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The Sustainability Institute v. Donald Trump

2026-01-21

Summary

Holding. Vacated and remanded. The court vacated the district court's permanent injunction because the APA does not provide district court jurisdiction over claims designed to enforce contractual obligations to pay money pursuant to federal grants, which belong exclusively in the Court of Federal Claims under the Tucker Act. The court also vacated the preliminary injunction on plaintiffs' constitutional claims because those claims are actually statutory ultra vires claims that failed to satisfy the narrow requirements for such review.

Environmental and agricultural nonprofits and municipalities challenged the Trump administration's suspension and termination of federal grants, alleging violations of the Administrative Procedure Act, appropriations statutes, and the Constitution. The district court issued injunctions requiring grant restoration. The Fourth Circuit vacated both the permanent and preliminary injunctions, finding the district court lacked jurisdiction over the grant-specific claims because they are essentially contractual in nature and belong in the Court of Federal Claims under the Tucker Act, not in district court under the APA. The court also concluded that plaintiffs' constitutional claims were actually statutory claims about executive overreach and failed to meet the strict requirements for nonstatutory ultra vires review.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether district court has jurisdiction over APA claims seeking to restore federal grants
  • Whether the Tucker Act strips district court jurisdiction and vests it in the Court of Federal Claims
  • Whether constitutional claims alleging executive violation of appropriations statutes may proceed as nonstatutory review
  • Whether the government acted ultra vires by freezing or terminating individual grants under appropriations statutes

Procedural posture

The Fourth Circuit reviewed for abuse of discretion an appeal of the district court's orders granting permanent and preliminary injunctions in favor of nonprofit organizations and municipalities challenging the federal government's suspension and termination of environmental and agricultural grants.

Authorities cited

Opinion

majority opinion

USCA4 Appeal: 25-1575 Doc: 94 Filed: 01/21/2026 Pg: 1 of 31

PUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

No. 25-1575

THE SUSTAINABILITY INSTITUTE; AGRARIAN TRUST; ALLIANCE FOR

AGRICULTURE; ALLIANCE FOR THE SHENANDOAH VALLEY; BRONX

RIVER ALLIANCE; CLEANAIRE NC; LEADERSHIP COUNSEL FOR JUSTICE

AND ACCOUNTABILITY; MARBLESEED; PENNSYLVANIA ASSOCIATION

FOR SUSTAINABLE AGRICULTURE; RURAL ADVANCEMENT

FOUNDATION INTERNATIONAL-USA; ORGANIC ASSOCIATION OF

KENTUCKY; EARTH ISLAND INSTITUTE,

and

BALTIMORE, MARYLAND; COLUMBUS, OHIO; MADISON, WISCONSIN;

NASHVILLE, TENNESSEE; NEW HAVEN, CONNECTICUT; SAN DIEGO,

CALIFORNIA,

Plaintiffs – Appellees,

and

CONSERVATION INNOVATION FUND,

Plaintiff,

v.

DONALD J. TRUMP, in his official capacity as President of the United States;

KEVIN HASSETT, in his official capacity as Assistant to the President for

Economic Policy and Director of the National Economic Council; UNITED

STATES OFFICE OF MANAGEMENT AND BUDGET; RUSSELL VOUGHT, in

his official capacity as Director of the United States Office of Management and

Budget; UNITED STATES ENVIRONMENTAL PROTECTION AGENCY; LEE

ZELDIN, in his official capacity as Administrator of the United States

Environmental Protection Agency; UNITED STATES DEPARTMENT OF

AGRICULTURE; BROOKE ROLLINS, in her official capacity as Secretary of

Agriculture; UNITED STATES DEPARTMENT OF TRANSPORTATION; SEAN

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DUFFY, in his official capacity as the Secretary of the United States Department of

Transportation; UNITED STATES DEPARTMENT OF GOVERNMENTAL

EFFICIENCY SERVICE; AMY GLEASON, in her official capacity as Acting

Administrator of the United States DOGE Service; ELON MUSK, in his official

capacity as Senior Advisor of the United States DOGE Service; UNITED STATES

DEPARTMENT OF ENERGY; CHRIS WRIGHT, in his official capacity as the

Secretary of the United States Department of Energy,

Defendants – Appellants.

