498 F.Supp.3d 999
N.D. Ill.2020Background
- Plaintiffs (Cook County and ICIRR) challenged DHS’s 2019 "Public Charge" Final Rule under the APA and ICIRR also asserted an Equal Protection claim alleging racial motivation.
- The district court preliminarily enjoined enforcement of the Rule in Illinois; DHS appealed and the Supreme Court temporarily stayed that injunction.
- The Seventh Circuit affirmed the preliminary injunction, holding the Rule likely (1) misinterprets "public charge" by covering de minimis, short-term benefits and (2) was likely arbitrary and capricious for failing to consider reliance interests and collateral consequences.
- DHS acknowledged the Seventh Circuit’s legal conclusions justify summary judgment for Plaintiffs on the APA claims; Plaintiffs moved for summary judgment seeking vacatur of the Rule.
- The district court granted summary judgment on the APA claims, vacated the Final Rule nationwide, entered a Rule 54(b) final judgment on the APA claims, denied DHS’s request to limit vacatur to Illinois, declined to stay the vacatur pending appeal, and allowed ICIRR’s Equal Protection claim to proceed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether DHS’s Final Rule lawfully interprets "public charge" under the INA | Rule unlawfully broadens "public charge" to include de minimis, short-term benefits | Rule is a permissible interpretation of an ambiguous term | Court (following 7th Cir.): Rule exceeds statutory bounds; invalid under the APA |
| Whether the Rule was arbitrary and capricious (procedural defects) | DHS failed to consider reliance interests, collateral consequences, relevance of five‑year waiting period, and used unsupported self‑sufficiency criteria | DHS defended its rulemaking process and justifications | Held: Rule likely arbitrary and capricious for multiple unexplained, serious flaws |
| Proper remedy scope: nationwide vacatur vs. limited (Illinois-only) relief | Vacatur of the Rule in full (nationwide) is required by APA §706 when a rule is unlawful | Vacatur should be limited to Plaintiffs/Illinois | Held: Vacatur must set aside the unlawful agency rule (nationwide), not be geographically limited |
| Whether entry of a Rule 54(b) final judgment is appropriate to allow Equal Protection claim to continue | Enter Rule 54(b) judgment on APA claims and permit ICIRR’s Equal Protection claim to proceed | DHS urged staying Equal Protection litigation and limiting relief | Held: Rule 54(b) judgment entered; Equal Protection claim may proceed; no just reason to delay appeal |
| Whether to stay vacatur pending appeal | Opposed; vacatur should take effect immediately | Sought a stay pending appeal (citing harms and prior Supreme Court stay of preliminary injunction) | Held: Stay denied; Seventh Circuit’s preliminary-injunction analysis supports denial of a stay pending appeal |
Key Cases Cited
- Cook County v. Wolf, 962 F.3d 208 (7th Cir. 2020) (Seventh Circuit affirmed preliminary injunction, finding the Rule likely unlawful under the APA)
- Bowen v. Georgetown Univ. Hosp., 488 U.S. 204 (1988) (court vacated agency rule nationwide rather than limiting relief to the immediate plaintiffs)
- Lexecon Inc. v. Milberg Weiss Bershad Hynes & Lerach, 523 U.S. 26 (1998) (textual analysis of mandatory statutory language)
- DHS v. Regents of the Univ. of Cal., 140 S. Ct. 1891 (2020) (Supreme Court vacated agency action for APA procedural failings)
- Monsanto Co. v. Geertson Seed Farms, 561 U.S. 139 (2010) (nationwide injunction is extraordinary; vacatur is ordinary remedy under APA)
- Curtiss‑Wright Corp. v. Gen. Elec. Co., 446 U.S. 1 (1980) (Rule 54(b) and the prevention of piecemeal appeals)
- Peerless Network, Inc. v. MCI Commc’ns Servs., Inc., 917 F.3d 538 (7th Cir. 2019) (standards for Rule 54(b) finality and overlap analysis)
- Allentown Mack Sales & Serv., Inc. v. NLRB, 522 U.S. 359 (1998) (courts set aside agency regulations unsupported by agency rationale)