Woonasquatucket River Watershed Council v. USDA
CourtCourt of Appeals for the First Circuit
Date FiledAugust 7, 2026
Docket25-1428
StatusPublished
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Full Opinion
United States Court of Appeals
For the First Circuit
No. 25-1428
WOONASQUATUCKET RIVER WATERSHED COUNCIL; EASTERN RHODE ISLAND
CONSERVATION DISTRICT; GREEN INFRASTRUCTURE CENTER; NATIONAL
COUNCIL OF NONPROFITS; CHILDHOOD LEAD ACTION PROJECT; CODMAN
SQUARE NEIGHBORHOOD DEVELOPMENT CORPORATION,
Plaintiffs, Appellees,
v.
U.S. DEPARTMENT OF AGRICULTURE; BROOKE ROLLINS, in the official
capacity as Secretary of Agriculture; U.S. DEPARTMENT OF ENERGY;
CHRIS WRIGHT, in the official capacity as Secretary of Energy;
U.S. DEPARTMENT OF THE INTERIOR; DOUG BURGUM, in the official
capacity as Secretary of the Interior; U.S. ENVIRONMENTAL
PROTECTION AGENCY; LEE ZELDIN, in the official capacity as
Administrator of the Environmental Protection Agency; U.S.
OFFICE OF MANAGEMENT AND BUDGET; RUSSELL VOUGHT, in the official
capacity as Director of the Office of Management and Budget;
KEVIN HASSETT, in the official capacity as Director of the
National Economic Council; U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT; SCOTT TURNER, in the official capacity as Secretary
of Housing and Urban Development,
Defendants, Appellants.
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF RHODE ISLAND
[Hon. Mary S. McElroy, U.S. District Judge]
Before
Barron, Chief Judge,
Lipez and Rikelman, Circuit Judges.
Sean R. Janda, with whom Brett A. Shumate, Assistant Attorney
General, Sara Miron Bloom, First Assistant U.S. Attorney, Eric D.
McArthur, Deputy Assistant Attorney General, Daniel Tenny, and
Brian J. Springer were on brief, for appellants.
Kevin E. Friedl, with whom Jessica Anne Morton, Robin F.
Thurston, and Democracy Forward Foundation were on brief, for
appellees.
Vincent M. Nolette, Amy E. Turner, and Sabin Center for
Climate Change Law, Columbia Law School on brief for the U.S.
Conference of Mayors as amicus curiae supporting appellees.
Andrea Moon Park and Massachusetts Law Reform Institute on
brief for Jane Addams Senior Caucus, et al. as amici curiae
supporting appellees.
August 7, 2026
BARRON, Chief Judge. In this appeal, several federal
agencies and agency heads challenge a district court order
preliminarily blocking their actions to categorically freeze
billions of dollars in federal financial assistance appropriated
under the Infrastructure Investment and Jobs Act and the Inflation
Reduction Act of 2022. We affirm in part and vacate in part.
I.
A.
In 2021, Congress enacted the Infrastructure Investment
and Jobs Act ("IIJA"). Pub. L. No. 117-58, 135 Stat. 429 (2021).
The IIJA authorized appropriations for transportation and
infrastructure projects, including federal highways, highway
safety programs, and transit programs. In the following year,
Congress enacted the Inflation Reduction Act of 2022 ("IRA"). Pub.
L. No. 117-169, 136 Stat. 1818 (2022). The IRA provided funding
to increase energy security and reduce greenhouse gas emissions.
Various federal agencies administer grant programs pursuant to the
IRA and the IIJA.
On the first day of his second term in office, President
Trump issued Executive Order No. 14154, titled "Unleashing
American Energy." 90 Fed. Reg. 8353 (Jan. 20, 2025). We will
refer to this executive order as the "Unleashing Executive Order."