-----------------------------CONSTITUTIONAL ACCOUNTABILITY CENTER; PROFESSOR TOBIAS

BARRINGTON WOLFF,

Amici Supporting Appellee,

and

U.S. SENATOR SHELDON WHITEHOUSE,

Amicus Supporting Rehearing Petition.

Appeal from the United States District Court for the District of South Carolina, at

Charleston. Richard Mark Gergel, District Judge. (2:25-cv-02152-RMG)

Argued: October 23, 2025 Decided: January 21, 2026

Before NIEMEYER, RUSHING, and HEYTENS, Circuit Judges.

Vacated and remanded by published opinion. Judge Rushing wrote the opinion, in which

Judge Niemeyer and Judge Heytens joined.

ARGUED: Sean R. Janda, UNITED STATES DEPARTMENT OF JUSTICE,

Washington, D.C., for Appellants. Kimberley Hunter, SOUTHERN ENVIRONMENTAL

LAW CENTER, Chapel Hill, North Carolina, for Appellees. ON BRIEF: Brett A.

Shumate, Assistant Attorney General, Daniel Tenny, Civil Division, UNITED STATES

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DEPARTMENT OF JUSTICE, Washington, D.C.; Bryan P. Stirling, United States

Attorney, OFFICE OF THE UNITED STATES ATTORNEY, Charleston, South Carolina,

for Appellants. Irena Como, Nicholas S. Torrey, Carl T. Brzorad, Spencer Gall,

SOUTHERN ENVIRONMENTAL LAW CENTER, Chapel Hill, North Carolina; Graham

Provost, Elaine Poon, Jonathan Miller, PUBLIC RIGHTS PROJECT, Oakland, California;

Mark Ankcorn, Senior Chief Deputy City Attorney, CITY OF SAN DIEGO, San Diego,

California, for Appellees. Gerson Smoger, SMOGER & ASSOCIATES, P.C., Dallas,

Texas; Robert S. Peck, CENTER FOR CONSTITUTIONAL LITIGATION, P.C.,

Washington, D.C., for Amicus Supporting Petition for Initial Hearing En Banc United

States Senator Sheldon Whitehouse. Elizabeth B. Wydra, Brianne J. Gorod, Brian R.

Frazelle, Miriam Becker-Cohen, Nina Henry, CONSTITUTIONAL ACCOUNTABILITY

CENTER, Washington, D.C., for Amicus Constitutional Accountability Center. Adriana

S. Kosovych, New York, New York, Paul DeCamp, Kathleen Barrett, EPSTEIN, BECKER

& GREEN, P.C., Washington, D.C., for Amicus Professor Tobias Barrington Wolff.

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RUSHING, Circuit Judge:

In early 2025, the federal government suspended or terminated environmental and

agricultural grants it had previously awarded to several nonprofit organizations and local

governments. The grantees sued, alleging that the President of the United States and

various federal agencies and officials (collectively, the Government) violated the

Administrative Procedure Act (APA), certain appropriations statutes, and the Constitution

by terminating or suspending their grants.

The district court issued a permanent injunction on Plaintiffs’ APA claims,

“[s]et[ting] aside the freeze and/or termination” of Plaintiffs’ grants and directing the

Government to “restore Plaintiffs[’] access to grant funds immediately.” Sustainability

Inst. v. Trump, 784 F. Supp. 3d 861, 871 (D.S.C. 2025). The court also issued a preliminary

injunction on Plaintiffs’ ultra vires and nonstatutory review claims, enjoining the

Government “from freezing and/or terminating” Plaintiffs’ grants and again “direct[ing]

that Plaintiffs[’] access to funding for these grants be immediately restored.” Id. at 878.

