Case Information
*1 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA UNITED STATES CONFERENCE OF
CATHOLIC BISHOPS ,
Plaintiff,
Case No. 1:25-cv-00465 (TNM) v.
U.S. DEPARTMENT OF STATE , et al .
Defendants. MEMORANDUM ORDER
The U.S. Conference of Catholic Bishops seeks an emergency preliminary injunction preventing the Government from pausing or canceling contracts between them. These contracts require the Government to fund the Conference’s provision of resettlement services to refugees.
But this Court cannot offer the requested relief. The Conference’s motion is, at its core, seeking a purely contractual remedy. And the Tucker Act instructs that all contract disputes with the Government must be resolved by the Court of Federal Claims. More, the Conference’s desired remedy is inconsistent with equitable remedies like injunctions. The Court thus denies the Conference’s motion.
I.
For over 60 years, the Government has aided refugees. This mission started in the thick of the Cold War, when Congress appropriated funds to address “urgent refugee and migration needs” in response to individuals fleeing communist countries. Migration and Refugee Assistance Act of 1962, 22 U.S.C. § 2601(c). Later, Congress would enact the Refugee Act of 1980, which created a formal framework for the admission and resettlement of refugees. Pub. L. No. 96-212, 94 Stat. 102 (codified at 8 U.S.C. § 1522). This initiative, called the U.S. Refugee *2 Admissions Program, created “a permanent and systematic procedure for the admission to this country of refugees of special humanitarian concern to the United States, and to provide comprehensive and uniform provisions for the effective resettlement and absorption of those refugees who are admitted.” Pub. L. No. 96-212, § 101(b), 94 Stat. 102.
So refugees who have been persecuted or fear persecution abroad can seek legal admission into the United States through this program. See 8 U.S.C. §§ 1101(a)(42), 1157(c). But there is no rubber stamp for admissions. At the meta-level, the President sets a cap on the maximum number of refugees who can be admitted annually. 8 U.S.C. §§ 1157 (a)(2), 1157(c)(1), 1181(c). And on the ground, an extensive vetting process takes place. Applicants are rigorously screened in their home countries for eligibility. Before they can be admitted to the United States, they must undergo detailed interviews, medical examinations, and biometric assessments, among other checks. Am. Compl, ECF No. 29, ¶ 30.
If admitted, refugees assimilating to their new homes are then offered aid under various provisions of the Refugee Assistance Program. Though this enterprise is multifaceted, at issue here is the “[p]rogram of initial resettlement.” 8 U.S.C. § 1522(b).
This program envisions a public-private partnership between the Department of State and nonprofit organizations. [1] 8 U.S.C. §1522(b)(1)(A). State’s Bureau of Population, Refugees, and Migration (“PRM”) is “authorized” to enter into annual cooperative agreements with private resettlement agencies whose mission it is to aid refugees in their critical first weeks in the United States. 8 U.S.C. §1522(b)(1)(A)(ii); Am. Compl. ¶ 33; see also Decl. A. Zerbinopoulos, ECF *3 No. 25-1, at ¶ 11 (explaining that initial resettlement funding is provided to a refugee for 30 to 90 days). Under the cooperative agreements, PRM awards specific sums to each resettlement agency to reimburse the agency for expenses it incurs supporting the refugees during those initial weeks. Am. Compl. ¶ 33; Decl. A. Zerbinopoulos ¶ 9. This funding covers essential services such as transportation from the airport, housing, food, and clothing. Am. Compl. ¶ 33; § 1522(a)(1), (b)(1)(A), (b)(7); Decl. A. Zerbinopoulos ¶ 10. It also helps get refugees access to social, medical, educational, and employment services. Am. Compl. ¶ 33; § 1522(a)(1), (b)(1)(A), (b)(7); Decl. A. Zerbinopoulos ¶ 10. The support given in the first three months is essential, as “[l]ost opportunities for English and job training in the earliest days of resettlement often can’t be made up for later.” Decl. W. Canny, ECF No. 5-3, ¶ 22.
The Conference is one of ten resettlement agencies receiving funding under the program. Am. Compl. ¶ 33. For the Conference, helping refugees is no minor avocation. Its participation in the Refugee Admissions Program reflects the Catholic Church’s longstanding commitment to migrants and refugees. Am. Compl. ¶ 25 (citing Pope Pius XII, Apostolic Constitution, Exsul Familia Nazarethana (1952)). This commitment honors the Holy Family’s refugee status during their flight to Egypt. See Amend. Compl. ¶ 25; Matthew 2:13–16. In line with this mission, the Conference has partnered with the federal government for over 40 years to provide initial resettlement services to refugees. Am. Compl. ¶ 40. And today, the Conference runs the largest non-governmental resettlement program in the country, serving roughly 17% of resettling refugees. Am. Compl. ¶ 41.