Section 2 of the Unleashing Executive Order announced
nine "polic[ies] of the United States" related to energy
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production, use, and regulation.1 Id. § 2. Section 7, titled
"Terminating the Green New Deal," ordered:
All agencies shall immediately pause the
disbursement of funds appropriated through the
[IRA] or the [IIJA] . . . and shall review
their processes, policies, and programs for
issuing grants, loans, contracts, or any other
financial disbursements of such appropriated
funds for consistency with the law and the
polic[ies] outlined in . . . this order.
Id. § 7(a).
The Unleashing Executive Order also directed "all agency
heads" to "submit a report to the Director of the [National
Economic Council]" ("NEC") and "Director of [the Office of
Management and Budget]" ("OMB") detailing the findings of their
review. Id. It further provided that "[n]o funds" appropriated
through the IRA or the IIJA were to be disbursed "until the
1 Those policies are: (1) "to encourage energy exploration
and production on Federal lands and waters"; (2) "to establish our
position as the leading producer and processor of non-fuel
minerals"; (3) "to protect the United States's economic and
national security and military preparedness by ensuring that an
abundant supply of reliable energy is readily accessible"; (4) "to
ensure that all regulatory requirements related to energy are
grounded in clearly applicable law"; (5) "to eliminate the
'electric vehicle . . . mandate' and promote true consumer
choice"; (6) "to safeguard the American people's freedom to choose
from a variety of goods and appliances"; (7) "to ensure that the
global effects of a rule, regulation, or action shall, whenever
evaluated, be reported separately from its domestic costs and
benefits"; (8) "to guarantee that all executive departments and
agencies . . . provide opportunity for public comment and
rigorous, peer-reviewed scientific analysis"; and (9) "to ensure
that no Federal funding be employed in a manner contrary to the
principles outlined in this section, unless required by law."
Unleashing Executive Order § 2.
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Director of OMB and Assistant to the President for Economic Policy
have determined that such disbursements are consistent with any
review recommendations they have chosen to adopt." Id.
The next day, Matthew J. Vaeth, Acting Director of OMB,
and Kevin Hassett, Assistant to the President for Economic Policy
and Director of NEC, issued a memorandum regarding the Unleashing
Executive Order to the heads of federal departments and agencies.2
We will refer to this memorandum as the "Unleashing Memorandum."
The Unleashing Memorandum stated that "[t]he directive"
in the Unleashing Executive Order "requires agencies to
immediately pause disbursement of funds appropriated under the
[IRA] or the [IIJA]." "This pause," the Unleashing Memorandum
explained, "only applies to funds supporting programs, projects,
or activities that may be implicated by the polic[ies] established
in [s]ection 2" of the Unleashing Executive Order.
The Unleashing Memorandum also informed recipients that,
"[f]or the purposes of implementing section 7 of the [Unleashing
Executive Order], funds supporting the 'Green New Deal' refer to
any appropriations for objectives that contravene the policies
established in section 2" of that order. "Agency heads may
2Memorandum from Matthew J. Veath, Acting Dir., Off. of Mgmt.
& Budget, & Kevin Hassett, Assistant to the President for Econ.
Pol'y & Dir., Nat'l Econ. Council, to Heads of Dep'ts & Agencies
(Jan. 21, 2025) [https://perma.cc/Y7KB-784F].
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disburse funds as they deem necessary after consulting with [OMB],"
the Unleashing Memorandum concluded.
B.
In March 2025, six nonprofit organizations filed a suit
in the U.S. District Court for the District of Rhode Island that
challenged various alleged final agency actions pertaining to the
Unleashing Memorandum, including the issuance of the memorandum
itself. The organizations are Woonasquatucket River Watershed
Council; Eastern Rhode Island Conservation District; Green
Infrastructure Center; Childhood Lead Action Project; Codman
Square Neighborhood Development Corporation; and National Council
of Nonprofits, a membership organization that filed suit on its
members' behalf. We will refer to the plaintiffs, collectively,
as the "Nonprofits."