The Government appealed, and we stayed the district court’s injunctions pending

appeal. See Sustainability Inst. v. Trump, No. 25-1575, 2025 WL 1587100 (4th Cir. June

5, 2025). Now, after briefing and oral argument, we conclude that the district court abused

its discretion in issuing both injunctions. We therefore vacate the district court’s order and

remand for further proceedings consistent with this opinion.

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I.

A.

Plaintiffs are nonprofit organizations and local governments that were awarded or

were subrecipients on 38 federal grants across various funding programs administered by

the Department of Energy, the Environmental Protection Agency, the Department of

Agriculture, and the Department of Transportation. In the grant agreements, the

administering agencies “agreed to provide funding up to a specified dollar amount, over a

specified time period, for specified work advancing Congress’s objectives.” J.A. 115. In

exchange, the grantees “agreed to use grant funds to complete their agency-approved

project on an agency-approved timeline.” J.A. 115–116.

The funds for Plaintiffs’ grants were appropriated primarily through the Inflation

Reduction Act (IRA), Pub. L. No. 117-169, 136 Stat. 1818 (2022), the Infrastructure

Investment and Jobs Act (IIJA), Pub. L. No. 117-58, 135 Stat. 429 (2021), and the

American Rescue Plan Act of 2021, Pub. L. No. 117-2, 135 Stat. 4. Each statutory scheme

follows a similar pattern: Congress appropriated large sums of money to establish certain

programs or achieve certain goals, while leaving it to the administering agencies to

determine how, and to whom, to allocate funds.

For example, several Plaintiffs received Environmental and Climate Justice block

grants. The IRA appropriated $2.8 billion toward that end, stating that the EPA

Administrator “shall use” the funding to award grants to eligible entities to “carry out”

listed activities that “benefit disadvantaged communities, as defined by the Administrator.”

42 U.S.C. § 7438(a)(1), (b)(1). Another part of the IRA appropriated over $8 billion for

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the Department of Agriculture “to carry out . . . the environmental quality incentives

program” by funding “agricultural conservation practices or enhancements.” IRA

§ 21001(a)(1)(A), (B)(iii), 136 Stat. at 2015–2016. One Plaintiff received a grant funded

by these provisions. The rest of Plaintiffs’ grants were funded by similar statutes. See,

e.g., IIJA § 601(1)(B), 135 Stat. at 1396 (appropriating approximately $1.96 billion for

“‘Environmental Programs and Management’” and directing that $238 million “shall be

for Chesapeake Bay”); American Rescue Plan Act of 2021 § 1006(b)(1), 135 Stat. at 13

(appropriating funds that the Secretary of Agriculture “shall use” to benefit “socially

disadvantaged farmers, ranchers, or forest landowners, or other members of socially

disadvantaged groups”). 1

B.

In January and February 2025, President Donald Trump issued three executive

orders touching on federal grant funding. The first required, as relevant here, that “[a]ll

agencies shall immediately pause the disbursement of funds appropriated through the

Inflation Reduction Act of 2022 . . . or the Infrastructure Investment and Jobs Act.”

Unleashing American Energy, Exec. Order No. 14,154, 90 Fed. Reg. 8353, 8357 (Jan. 20,

2025). The President further ordered agencies to “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 policy outlined” elsewhere in the

Executive Order. Id. The second order directed federal agencies to “terminate, to the

1

The joint appendix filed by the parties in this appeal contains a complete list of

Plaintiffs’ grants and the corresponding appropriations provisions. See J.A. 2125–2139.

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maximum extent allowed by law, all . . . ‘environmental justice’ offices and positions” and

“all . . . ‘equity-related’ grants or contracts.” Ending Radical and Wasteful Government

DEI Programs and Preferencing, Exec. Order No. 14,151, 90 Fed. Reg. 8339, 8339 (Jan.

20, 2025). And the third instructed agencies to “review all existing covered contracts and

grants and . . . terminate or modify . . . such covered contracts and grants to reduce overall

Federal spending or reallocate spending to promote efficiency and advance the policies of

[the President’s] Administration.” Implementing the President’s “Department of

Government Efficiency” Cost Efficiency Initiative, Exec. Order No. 14,222, 90 Fed. Reg.