For Fiscal Year 2025, the Conference entered into two cooperative agreements with PRM awarding the Conference about $65 million for initial resettlement. Am. Compl. ¶ 43; Cooperative Agreement 1, ECF No. 5-4; Cooperative Agreement 2, ECF No. 5-5. One of these *4 agreements covers refugees and awards around $43 million in funding, while the other covers special immigrant visa holders from Afghanistan (i.e., those who assisted the U.S. mission in Afghanistan and fear retaliation) and awards around $22 million in funding. Am. Compl. ¶¶ 32, 43; Cooperative Agreement 1 at 2, 4; Cooperative Agreement 2 at 2, 4. In all other relevant respects, the cooperation agreements are identical. Both contracts run from October 1, 2024, to September 30, 2025. Am. Compl. ¶ 43; Cooperative Agreement 1 at 2; Cooperative Agreement 2 at 2.
At least, they were meant to. But their continuing viability was cast into doubt beginning on January 20, 2025. That afternoon, President Trump signed an executive order titled “Reevaluating and Realigning United States Foreign Aid.” Exec. Order No. 14,169, 90 Fed. Reg. 8619 (Jan 20, 2025). The Foreign Aid Order directed relevant executive branch officials to institute a “90-day pause in United States foreign development assistance” pending review of the programs’ alignment with Administration priorities. § 3(a). The same day, the President suspended the entry of most new refugees into the United States. See Exec. Order No. 14,163, 90 Fed. Reg. 8459 (Jan. 20, 2025).
Shortly afterward, Secretary of State Marco Rubio issued his own directive: “[c]onsistent with” the Foreign Aid Order, “all new obligations of funding . . . for foreign assistance programs funded by or through the Department and USAID” would be paused “pending a review.” Mem. from Sec’y of State to All Diplomatic and Consular Posts, 25 State 6828 (Jan. 24, 2025), https://perma.cc/J26T-VCJR (“Rubio Memo”). Later that day, PRM purported to comply. It sent a suspension letter to the Conference that “immediately suspended” funds under the Conference’s cooperative agreements “pending a Department-wide review of foreign assistance programs.” PRM Suspension Letter, ECF No. 29-5. The suspension letter ordered the *5 Conference to “stop all work under the award(s) and not incur any new costs” after January 24. Id . The suspension letter reasoned that the pause in funding was “[c]onsistent with the President’s Executive Order” and noted that the award to the Conference “may no longer effectuate agency priorities.” Id.
But the Conference had millions of dollars in requested reimbursements pending with State. Mot. TRO, ECF No. 5-2, at 12. And more, without ongoing funding, the thousands of refugees already in its care would soon lack support. Id. The Conference filed suit and promptly sought a temporary restraining order (“TRO”) and preliminary injunction. [2] Compl., ECF No. 1; Mot. TRO. Days later, this Court held an oral hearing on those motions. Minute Entry, 2/20/2025. It denied the request for the TRO, finding that the Conference had failed to meet its burden of irreparable harm “for such an exigent, [] extraordinary remedy.” Tr. Mots. Hearing, ECF No. 21, at 48:16–17. But the Court stressed that it was not making any “conclusive ruling” as to the request for preliminary injunction. Id. at 48:18. The Court thus issued an expedited briefing schedule and set a follow-up hearing for the preliminary injunction a week later. at 52–53.
Just days before that hearing, the State Department doubled down. On February 26, State issued two formal notices of termination to the Conference, canceling the cooperative agreements between the Conference and PRM. Am. Compl. ¶ 56; Termination Letters, ECF No. 27. The justification behind the termination was simple: the agreements “no longer effectuate[d] agency priorities.” Termination Letters at 4–5. PRM thus terminated the awards “in accordance *6 with the U.S. Department of State Standard Terms and Conditions, 2 C.F.R. 200.340, and/or Award Provisions as applicable.” Id. This was based on federal regulations, incorporated into the cooperative agreements, that permit termination “to the greatest extent authorized by law” if an award “no longer effectuates the program goals or agency priorities.” See Cooperative Agreement 1 at 81; Cooperative Agreement 2 at 84; 2 C.F.R. § 200.340(a)(4). The Conference was therefore ordered to “stop all work on the program” and refrain from “incur[ring] any new costs,” effective immediately. Termination Letters at 4–5.