The Nonprofits' operative complaint3 alleged that the
individual nonprofit plaintiffs as well as other organizations
that were members of the National Council of Nonprofits had "been
awarded grants and other financial assistance through the IRA and
IIJA" either as direct recipients or subgrantees of direct
recipients. The complaint went on to allege that, following the
issuance of the Unleashing Memorandum, there had been a "freeze on
funding appropriated by the IRA and IIJA," which resulted in the
3 The operative complaint is the Nonprofits' amended
complaint.
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individual nonprofit plaintiffs and member organizations of the
National Council of Nonprofits being denied financial assistance
pursuant to their grant awards and subawards.
The complaint named the following defendants: OMB, the
Director of OMB, and the Director of NEC (collectively, the "OMB
Defendants"), as well as five other agencies and their respective
agency heads (collectively, the "Agency Defendants"). Those other
agencies are the Department of Energy ("DOE"), the Environmental
Protection Agency ("EPA"), the Department of Housing and Urban
Development ("HUD"), the Department of the Interior ("DOI"), and
the Department of Agriculture ("USDA"). We will refer to the
defendants collectively as the "Government."
The complaint alleged that the OMB Defendants' directive
in the Unleashing Memorandum to withhold financial assistance
appropriated under the IRA and the IIJA, as well as the Agency
Defendants' "blanket freeze[s]" of that assistance "en masse and
on a non-individualized basis," violated the Administrative
Procedure Act ("APA"). The complaint alleged that the directive
in the Unleashing Memorandum, which was issued by the Director of
OMB and the Director of NEC, constitutes final agency action. It
also alleged that each of the agency-level decisions to
categorically freeze the funds in question constitutes a final
agency action. It further alleged that the challenged final agency
actions are arbitrary and capricious, in excess of statutory
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authority, and contrary to law. See 5 U.S.C. § 706(2)(A), (C).
The Nonprofits sought declaratory and injunctive relief, including
"a stay under 5 U.S.C. § 705."
The Nonprofits thereafter filed a motion for a
preliminary injunction. To secure such relief, a party must show
"(1) a substantial likelihood of success on the merits, (2) a
significant risk of irreparable harm if the injunction is withheld,
(3) a favorable balance of hardships, and (4) a fit (or lack of
friction) between the injunction and the public interest."
NuVasive, Inc. v. Day, 954 F.3d 439, 443 (1st Cir. 2020) (quoting
Nieves-Márquez v. Puerto Rico, 353 F.3d 108, 120 (1st Cir. 2003)).
To make the required showing, the Nonprofits submitted
declarations that attested that the individual nonprofits and
member organizations of the National Council of Nonprofits had not
received expected disbursements of IRA or IIJA financial
assistance or were unable to access the online payment portal for
their grants. The Nonprofits then contended that the challenged
directive by the OMB Defendants and the challenged decisions by
the Agency Defendants caused them irreparable harm. As support,
they pointed to the declarations attesting that those agency
actions led to the cutoff of funds that would force -- and in some
cases, already had forced -- the individual nonprofits and
National Council of Nonprofits members to reduce hiring, "furlough
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or lay off staff, shutter[] planned projects[,] and curtail[]"
their work.
The District Court granted the motion over the
Government's opposition. It also issued a memorandum opinion
explaining its reasoning.
The District Court first addressed a number of threshold
issues. It concluded that the Nonprofits adequately demonstrated
subject matter jurisdiction under Article III of the U.S.
Constitution. See U.S. Const. art. III, § 2, cl. 1. It also
rejected the Government's argument that the Nonprofits' APA claims
were barred by "[t]he pendency of a prior pending action in [a]
federal court" that assertedly involved the same claims. Sutcliffe
Storage & Warehouse Co. v. United States, 162 F.2d 849, 851 (1st
Cir. 1947) (quoting 1 Moore's Federal Practice 237 (1st ed. 1938)).
That case had been filed in the U.S. District Court for the
District of Columbia. See Nat'l Council of Nonprofits v. Off. of
Mgmt. & Budget, 775 F. Supp. 3d 100 (D.D.C.), appeal filed,
No. 25-5148 (D.C. Cir. 2025).