11095, 11095–11096 (Feb. 26, 2025).

Following the Executive Orders, agencies began suspending and then terminating

covered grants. The Office of Management and Budget (OMB) issued guidance

memoranda directing agencies to review their funding programs for compliance with

presidential priorities and to pause relevant funding pending review. The agencies funding

Plaintiffs’ grants also issued directives pausing grant payments. After the initial

suspension, some of Plaintiffs’ grants were terminated, some were restored, and, at the time

of the district court’s order, some remained paused pending termination.

C.

Plaintiffs sued in the U.S. District Court for the District of South Carolina. Their

amended complaint asserted six counts. Count I alleged that the three Executive Orders

issued by President Trump and “Program Freezing Actions” taken by other Defendants

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violated the constitutional “separation of powers.” 2 J.A. 137 (capitalization omitted).

According to Plaintiffs, the Government’s actions “contravene[d] Congress’s directives in

the IRA, IIJA, and other statutes to carry out and fund the statutory programs at issue in

this case” and thereby violated not only the statutes but also the Constitution. J.A. 139.

Count II similarly alleged that the Executive Orders and Program Freezing Actions violated

the Constitution’s Presentment Clauses because those actions sought “to terminate or

modify parts of the IRA or IIJA and other relevant statutes after they were passed by

Congress and signed by the President.” J.A. 140 (internal quotation marks and brackets

omitted). Plaintiffs pled Counts I and II as “nonstatutory review and ultra vires” claims.

J.A. 137, 140 (capitalization omitted).

Counts III and IV focused on the Program Freezing Actions and alleged violations

of the APA. Count III alleged that the Program Freezing Actions were arbitrary and

capricious. And Count IV alleged, generally, that the Program Freezing Actions were not

in accordance with law and without statutory authority because no statute authorized the

Government to freeze Plaintiffs’ grants and the actions were “contrary to the IRA, the IIJA

and other statutes creating and appropriat[ing] money to the programs for which Plaintiffs

receive grants.” J.A. 144.

2

Plaintiffs loosely defined “Program Freezing Actions” as the OMB memoranda,

the grant-freezing directives (as well as other directives) issued by the agencies funding

Plaintiffs’ grants, and “various actions that prevent Plaintiffs from accessing grant funds to

proceed with the congressionally mandated programs entrusted to them.” J.A. 63–64. The

“various actions” taken by the agencies include, inter alia, the agencies’ decisions to

“block[] Plaintiffs’ access to the websites and portals needed to access funds,” the labeling

of Plaintiffs’ accounts as “‘suspended,’” and oral communications between the agencies

and Plaintiffs. J.A. 64.

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Lastly, Count V alleged that the Executive Orders and the Program Freezing Actions

violated the First Amendment, and Count VI alleged that the Executive Orders and

Program Freezing Actions “violate[d] the IRA and the IIJA and other relevant statutes.”

J.A. 147 (capitalization omitted). Plaintiffs pled Count VI as a “nonstatutory review and

ultra vires” claim. J.A. 147 (capitalization omitted).

The complaint requested various forms of relief. Plaintiffs asked the district court

to declare that certain sections of the Executive Orders were unlawful. They also asked

the court to declare that “executive actions taken to freeze or terminate [Plaintiffs’]

awarded federal grants . . . violate the United States Constitution, the statutory provisions

enacting and appropriating funds to these programs, and the APA.” J.A. 149–150. Most

relevant here, Plaintiffs requested that the district court “hold unlawful and set aside any

actions taken . . . to freeze or terminate [their] federal grants”; “[p]reliminarily and

permanently enjoin Defendants from continuing to freeze or terminating [their] grants or

effectuating any termination”; and “[p]rohibit Defendants from otherwise impeding,

blocking, cancelling, or terminating Plaintiffs’ access to their funds.” J.A. 150–151.

Plaintiffs moved for a preliminary injunction, which the Government opposed.