The Court asked for updated briefing to explain the legal salience of a termination as opposed to a suspension. See Minute Entry 2/28/2025. That briefing has since been submitted. In its amended motion for a preliminary injunction, the Conference urges that it is still likely to succeed on the merits of its claims. It argues that the termination is contrary to various federal laws, including the Refugee Act of 1980 and the Impoundment Control Act. Am. Mot. Prelim. Inj., ECF No. 30-2, at 4–8. It also insists that the sudden termination was arbitrary and capricious, in violation of the Administrative Procedure Act. at 8–9. More, the Conference stresses that it meets all the other necessary requirements to earn preliminary relief—that it will suffer irreparable injury without Court intervention, and that the public interest favors relief. Id. at 9–10. So the Conference asks that the Court “enjoin[]” Defendants “from implementing, enforcing, or otherwise giving effect to any rule, order, policy, or other agency action suspending, freezing, pausing, or otherwise preventing the obligation or disbursement of appropriated funds to provide refugee resettlement services.” Prop. Order, ECF No. 30-1, at 1.
The Government urges mainly that this Court lacks jurisdiction over this action. It insists that the Tucker Act directs all contract disputes with the federal government to the Court of Federal Claims. Suppl. Opp’n, ECF No. 35, at 1. According to the Government, the “sole basis” *7 for the Conference’s motion “is grounded in the Cooperative Agreements,” and thus district courts are divested of authority to decide it. Id. But even if this Court did have jurisdiction, says the Government, the Conference’s challenge would still be fruitless, as the termination decision was neither contrary to law nor was it arbitrary and capricious. Id. at 4–10. Finally, the Government insists that Conference is neither suffering irreparable harm nor enjoys the favor of equities and the public interest. at 11.
II.
A preliminary injunction is “an extraordinary and drastic remedy” that is “never awarded
as of right.”
Munaf v. Geren
,
Finally, the burden is on the movant to demonstrate that the Court has the authority to
issue the emergency relief it seeks.
Greater New Orleans Fair Hous. Action Ctr. v. U.S. Dep’t of
Hous. & Urb. Dev.
,
III.
The Conference is unlikely to prevail on the merits because this Court lacks the authority to grant the relief it seeks. The requested injunctive relief is incompatible with the Government’s sovereign immunity.
Start with the basics. A plaintiff requesting emergency relief against the Government “must identify an unequivocal waiver of sovereign immunity.” Franklin-Mason v. Mabus , 742 F.3d 1051, 1054 (D.C. Cir. 2014). The Conference points to § 702 of the Administrative Procedure Act (“APA”) as providing that waiver. Am. Mot. Prelim. Inj. at 1–2. But § 702’s waiver comes with a catch—it “does not apply if any other statute that grants consent to suit expressly or impliedly forbids the relief which is sought.” Perry Cap. LLC v. Mnuchin , 864 F.3d 591, 618 (D.C. Cir. 2017) (cleaned up) (quoting 5 U.S.C. § 702). [3]
The Government argues that the Tucker Act “impliedly forbids” the APA’s sovereign
immunity waiver. Suppl. Opp’n at 1–4. The Tucker Act grants the Court of Federal Claims
exclusive jurisdiction over certain suits against the Government, including those “founded . . .
upon” any “contract with the United States.”
[4]
28 U.S.C. § 1491(a)(1);
see also Transohio Sav.
Bank v. Dir., Off. of Thrift Supervision
,
But determining whether a dispute is “at its essence” contractual is not always simple.
Megapulse, Inc. v. Lewis
,
Resolving the ultimate inquiry of whether a claim is “essentially a contract action” turns
on two key considerations: “The source of the rights upon which the plaintiff bases its claims”
and “the type of relief sought.”
Albrecht v. Comm. on Emp. Benefits of Fed. Rsrv. Emp. Benefits
Sys.
,
The latter factor is dispositive here. The nature of relief the Conference seeks “sounds in contract.” at 68. It asks the Court to “enjoin[]” the Government
“from implementing, enforcing, or otherwise giving effect to any rule . . . preventing the obligation or disbursement of appropriated funds to *10 provide refugee resettlement services, including by . . . implementing, enforcing, or otherwise giving effect to the February 26, 2025, termination letter issued by the State Department to USCCB; or issuing or reissuing any other letters or taking any other actions that have a materially similar effect.”
Prop. Order at 1.
Stripped of its equitable flair, the requested relief seeks one thing: The Conference wants
the Court to order the Government to stop withholding the money due under the Cooperative
Agreements. In even plainer English: The Conference wants the Government to keep paying
up. Thus the Conference “seeks the classic contractual remedy of specific performance.”
Spectrum Leasing Corp. v. United States
,
Indeed, the Supreme Court has stressed that “an injunction to compel the payment of
money past due under a contract . . . was not typically available in equity”—meaning an
injunction is the wrong vehicle to recoup withheld funds.
Great-West Life & Annuity Ins. Co. v.
