
The Department of Justice asked a Ninth Circuit panel to set aside a lower court order that blocks the government from cutting legal funding for unaccompanied undocumented children. The government argues that the dispute stems from a contract issue and should be handled by the Court of Federal Claims rather than a district court.
During arguments, government attorney Thomas Vaseliou told the panel that funding decisions for these programs fall under government discretion. He stated that the government still provides pro bono services and works to prevent exploitation, meaning the program was not completely shut down. Attorneys for the plaintiffs countered that the Trafficking Victims Protection Reauthorization Act of 2008 requires the government to ensure unaccompanied children receive legal counsel to the greatest extent practicable.
Government lawyers maintained that Congress appropriated the money as a lump sum across multiple programs under the 2008 act. Because of this lump-sum structure, the government claims it has the authority to make budget decisions and direct funds elsewhere. They also argued that the lower court lacked jurisdiction over what they view as a breach-of-contract dispute.
Plaintiffs’ attorney Laura Sturges argued that reinstating the specific contract is not necessary for an adequate remedy. Instead, she said the government must simply fulfill its statutory obligation to provide legal services under the law. She argued that whether the government abused its discretion in ending the funds is a statutory interpretation question for a court to decide.
Source: Courthouse News Service
In March 2025, several legal service organizations stated that federal agencies abruptly terminated contracts that allowed them to provide services to thousands of unaccompanied children nationwide. Groups involved include Community Legal Services in East Palo Alto, Immigrant Defenders Law Center, and the Amica Center for Immigrant Rights. The organizations reported that approximately 26,000 children were at risk of losing legal representation.
Last year, U.S. District Judge Araceli Martinez-Olguin granted a temporary restraining order and a preliminary injunction to restore the nationwide funding through the Office of Refugee Resettlement. In August, the judge enforced her prior injunction by ordering the government to release funds withheld since December.
For thousands of unaccompanied minors who arrive in the United States without parents or legal guardians, the ongoing battle over legal funding directly affects their access to representation in immigration proceedings. Many of these children cannot speak English and lack the resources to hire private attorneys. If the appeals court vacates the injunction, the groups involved and the children they serve face continued uncertainty regarding federal funding and direct legal support.
Organizations and individuals monitoring the situation should watch for a decision from the appellate panel. Those seeking clarity on how these funding shifts impact active cases may benefit from consulting an immigration attorney or reaching out to legal aid organizations for guidance.
If the government succeeds in vacating the injunction, thousands of unaccompanied children could face immigration proceedings without legal representation.
The outcome of this appeal may clarify whether funding disputes of this nature belong in federal district court or the Court of Federal Claims.
The case highlights the legal limits of executive discretion when distributing lump-sum congressional appropriations for mandatory statutory programs.
Affected organizations and families should closely monitor appellate decisions and consult qualified immigration counsel for guidance.
| Party | Primary Argument |
|---|---|
| Department of Justice | Case belongs in Court of Federal Claims; funding choices are discretionary. |
| Plaintiffs' Counsel | TVPRA requires legal counsel for minors; dispute is statutory, not contractual. |
Source: Courthouse News Service
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This article is general information based on Courthouse News Service and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 23, 2026.
Source: Courthouse News Service
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