Regarding Plaintiffs’ APA claims, the Government primarily contended that the Tucker

Act stripped the district court of jurisdiction, which belonged exclusively to the Court of

Federal Claims. Rejecting that argument, the district court concluded that it had

jurisdiction to resolve Plaintiffs’ APA claims because they did “not turn on the terms of a

contract between the parties” and sought “equitable, not monetary, relief.” Sustainability

Inst. v. Trump, No. 2:25-cv-2152, 2025 WL 1486978, at *3–4 (D.S.C. Apr. 29, 2025).

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After the court’s jurisdictional ruling, the Government consented to the entry of judgment

on Plaintiffs’ APA claims as to 32 of the grants at issue. The district court then declared

“the freeze and/or termination” of the 32 grants unlawful, permanently “[s]et[] aside the

freeze and/or termination” of those grants, and directed the Government to “restore

Plaintiffs[’] access to grant funds immediately.” Sustainability Inst., 784 F. Supp. 3d at

871; see also id. at 880 (“Plaintiffs are provided declaratory and permanent injunctive

relief.”). 3

As for Plaintiffs’ non-APA claims, the district court determined that “Plaintiffs’

Separation of Powers and ultra vires claims (Counts I and II) plainly state a claim for

nonstatutory review” over which the court possessed jurisdiction. Id. at 873. Moving to

Plaintiffs’ likelihood of success on the merits, the court found that the Government “failed

to produce a single document showing any individualized review of Plaintiffs’ grants or

discussion of any basis for freezing or terminating the grants other than disapproval of the

purposes of the funding.” Id. at 875. The court considered this “strong support for

Plaintiffs’ claim that the freezing and/or termination of the 32 grants constituted a violation

of [the agencies’] duty to ‘faithfully execute[]’ the laws of the United States.” Id. (quoting

U.S. Const. art. II, § 3). In addition, the district court “note[d] that Plaintiffs’ nonstatutory

review claims and Plaintiffs’ APA claims which Defendants have elected not to contest

are, for all practical purposes, mirror images of each other.” Id. Finding the remaining

3

The district court denied injunctive relief as to six grants. Sustainability Inst., 784

F. Supp. 3d at 879–880 (denying preliminary injunction as to “Grants 27–32”). Those six

grants are not before us on appeal.

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preliminary injunction elements satisfied, id. at 875–878, the district court preliminarily

“enjoin[ed]” the Government “from freezing and/or terminating” the 32 contested grants

and again “direct[ed] that Plaintiffs[’] access to funding for these grants be immediately

restored,” id. at 878.

The Government timely appealed, and 28 U.S.C. § 1292(a)(1) authorizes our

review.

II.

“We review an order granting an injunction for abuse of discretion.” PBM Prods.,

LLC v. Mead Johnson & Co., 639 F.3d 111, 125 (4th Cir. 2011); MicroStrategy Inc. v.

Motorola, Inc., 245 F.3d 335, 339 (4th Cir. 2001). We “review[] factual findings for clear

error and legal conclusions de novo.” PBM Prods., 639 F.3d at 125.

III.

To obtain a preliminary injunction, plaintiffs must “show (1) that they are likely to

succeed on the merits, (2) that they are likely to suffer irreparable harm in the absence of

preliminary [injunctive] relief, (3) that the balance of equities tips in their favor, and

(4) that the injunction is in the public interest.” Am. Fed’n of Tchrs. v. Bessent, 152 F.4th

162, 168–169 (4th Cir. 2025) (footnote omitted). The standard for a permanent injunction

is “essentially the same” as the standard for a preliminary injunction, except that plaintiffs

must show “actual success” on the merits rather than just a “likelihood.” Amoco Prod. Co.

v. Vill. of Gambell, 480 U.S. 531, 546 n.12 (1987). As used in these standards, the term

“merits” includes jurisdictional issues. See Bessent, 152 F.4th at 168 n.3.

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The Government advances two primary reasons why the district court erred in

issuing the injunctions here. First, the Government argues that the district court lacked

jurisdiction over Plaintiffs’ APA claims because those claims are essentially contractual

and therefore belong in the Court of Federal Claims. Second, the Government argues that

Plaintiffs’ nonstatutory review claims exceed the strictly limited boundaries of such

review. We address each issue in turn. 4

A.