The District Court then addressed the Government's
arguments based on the APA itself. It rejected the Government's
argument that the Nonprofits had failed to identify any discrete
agency actions by the defendants and so were bringing a
"programmatic attack," which the APA does not permit. See Norton
v. S. Utah Wilderness All., 542 U.S. 55, 64 (2004). The District
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Court held instead that the Nonprofits had identified seven such
actions: "OMB and the NEC Director's decisions to issue the
[Unleashing Memorandum] mandating a pause (one action from each)
and [the Agency Defendants'] decisions to follow that guidance by
summarily freezing IIJA and IRA funds (one action from each of
the[] five agencies)."
In addition, the District Court rejected the
Government's argument that the Nonprofits' APA claims were
essentially contract claims and therefore had to be brought under
the Tucker Act in the U.S. Court of Federal Claims. See 28 U.S.C.
§ 1491(a). In rejecting this challenge to its statutory subject
matter jurisdiction, the District Court explained both that the
Nonprofits' APA claims did not depend on any contractual terms and
that they sought a remedy that, though it may result in the
disbursement of funds, was for prospective, equitable relief and
not money damages.
The District Court also concluded that the seven
challenged agency actions, in requiring the freezing of
already-awarded funds, likely were not "committed to agency
discretion by law." 5 U.S.C. § 701(a)(2). And, too, the District
Court concluded that they likely were final agency actions for
purposes of the APA. See id. § 704; Corner Post Inc. v. Bd. of
Governors of Fed. Rsrv. Sys., 603 U.S. 799, 808 (2024) (explaining
that a final agency action under the APA is one that "marks the
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consummation of the agency's decisionmaking process" and "by which
rights or obligations have been determined, or from which legal
consequences will flow" (citation modified)).
The District Court further determined that the
Nonprofits were likely to succeed in showing that the challenged
final agency actions violated the APA. It did so on the grounds
that the Nonprofits were likely to show that the challenged actions
are both "arbitrary and capricious" and in excess of statutory
authority.4 See 5 U.S.C. § 706(2)(A), (C).
Having determined that the Nonprofits satisfied the
"likelihood of success" factor of the test for obtaining a
preliminary injunction, the District Court went on to explain that
the balance of the equities under the remaining factors of that
test favored them as well. Finally, the District Court addressed
the scope of the preliminary injunction. It observed that the
"normal remedy" for unlawful agency action is vacatur, see 5 U.S.C.
§ 706(2), and it reasoned that a universal preliminary injunction
was therefore appropriate because "similarly situated
nonparties . . . should not be forced to suffer the harms [of the
likely unlawful agency actions] just because there was not enough
time or resources for them to join the suit."
4The District Court declined to reach the Nonprofits' claim
that the challenged agency actions are contrary to law under the
IRA, the IIJA, and regulations governing the administration of
federal awards. See 5 U.S.C. § 706(2)(A).
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The District Court's resulting order preliminarily
"ENJOINED" the Agency Defendants from "freezing, halting, or
pausing on a non-individualized basis the processing and payment
of [already-awarded] funding" appropriated under the IRA or the
IIJA and ordered them to "take immediate steps to resume the
processing, disbursement, and payment" of such funds and "to
release awarded funds previously withheld or rendered
inaccessible." The order also directed the OMB Defendants to
provide notice of the order to all the agencies that received the
Unleashing Memorandum, informing such agencies that "they may not
take any steps to implement, give effect to, or reinstate under a
different name the unilateral, non-individualized directives" in
the Unleashing Memorandum and they must "continue releasing any
disbursements on open awards that were paused due to or in reliance
on" the Unleashing Memorandum. Further, the order prohibited the
Government from "implementing, giving effect to, or reinstating
under a different name the directive in [the Unleashing Memorandum]
to unilaterally freeze awarded funding appropriated under" the IRA
or the IIJA.
The Government timely appealed.
II.
We start with a threshold issue: whether the Nonprofits
have shown, at this stage of the litigation, what they must to
establish that they have Article III standing. See Anversa v.
