Woonasquatucket River Watershed Council v. Usda

Summary

The First Circuit affirmed in part and vacated in part a preliminary injunction barring federal agencies and OMB/NEC officials from categorically freezing billions of dollars in already-awarded grant funds appropriated under the Infrastructure Investment and Jobs Act and the Inflation Reduction Act pursuant to the 'Unleashing' Executive Order and implementing OMB memorandum. It held that the nonprofit plaintiffs (except the National Council of Nonprofits as to HUD) had Article III standing, that the seven identified freeze decisions were discrete final agency actions likely arbitrary and capricious for ignoring grantees' reliance interests, and that universal relief was permissible under 5 U.S.C. § 705; but it vacated the paragraph ordering agencies to resume payment of awarded funds because it enforced a contractual obligation to pay money beyond the APA's sovereign immunity waiver. No separate opinions were filed.