The Government contends that Plaintiffs’ APA claims are essentially contractual

and therefore belong in the Court of Federal Claims. Plaintiffs, in turn, insist that their

APA claims arise “not from contracts,” but from “the Constitution and federal statute.”

Resp. Br. 35. Limiting our review to the injunction the district court entered on Plaintiffs’

APA claims, we conclude the district court lacked jurisdiction to order that relief, which

was designed to enforce obligations to pay money pursuant to Plaintiffs’ grants.

“It is axiomatic that the United States may not be sued without its consent and the

existence of consent is a prerequisite for jurisdiction.” Randall v. United States, 95 F.3d

339, 345 (4th Cir. 1996) (internal quotation marks omitted). The APA waives the federal

government’s sovereign immunity from suits “seeking relief other than money damages

and stating a claim that an agency or an officer or employee thereof acted or failed to act

in an official capacity or under color of legal authority.” 5 U.S.C. § 702. However, “[t]he

4

Because we vacate the injunctions on these two bases, we do not address the

Government’s additional arguments that the challenged actions are committed to agency

discretion by law under the APA or that the equities do not support the district court’s

injunctions.

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waiver does not apply ‘if any other statute that grants consent to suit expressly or impliedly

forbids the relief which is sought.’” Match-E-Be-Nash-She-Wish Band of Pottawatomi

Indians v. Patchak, 567 U.S. 209, 215 (2012) (quoting 5 U.S.C. § 702).

The Tucker Act gives the Court of Federal Claims jurisdiction over “any claim

against the United States founded . . . upon any express or implied contract with the United

States.” 28 U.S.C. § 1491(a)(1). When it applies, the Tucker Act “vest[s] subject matter

jurisdiction exclusively in” the Court of Federal Claims. 5 Portsmouth Redevelopment &

Hous. Auth. v. Pierce, 706 F.2d 471, 473 (4th Cir. 1983); see also Dep’t of Educ. v.

California, 145 S. Ct. 966, 968 (2025) (per curiam). “[A] plaintiff whose claims against

the United States are essentially contractual [is] not . . . allowed to avoid the jurisdictional

(and hence remedial) restrictions of the Tucker Act by casting its pleadings in terms that

would enable a district court to exercise jurisdiction under a separate statute and enlarged

waivers of sovereign immunity, as under the APA.” Megapulse, Inc. v. Lewis, 672 F.2d

959, 967 (D.C. Cir. 1982); see also Match-E-Be-Nash-She-Wish, 567 U.S. at 215

(explaining that Section 702 of the APA “prevents plaintiffs from exploiting the APA’s

waiver to evade limitations on suit contained in other statutes”).

The question here is whether Plaintiffs’ APA claims for injunctive relief are

“founded . . . upon any express or implied contract with the United States.” 28 U.S.C.

§ 1491(a)(1). If so, the district court lacked jurisdiction over the claims. To determine

5

There is one exception not relevant here: District courts and the Court of Federal

Claims have concurrent jurisdiction over certain damages claims not exceeding $10,000.

See 28 U.S.C. § 1346(a)(2); Randall, 95 F.3d at 347.

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whether a claim is “at its essence a contract claim,” courts examine “the source of the rights

upon which the plaintiff[s] base[] [their] claims” and “the type of relief sought (or

appropriate).” Megapulse, 672 F.2d at 968; see United States v. J & E Salvage Co., 55

F.3d 985, 988–989 (4th Cir. 1995) (applying Megapulse).