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Partners Healthcare Sys., Inc., 835 F.3d 167, 174 n.5 (1st Cir.
2016). "At the preliminary injunction stage, . . . the plaintiff
must make a 'clear showing' that she is 'likely' to establish each
element of standing." Murthy v. Missouri, 603 U.S. 43, 58 (2024)
(quoting Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 22
(2008)). The three elements of Article III standing are (1) an
injury-in-fact, (2) that is "fairly traceable" to the defendant's
challenged conduct, and (3) "that is likely to be redressed by a
favorable judicial decision." Conservation L. Found., Inc. v.
Acad. Express, LLC, 129 F.4th 78, 86 (1st Cir. 2025) (quoting
Spokeo, Inc. v. Robins, 578 U.S. 330, 338 (2016)). Our review is
de novo. Id.
A.
The District Court determined that the individual
nonprofit plaintiffs had Article III standing to bring their
claims against the Agency Defendants after finding that they had
met their burden to show that they had suffered an injury-in-fact
traceable to the challenged conduct of each of those defendants.
The District Court explained that the Nonprofits showed both that
the Agency Defendants decided to "summarily freez[e] IIJA and IRA
funds" and that the individual nonprofit plaintiffs suffered
ongoing harms because of those decisions.
On appeal, the Government does not dispute the District
Court's determination that the individual nonprofit plaintiffs
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have met their burden to show that they have standing as to the
Agency Defendants that administer their grants. We agree that
they have done so.
The individual nonprofit plaintiffs alleged that they
were awarded IRA or IIJA grants by USDA, EPA, or HUD as either
direct grantees or subgrantees. They further alleged that they
had been harmed by the actions taken by these agencies to withhold
funds appropriated under those statutes.
For the direct grantees, these allegations suffice to
show that each suffered an injury-in-fact, see TransUnion LLC v.
Ramirez, 594 U.S. 413, 417 (2021), that is fairly traceable to the
challenged conduct, see Conservation L. Found., 129 F.4th at 90.
And there is no dispute that the requested relief would redress
these alleged injuries by precluding the Agency Defendants from
relying on the challenged decisions to impose the categorical
funding freezes.
For the subgrantees, the District Court found that they
did not receive their subgrant payments from the direct grantees
because of the challenged funding freezes, as nothing in the record
indicated that the direct grantees failed to pass on federal
financial assistance that they had received. Because this finding
is not clearly erroneous, we are satisfied that the individual
nonprofit plaintiffs that are subgrantees also have carried their
burden of showing that their injuries are traceable to the relevant
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Agency Defendants' decisions to impose the funding freezes.5 See
Dep't of Com. v. New York, 588 U.S. 752, 768 (2019) (finding
traceability satisfied based "on the predictable effect of
Government action on the decisions of third parties"). And, again,
there is no dispute that the requested relief would provide redress
to these plaintiffs.
B.
As to the individual nonprofit plaintiffs' standing to
bring their claims against the OMB Defendants, the Government does
not take issue with the District Court's determination that the
record supportably shows that the Agency Defendants relied on the
Unleashing Memorandum in adopting their categorical funding
freezes. The Government also does not challenge the District
Court's conclusion that the individual nonprofit plaintiffs
therefore demonstrated a causal connection between the Unleashing
Memorandum and their alleged injuries.
Given what the record shows, we see no reason for concern
either. So, here, too, we see no likely Article-III-standing bar,
given that the requested relief would provide redress.
5 We understand the individual nonprofits plaintiffs to have
each demonstrated standing as to the specific Agency Defendant
that they identify as administering their grant.
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C.
