Department of Education v. California, Docket No. 24A910
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Who has the power to decide when government money gets paid out? In the case of Department of Education v. California, the Supreme Court looked at whether a lower court could stop the government from ending certain education grants and force it to keep paying. The lower court had put a temporary hold on the government’s decision, but the Supreme Court stepped in and said that the government was likely right: the lower court probably didn’t have the authority to order those payments in the first place.
The heart of the matter was whether the Administrative Procedure Act, a law that lets people challenge government actions, actually allows courts to order the government to pay money. The Supreme Court said that, because of rules about when you can sue the government—what’s called “sovereign immunity”—the lower court likely went too far. This means the government can move forward with its plan to end those grants, at least for now.
Summary of the Case
This case, Department of Education v. California, arose when the U.S. Department of Education abruptly terminated over 100 education-related grants awarded to public schools and universities under the Teacher Quality Partnership (TQP) and Supporting Effective Educator Development (SEED) programs. These grants, authorized by Congress, were intended to address teacher shortages and improve teacher quality, particularly in underserved areas. Eight states sued the Department, alleging that the mass termination was arbitrary, capricious, and violated the Administrative Procedure Act (APA). The District Court issued a temporary restraining order (TRO) to halt the terminations and restore the status quo while considering a preliminary injunction. The Department of Education sought emergency relief from the Supreme Court to stay the TRO, arguing that the District Court lacked jurisdiction to order the payment of money under the APA and that the proper forum for such claims was the Court of Federal Claims.
Opinion of the Court
The Supreme Court, in a per curiam opinion, granted the Department of Education’s application to stay the District Court’s TRO pending appeal. The Court reasoned that, although TROs are generally not appealable, the District Court’s order functioned as a preliminary injunction and thus was reviewable. The Court found that the government was likely to succeed in showing that the District Court lacked jurisdiction under the APA to order the payment of money, citing the APA’s limited waiver of sovereign immunity, which does not extend to claims seeking money damages or to enforce contractual obligations to pay money (see 5 U.S.C. §702; Great-West Life & Annuity Ins. Co. v. Knudson, 534 U.S. 204 (2002)). The Court also found that the government would be unlikely to recover disbursed funds if the TRO remained in effect, while the respondents (the states) would not suffer irreparable harm because they could recover any wrongfully withheld funds through other legal means. The stay will remain in effect pending the outcome of the appeal and any petition for certiorari.
Separate Opinions
The Chief Justice (John Roberts) would have denied the application for a stay, but did not write a separate opinion.
Dissenting Opinions
Justice Kagan dissented, arguing that the Court’s intervention was unwarranted and premature. She emphasized that the government did not defend the legality of the grant cancellations and that the states had shown concrete harm from the loss of funding. Kagan contended that the APA generally allows district courts to review agency actions, even when monetary relief may result, and that the majority’s reliance on Great-West was misplaced because that case did not involve the APA. She criticized the Court for acting on an emergency basis without full briefing or argument, suggesting that the dispute should have proceeded in the ordinary course.
Justice Jackson, joined by Justice Sotomayor, also dissented. She argued that the TRO was a standard, time-limited order preserving the status quo and causing no concrete harm to the government, while the grant terminations would inflict significant harm on grantees. Jackson maintained that the government’s claims of irreparable harm were speculative and that the lower courts were better positioned to resolve the merits. She further argued that the Department’s mass termination of grants was likely arbitrary and capricious under the APA, as it lacked individualized reasoning and failed to follow required procedures. Jackson criticized the majority for intervening on technical jurisdictional grounds and for potentially shifting the forum for such disputes from district courts to the Court of Federal Claims.
Sovereign Immunity
The legal nuance in this case centers on the scope of the APA’s waiver of sovereign immunity and the proper forum for challenging agency actions involving monetary relief. The APA allows for judicial review of agency actions and waives sovereign immunity for certain claims, but this waiver does not apply if another statute “forbids the relief which is sought” or if the claim seeks “money damages” (5 U.S.C. §702). The Supreme Court has distinguished between claims for specific relief (such as setting aside agency action) and claims for money damages, with the latter generally falling under the jurisdiction of the Court of Federal Claims via the Tucker Act (28 U.S.C. §1491(a)(1)). In Bowen v. Massachusetts, 487 U.S. 879 (1988), the Court held that district courts could order the release of funds wrongfully withheld by an agency, but not to enforce a contractual obligation to pay money. The majority here interpreted the District Court’s order as effectively enforcing a contractual obligation, thus exceeding the APA’s waiver and requiring the case to be heard in the Court of Federal Claims. The dissenters, however, viewed the relief as within the APA’s scope, emphasizing the need for reasoned agency decision-making and the appropriateness of district court review. This case thus highlights the complex interplay between administrative law, sovereign immunity, and the allocation of judicial authority between district courts and the Court of Federal Claims.