The Supreme Court’s recent decisions in Department of Education v. California and

National Institutes of Health v. American Public Health Association are instructive. See

Nat’l Insts. of Health v. Am. Pub. Health Ass’n, 145 S. Ct. 2658, 2664 (2025) (Gorsuch, J.,

concurring part and dissenting in part) (emphasizing that the “reasoning” of Supreme Court

decisions regarding interim relief “binds lower courts as a matter of vertical stare decisis”);

see also Trump v. Boyle, 145 S. Ct. 2653, 2654 (2025) (explaining that the Supreme Court’s

“interim orders . . . inform how a court should exercise its equitable discretion in like

cases”). In California, the district court entered an order on the plaintiffs’ APA claims

“enjoining the Government from terminating various education-related grants” and

“requir[ing] the Government to pay out past-due grant obligations and to continue paying

obligations as they accrue[d].” 145 S. Ct. at 968. The Supreme Court stayed the district

court’s order pending appeal, finding that “the Government [was] likely to succeed in

showing that the District Court lacked jurisdiction” to issue the order. Id. The Court

explained that “the APA’s limited waiver of immunity does not extend to orders ‘to enforce

a contractual obligation to pay money’ along the lines of what the District Court ordered”

in that case. Id. (quoting Great-West Life & Annuity Ins. Co. v. Knudson, 534 U.S. 204,

212 (2002)). “Instead, the Tucker Act grants the Court of Federal Claims jurisdiction over

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suits based on ‘any express or implied contract with the United States.’” Id. (quoting 28

U.S.C. § 1491(a)(1)).

In National Institutes of Health, the district court “vacat[ed] the Government’s

termination of various research-related grants.” 145 S. Ct. at 2659. The Supreme Court

again stayed the district court’s order. See id. The Court explained that “[t]he

Administrative Procedure Act’s limited waiver of sovereign immunity does not provide the

District Court with jurisdiction to adjudicate claims based on the research-related grants or

to order relief designed to enforce any obligation to pay money pursuant to those grants.”

Id. (internal quotation marks and brackets omitted). The Government was therefore likely

to succeed in showing that the district court lacked jurisdiction to enter the order vacating

the grant terminations. See id.

There is no meaningful difference between the district court’s order here and the

district court’s order in California. Like in California, the Government here froze or

terminated grants en masse, allegedly without individualized analysis. See Sustainability

Inst., 784 F. Supp. 3d at 870; California v. Dep’t of Educ., 769 F. Supp. 3d 72, 77 (D. Mass.

2025) (“The record reflects that there was no individualized analysis of any of the programs

. . . .”). Like in California, Plaintiffs here sought restoration of their specific grants under

the APA. See, e.g., J.A. 150–151 (asking the district court to “[p]reliminarily and

permanently enjoin Defendants from continuing to freeze or terminating grants or

effectuating any termination” and “[p]rohibit Defendants from otherwise impeding,

blocking, cancelling, or terminating Plaintiffs’ access to their funds”); see California, 769

F. Supp. 3d at 80. And like in California, that relief is exactly what the district court

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awarded. See Sustainability Inst., 784 F. Supp. 3d at 871 (“set[ting] aside the freeze and/or

termination of Grants 1–26 and 33–38” and “direct[ing] [the Government] to restore

Plaintiffs[’] access to grant funds immediately”); California, 145 S. Ct. at 968 (explaining

that the California district court “enjoin[ed] the Government from terminating various

education-related grants” and “require[d] the Government to pay out past-due grant

obligations and to continue paying obligations as they accrue[d]”). If the California district

court lacked jurisdiction to issue its order, it follows that the district court here did as well.

And our conclusion is further confirmed by the Supreme Court’s subsequent decision in

National Institutes of Health. See 145 S. Ct. at 2659 (explaining that the APA “does not

provide the District Court with jurisdiction to adjudicate claims based on the researchrelated grants or to order relief designed to enforce any obligation to pay money pursuant

to those grants” (internal quotation marks omitted)).

Plaintiffs offer several arguments to try to circumvent California and National

Institutes of Health. We find none of them persuasive. To begin, Plaintiffs insist that their

APA claims “arise from the Constitution and federal statute, not from contracts.” Resp.

Br. 35; see Megapulse, Inc., 672 F.2d at 968 (examining the “the source of the rights upon

which the plaintiff[s] base[] [their] claims” to determine whether a claim is essentially

contractual). Thus, they argue, their claims are not essentially contractual.