The Government has more to say about standing when it
comes to the National Council of Nonprofits. That organization
premises its standing on the standing of certain of the members
that it represents rather than on any injury that it has directly
suffered. To establish standing on that representative basis, the
National Council of Nonprofits must meet a three-part test. It
must show that (1) "its members would otherwise have standing to
sue in their own right;" (2) "the interests it seeks to protect
are germane to the organization's purpose;" and (3) "neither the
claim nor the requested relief requires the participation of
individual members in the lawsuit." Students for Fair Admissions,
Inc. v. President & Fellows of Harvard Coll., 600 U.S. 181, 199
(2023) (quoting Hunt v. Wash. State Apple Advert. Comm'n, 432 U.S.
333, 343 (1977)).
The Government does not dispute that the National
Council of Nonprofits would meet this test if it qualified as a
membership organization. It contends, however, that the
organization does not so qualify and therefore lacks what is often
referred to as organizational standing.
Relying on the Fifth Circuit's nearly three-decade-old
decision in Friends of the Earth, Inc. v. Chevron Chemical Co.,
129 F.3d 826 (5th Cir. 1997), the Government maintains that an
organization may assert standing on behalf of its members only if
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it explains "how its members direct or control the organization"
and presents "'indicia of membership' such as a 'clearly
articulated and understandable membership structure' with members
who 'elect[] the governing body.'" (Quoting id. at 829 (alteration
in original).) The Government then contends that the National
Council of Nonprofits has not done so.
In Students for Fair Admissions, however, the Supreme
Court rejected the Government's position about what a membership
organization must show to establish standing based on its asserted
members' standing. 600 U.S. at 200-01. The Court there explained
that the "indicia of membership" analysis on which the Government
now relies "has no applicability" when the group advancing
organizational standing is "a voluntary membership organization
with identifiable members." Id. at 201. So long as such a group
"has identified members and represents them in good faith," the
Court explained, no "further scrutiny" into its operation is
required. Id.
The National Council of Nonprofits has made that showing
here. Indeed, the Government does not suggest otherwise. Thus,
this ground for challenging the standing of the National Council
of Nonprofits fails.
That said, the National Council of Nonprofits also must
make the requisite showing under the three-part test for
establishing standing set forth above. But we conclude that it
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has, save for its claims pertaining to one of the Agency Defendants
insofar as it means to bring those claims against that defendant.
As to the first part of the three-part test, the National
Council of Nonprofits has identified members that receive
financial assistance from USDA, EPA, DOE, and DOI through grants
appropriated under the IRA and the IIJA. Because these members
include two of the individual nonprofit plaintiffs that we have
already determined have sufficiently demonstrated their standing
to bring their claims against these agencies as well as the OMB
Defendants, the National Council of Nonprofits has met its burden
as to the first part of the applicable standing test.6
In addition, the complaint alleges that the
organization's mission is to "support[] nonprofits in advancing
their missions." Therefore, the National Council of Nonprofits
also has satisfied the second part of that test, as the interests
6 Althoughthe Government submitted a declaration stating that
DOE had restored regular approval authority for disbursements of
obligated IRA and IIJA funds on February 24, 2025, a member of the
National Council of Nonprofits responded with a declaration of its
own, which indicated that claims for payment were not accepted by
DOE until late March. Notably, the Government does not argue on
appeal that the National Council of Nonprofits is unlikely to
establish that, at the time the complaint was filed, DOE continued
to categorically freeze disbursements for grants funded by the IRA
or the IIJA. Nor does the Government advance any argument on
appeal that DOE's March payments moot the case. Cf. Fed. Bureau
of Investigation v. Fikre, 601 U.S. 234, 241 (2024) (stating that
voluntary cessation of the challenged conduct can, on a proper
showing, moot the lawsuit).
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that the organization seeks to advance through this lawsuit are
germane to its purpose.
As to the test's third part, we again see no problem.
Given the nature of the APA claims and the universal relief sought
via those claims, we see no reason why the individual members of
the National Council of Nonprofits that have standing would need
to participate in the suit.
The only potential wrinkle is that the National Council
of Nonprofits has not identified any of its members that receive
financial assistance from HUD through grants appropriated under
the IRA or the IIJA. That is the only Agency Defendant, however,
for which no such showing has been made by this organization.
