrawal of Attorney	June 13, 2025	June 13, 2025
117	Order by Judge Araceli Martinez-Olguin granting 114 Motion for Pro Hac Vice as to Patricia Herold. (ads, COURT STAFF) (Filed on 6/16/2025) (Entered: 06/16/2025)	June 16, 2025	June 16, 2025
118	Order by Judge Araceli Martinez-Olguin granting 115 Motion for Pro Hac Vice as to Laura Sturges. (ads, COURT STAFF) (Filed on 6/16/2025) (Entered: 06/16/2025)	June 16, 2025	June 16, 2025
119	Order by Judge Araceli Martinez-Olguin granting 116 Motion for Pro Hac Vice as to Caelin Andrea Moriarity Miltko. (ads, COURT STAFF) (Filed on 6/16/2025) (Entered: 06/16/2025)	June 16, 2025	June 16, 2025

Case: Community Legal Services in East Palo Alto v. United States Department of Health and Human Services

3:25-cv-02847 | U.S. District Court for the Northern District of California

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