124 F.4th 529
8th Cir.2024Background
- CMS issued a final rule in May 2024 allowing DACA recipients to enroll in ACA health insurance exchanges.
- Nineteen states sued to block the rule, arguing it violates the Administrative Procedure Act.
- The district court in North Dakota granted a preliminary injunction preventing enforcement of the rule in those states.
- The federal government appealed and requested a stay of the injunction pending appeal, claiming administrative disruption.
- The Eighth Circuit first granted a temporary administrative stay but then, after briefing, denied the stay pending appeal, emphasizing the agency had not shown irreparable harm from the injunction.
- A dissent argued that North Dakota lacked standing and venue was not proper, urging dismissal or transfer.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Stay Pending Appeal | Needed to prevent enforcement disruption | Irreparable harm to agency and enrolled third parties | Stay denied; no irreparable harm to agency |
| Likelihood of Success on Merits | Rule unlawfully extends ACA to DACA recipients | Rule based on proper agency authority | Assumed for argument; not dispositive |
| Irreparable Harm | States face burdens if rule takes effect | Agency/third parties face harm if injunction stays | Agency showed no irreparable harm to itself |
| Standing and Venue (raised in dissent) | North Dakota has injury from downstream costs | No direct injury; venue improper without standing | Majority did not decide; dissent: no standing |
Key Cases Cited
- Nken v. Holder, 556 U.S. 418 (2009) (sets out four-factor test for stays pending appeal)
- Brady v. Nat’l Football League, 640 F.3d 785 (8th Cir. 2011) (preliminary injunction and stay standards overlap)
- Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7 (2008) (irreparable harm standard for injunctive relief)
- United States v. Texas, 599 U.S. 670 (2023) (Article III standing requirements)
- Clapper v. Amnesty Int’l USA, 568 U.S. 398 (2013) (speculative injuries and standing)