Thus, to the extent that the National Council of Nonprofits seeks
to represent its members in claims against HUD, it has not made
the requisite "clear showing" that any of its members "likely" has
an injury-in-fact that is traceable to that agency. Murthy, 603
U.S. at 58 (quoting Winter, 555 U.S. at 22). For that reason,
insofar as the National Council of Nonprofits seeks to bring claims
against HUD, we cannot conclude that it has established that it
has standing to bring them.
III.
We now turn to the Government's remaining challenges on
appeal to the District Court's decision to grant preliminary relief
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to the Nonprofits.7 The parties agree that, in assessing these
challenges, we must assess the District Court's decision under an
abuse of discretion standard. See Cent. Me. Power Co. v. Me.
Comm'n on Governmental Ethics & Election Pracs., 144 F.4th 9, 19
(1st Cir. 2025). The parties further agree that, under that
standard, we review questions of law de novo and factual findings
for clear error. Id. The parties also appear to agree on one
more thing -- that, in applying the abuse of discretion standard
in conducting our review, our focus must be on the four-part test
described above that determines whether an order granting
preliminary injunctive relief is appropriate. See NuVasive, 954
F.3d at 443. We follow the parties' lead.
7 As noted above, the District Court separately addressed an
issue concerning its statutory subject matter
jurisdiction -- namely, whether the sovereign immunity of the
United States bars the Nonprofits' lawsuit from being brought in
federal district court insofar as the "essence" of their APA claims
"is in contract." Am. Sci. & Eng'g, Inc. v. Califano, 571 F.2d
58, 63 (1st Cir. 1978). We agree with the District Court that the
"essence" of the Nonprofits' claims is not contractual. Their APA
claims do not turn on the terms of any contracts, and they sought
APA remedies that included vacating the challenged agency actions.
See 5 U.S.C. §§ 705-706. Notably, though, on appeal, the
Government frames the issue of sovereign immunity as one that
concerns the propriety of the scope of the relief that was ordered
insofar as that relief "compel[s] continued payment of funds under
grants" rather than whether the claims themselves are barred. In
light of this framing, we address this question about sovereign
immunity in Part IV, when we address the propriety of the scope of
the relief that was ordered. See New York v. Trump, 171 F.4th 1,
26 n.11 (1st Cir. 2026).
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A.
With respect to the "likelihood of success" factor, the
Government advances a number of arguments as to why the Nonprofits
are not likely to succeed on their APA claims. We are not
persuaded.
1.
The Government first reprises its argument to the
District Court that the Nonprofits -- or, at least, some of
them -- impermissibly split their claims into two separate
lawsuits: the suit in the U.S. District Court for the District of
Rhode Island that gives rise to this appeal and a suit that was
brought by some of the same plaintiffs in the U.S. District Court
for the District of Columbia. See Nat'l Council of Nonprofits,
775 F. Supp. 3d 100. The Government rests this contention on the
established understanding that when "'actions involving the same
parties and similar subject matter are pending in different federal
district courts' and 'the overlap between the two suits is nearly
complete[,] . . . the usual practice is for the court that first
had jurisdiction to resolve the issues and the other court to
defer.'" Maldonado-Cabrera v. Anglero-Alfaro, 26 F.4th 523, 526
(1st Cir. 2022) (quoting TPM Holdings, Inc. v. Intra-Gold Indus.,
Inc., 91 F.3d 1, 4 (1st Cir. 1996)).
Under our precedent, though, "where the overlap between
[the] two suits is less than complete," the decision to defer "is
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made case by case, based on such factors as the extent of overlap,
the likelihood of conflict, the comparative advantage and the
interest of each forum in resolving the dispute." TPM Holdings,
91 F.3d at 4 (citation omitted). The Government does not dispute
that the "overlap" between the two cases here is less than
complete. Nonetheless, the Government points to several apparent
similarities that it contends show that the Nonprofits have split
their claims despite the lack of complete overlap. Those
similarities are shared counsel, overlapping plaintiffs,8 and
parallel allegations challenging "a categorical [funding] freeze
directed by OMB."
