Case: HIAS v. United States
1:26-cv-00429 | U.S. Court of Federal Claims
Filed Date: March 17, 2026
Case Ongoing
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Case Summary
This lawsuit seeks monetary damages for the mass cancellation of USAID and State Department contracts. Eight international development organizations filed a lawsuit on March 17, 2026 against the United States of America in the U.S. Court of Federal Claims, alleging that the federal government unlawfully suspended and terminated thousands of foreign assistance grants and cooperative agreements in early 2025. The plaintiffs—HIAS (a global refugee protection nonprofit), the American Bar Association (ABA), Advancing Democratic Elections and Political Transitions LLC (ADEPT), DAI Global, LLC (DAI), Democracy International, Inc. (DI), Management Sciences for Health, Inc. (MSH), Mercy Corps, and Save the Children Federation, Inc.—claimed that the government's actions violated contractual obligations and regulatory requirements and breached the implied covenant of good faith and fair dealing. The organizations brought the lawsuit under the Tucker Act, 28 U.S.C. § 1491(a), which grants the court authority over contract-based claims against the U.S. government.While the complaint did not formally seek class-action status, it referenced thousands of similarly situated awardees who were affected by the same policies. The organizations sought a range of remedies, including monetary damages for unpaid reimbursements, lost funding, reliance costs (such as employee hiring costs and lease obligations), and reputational harm. They also requested interest, costs, attorneys’ fees, and any further relief the court deemed just and proper.
The organizations alleged that the mass suspensions and terminations began in January 2025, when USAID and the State Department issued blanket stop-work orders and suspension notices under Executive Order 14,169, titled "Reevaluating and Realigning United States Foreign Aid". The agencies terminated thousands of USAID and State Department awards in a single day, February 26, 2025. Rather than conducting individualized reviews, officials relied on spreadsheets with minimal data and used boilerplate form letters that were sometimes addressed to the wrong entities or contained generic salutations. The plaintiffs argued that these actions were arbitrary and capricious because the agencies failed to assess whether the projects served the national interest or complied with regulatory requirements.
A central allegation in the complaint was that the terminations were driven by political interference rather than legitimate policy concerns. The organizations claimed that the Department of Government Efficiency (DOGE), led by Elon Musk, directed the mass cancellations, noting that Musk had publicly advocated for dismantling USAID and made false claims about USAID's programs. A federal court enjoined the blanket suspensions as unlawful on February 13, 2025, but the agencies circumvented that order by issuing new termination notices under different justifications, such as "programmatic efficiency". The agencies continued terminating awards en masse, claiming that the Secretary of State had personally reviewed each case.
As a result of the cancellations, some organizations were forced to lay off thousands of employees, abandon critical programs, and default on subcontracts. The plaintiffs argued that the government's actions not only breached contractual obligations but also violated the implied covenant of good faith and fair dealing by frustrating their reasonable expectations of performance.
On March 18, 2026, the court assigned the case to Chief Judge Matthew H. Solomson.
On June 25, 2026, the United States filed a motion to dismiss the case for failure to state a claim and lack of jurisdiction.
The case is ongoing.
Summary Authors
Jonah Miller (7/20/2026)
Claire Pollard (3/29/2026)
People
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/72506692/parties/hias-v-united-states/
Jacobson, Daniel F. (Alabama)
Rosen-Shaud, Brian C. (Alabama)
Snow, Kyla (Alabama)
Wirth, Stephen K. (Alabama)
Roche, Matthew Paul (Alabama)
Documents in the Clearinghouse
Docket
See docket on RECAP: https://www.courtlistener.com/docket/72506692/hias-v-united-states/
Last updated Aug. 30, 2026, 3:22 a.m.
Docket for: HIAS v. United States
Case Details
State / Territory:
Case Type(s):
Presidential/Gubernatorial Authority
Special Collection(s):
Trump Administration 2.0: Challenges to the Government
Key Dates
Filing Date: March 17, 2026
Case Ongoing: Yes
Plaintiffs
Plaintiff Description:
Eight organizations that had foreign assistance grants and cooperative agreements with USAID terminated in 2025
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
Federal
USAID; U.S. Department of State
Case Details
Causes of Action:
Other Dockets:
U.S. Court of Federal Claims 1:26-cv-00429
Available Documents:
Outcome
Prevailing Party: None Yet / None
Relief Sought:
Relief Granted:
Source of Relief:
Issues
Presidential/Gubernatorial Authority:
DOGE (Department of Government Efficiency)
Case Summary of HIAS v. United States, Civil Rights Litig. Clearinghouse, https://clearinghouse.net/case/47985/ (last updated 3/29/2026).