Knudson
,
The Court is guided by the D.C. Circuit’s opinions in
Spectrum
and
Ingersoll-Rand
. In
Spectrum
, the plaintiff was a party to a contract with the General Services Administration
(“GSA”).
Spectrum Leasing Corp.
,
Similarly, in
Ingersoll-Rand
, the plaintiff alleged that the Air Force’s decision to
terminate its contract for convenience reasons was arbitrary and capricious.
The Court squints in vain to see any daylight. Like those plaintiffs, the Conference asks the Court to order the Government to cancel the termination, pay money due, and reinstate the contracts. That is something this Court lacks the power to do.
Crowley
does not counsel otherwise. There, a plaintiff with a military contract
challenged the GSA’s authority to audit and unilaterally reduce future payments under the
contract.
Crowley
,
Indeed, another court in this district recently rejected a similar request from plaintiffs
seeking to revive terminated government contracts.
See AIDS Vaccine Advoc. Coal., et al. v.
Dept. of State, et al.
, No. 25-cv-00400,
The Conference resists this conclusion. But in its artful efforts to dodge the inevitable,
the Conference falls prey to precisely the sort of “creative drafting” that
Crowley
warns against.
* * *
In short, the Conference alleges that, over the last several weeks, the Government paused
and then reneged on its contracts. At issue here is not whether the Government had the right to
do so, much less whether the Government was right to do so. No, the question is far narrower:
Whether this Court has the authority to afford the “drastic” emergency relief that the Conference
seeks.
F.T.C. v. Exxon Corp.
,
In reaching this conclusion, the Court makes no finding on its jurisdiction over the
underlying Complaint. There is no motion to dismiss presently before the Court that would call
*15
for an assessment of jurisdiction
writ large
. Instead, the Court holds simply that it “cannot find
that [the Conference] [is] likely to succeed on the merits” of its motion because the court “has no
authority to remedy [the alleged violations] in the way plaintiff[] ask[s].”
Greater New Orleans
Fair Hous. Action Ctr.
,
This Court wields “only that power authorized by Constitution and statute . . . which is
not to be expanded by judicial decree.”
Kokkonen v. Guardian Life Ins. Co. of Am.
, 511 U.S.
375, 377 (1994). “[T]o allow suit against the United States under the APA in actions actually
based on contract would create such inroads into the restrictions of the Tucker Act that it would
ultimately result in the demise of the Court of Claims”—and, accordingly, an abrogation of
congressional prerogative and will.
Megapulse
,
IV.
In sum, the Conference cannot succeed on the merits of its claims because the Court lacks jurisdiction over the relief the Conference seeks in its preliminary injunction. Its motion for a preliminary injunction is thus DENIED.
SO ORDERED. Dated: March 11, 2025 TREVOR N. McFADDEN, U.S.D.J.
Notes
[1] Although the statute authorizes the Director of the Office of Refugee Resettlement at the Department of Health and
Human Services to carry out the initial resettlement program, the Director’s statutory obligations for initial
resettlement have been transferred by presidential designation to the Secretary of State under Section 1522(b)(1)(B)
and delegated to Bureau of Population, Refugees, and Migration. Mot. TRO, ECF No. 5-2, at 6 n.1; see also
HIAS,
Inc. v. Trump
,
[2] Defendants include the Department of State, Secretary Rubio, PRM, and the Assistant Secretary of PRM. Compl. at 1. The Conference also named the Department of Health and Human Services and Secretary Robert F. Kennedy (collectively, the “Government”) as defendants “out of an abundance of caution,” because 8 U.S.C. § 1522(a) obligates the Director of the Office of Refugee Resettlement at the Department of Health and Human Service to carry out certain refugee programs. Compl. at 12 n.2; Mot. TRO at 6 n.1.
[3] The APA also excludes from its waiver of sovereign immunity claims for money damages, 5 U.S.C. § 702, and claims for which an adequate remedy is available elsewhere, 5 U.S.C. § 704. Because the Court concludes that the Tucker Act impliedly precludes the APA’s waiver of sovereign immunity, it need not decide whether these other exclusions apply.
[4] The amount in controversy must also be at least $10,000 for Tucker Act jurisdiction.
Crowley Gov’t Servs., Inc. v.
Gen. Servs. Admin.
,
[5] To be sure,
Knudson
and Justice Alito’s dissent in
AIDS Vaccine Advocacy Coalition
suggest that payment for
money past due under a government contract cannot be classified as an equitable remedy for specific performance,
potentially calling some of the reasoning in
Spectrum
into doubt.
See Knudson
,
[6] The D.C. Circuit has suggested that the Claims Court can offer this type of relief.
See Spectrum
,