The only claims alleged in the suit before us are APA
claims, though, and each of them requires close analysis of the
specific agency action that is being challenged. Moreover, as the
District Court explained, those claims challenge the OMB
Defendants' "decisions to issue the [Unleashing Memorandum]
mandating a pause," "along with [the Agency Defendants'] funding
freezes arising from" it.
The lead plaintiff in the action filed in the District of
8
Columbia is the National Council of Nonprofits, and, in that
capacity, it seeks relief on behalf of its members. Nat'l Council
of Nonprofits v. Off. of Mgmt. & Budget, 763 F. Supp. 3d 36, 44-46
(D.D.C. 2025). In their briefing to us, the Nonprofits acknowledge
that four of the five individual nonprofit plaintiffs in the suit
at hand are members of the National Council of Nonprofits.
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By contrast, as the District Court noted, the plaintiffs
in the District of Columbia case challenged a different OMB
directive to pause federal financial assistance, and they did not
challenge any separate agency funding freezes. See Nat'l Council
of Nonprofits, 775 F. Supp. 3d at 109-10, 124. Furthermore, the
memorandum challenged in the District of Columbia was withdrawn
(at least nominally), see id. at 110-11, 117-18, while the
Unleashing Memorandum was not.
We recognize that the OMB memorandum at issue in the
District of Columbia proceeding directed a "temporary pause" on
all activities related to obligating or disbursing federal
financial assistance that may be implicated by seven executive
orders issued in the first days of President Trump's second term
in office. See id. at 109-10. We also recognize that one of those
executive orders is the Unleashing Executive Order. Id. at 109.
Even still, an assessment of the lawfulness of the Agency
Defendants' actions taken pursuant to the Unleashing Executive
Order and Unleashing Memorandum (as well as of the lawfulness of
the Unleashing Memorandum itself) does not require an assessment
of whether the OMB directive challenged in the District of Columbia
lawsuit is lawful. Therefore, our resolution of the Nonprofits'
claims does not necessarily depend on the resolution of the same
issues as the plaintiffs' claims in the District of Columbia
lawsuit, or vice versa. Accordingly, we do not see how the
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pendency of the District of Columbia case suffices to show that
the District Court likely abused its discretion by entertaining
the Nonprofits' preliminary injunction motion. See TPM Holdings,
91 F.3d at 4 (holding that a New Hampshire district court did not
abuse its discretion by hearing a title dispute that implicated a
contract claim filed in Texas because resolution of the title
dispute did not require assessment of the merits of the contract
claim).
2.
The Government next argues that the Nonprofits are
unlikely to succeed on their APA claims because those claims fail
to challenge a final agency action within the meaning of that
statute. See 5 U.S.C. §§ 551(13) (defining agency action),
701(b)(2) (similar), 704 (authorizing judicial review of final
agency actions). The Government argues that the Nonprofits' claims
against the Agency Defendants advance only a "programmatic attack"
under the APA, which "the Supreme Court rebuffed in Norton [v.
Southern Utah Wilderness Alliance, 542 U.S. 55, 66-67 (2004)]"
precisely because the challenge there failed to take aim at any
discrete final agency action.
We recognized in New York v. Trump that "Norton does
make clear that the APA permits review of only discrete final
agency actions and precludes the kind of programmatic attack"
rejected by the Supreme Court in Lujan v. National Wildlife
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Federation, 497 U.S. 871 (1990). New York v. Trump, 171 F.4th 1,
18 (1st Cir. 2026) (citation modified). But we also explained in
New York that Norton goes on to clarify that the object of the
"programmatic attack" in Lujan -- the Bureau of Land Management's
(BLM) so-called "land withdrawal review program" -- "was not
itself an agency action." Id. (citation modified); see also Lujan,
497 U.S. at 890 (explaining that the term "'land withdrawal review
program' . . . does not refer to a single BLM order or regulation,
or even to a completed universe of particular BLM orders and
regul