The Supreme Court, however, considered and rejected the same argument in

California and National Institutes of Health. In California, the plaintiffs argued that the

district court had jurisdiction over their APA claims because they alleged that the grant

terminations were “contrary to the Department’s regulations and arbitrary and capricious

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when viewed in light of the statutes authorizing those grants.” See Opposition to Stay

Application at 22, Dep’t of Educ. v. California, 145 S. Ct. 966 (2025) (No. 24A910), 2025

WL 963588; see also id. (“The controversy thus centers around federal statutes and

regulations.”). Yet the Supreme Court still found that the Government was likely to

succeed in showing that the claims belonged in the Court of Federal Claims under the

Tucker Act. California, 145 S. Ct. at 968. Likewise, in National Institutes of Health, the

plaintiffs argued that certain “agency-wide policies” were unlawful “because they

violate[d] various federal statutes and the Constitution . . . and that the [grant] terminations

flowed directly from those unlawful policies.” Am. Pub. Health Ass’n v. Nat’l Insts. of

Health, 145 F.4th 39, 51 (1st Cir. 2025). But again, the Supreme Court stayed “the District

Court’s judgments vacating the Government’s termination of various research-related

grants” because the APA did “not provide the District Court with jurisdiction” to order

such relief. Nat’l Insts. of Health, 145 S. Ct. at 2659.

The upshot is that the alleged statutory and constitutional violations do not alter the

essentially contractual nature of Plaintiffs’ APA claims before us on appeal. “The core of

[P]laintiffs’ suit alleges that the Government unlawfully terminated their grants.” Id. at

2665 (Kavanaugh, J., concurring in part and dissenting in part). And Plaintiffs identify no

source of law, besides their grant agreements, guaranteeing them the relief they seek:

continued payments on those grants. At bottom, Plaintiffs’ “injury and alleged right to

payment stem from the government’s refusal to pay promised grants according to the terms

and conditions that accompany them.” Id. at 2664 (Gorsuch, J., concurring in part and

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dissenting in part). 6 Under the Supreme Court’s recent decisions, “the source of the rights

upon which the plaintiff[s] base[] [their] claims” is thus contractual. Megapulse, 672 F.2d

at 968.

Next, Plaintiffs argue that their APA claims are not essentially contractual because

they seek “forward-looking injunctive and declaratory relief.” Resp. Br. 41 (capitalization

omitted); see Megapulse, 672 F.2d at 968 (evaluating relief requested to determine whether

a plaintiff’s claim is essentially contractual). Once again, we disagree. To start, as

discussed above, the relief ordered by the district court here and the relief ordered by the

district courts in California and National Institutes of Health are substantially the same.

Here, the district court declared “the freeze and/or termination” of Plaintiffs’ grants

unlawful, “[s]et[] aside the freeze and/or termination” of Plaintiffs’ grants, “direct[ed]” the

Government to “restore Plaintiffs[’] access to [their] grant funds immediately,” and

prohibited the Government “from freezing, terminating or otherwise interfering with the

funding . . . without written authorization.” Sustainability Inst., 784 F. Supp. 3d at 871. In

California, the district court “enjoin[ed] the Government from terminating” the grants and

“requir[ed] the Government to pay out past-due grant obligations and to continue paying

obligations as they accrue[d].” 145 S. Ct. at 968. And in National Institutes of Health, the

district court “vacate[d] the Government’s termination of various research-related grants.”

145 S. Ct. at 2659.

6

Plaintiffs do not dispute that their grants are contracts under the Tucker Act.

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We see no meaningful distinction between the relief ordered here and the relief

ordered in those cases, which the Supreme Court determined was sufficiently contractual

to trigger the Tucker Act. The relief Plaintiffs sought and the relief the district court gave

them was the reinstatement of their grants. That is “the classic contractual remedy of

specific performance.” Spectrum Leasing Corp. v. United States, 764 F.2d 891, 894 (D.C.

Cir. 1985) (emphasis added); cf. Nat’l Insts. of Health, 145 S. Ct. at 2664 (Gorsuch, J.,

concurring in part and dissenting in part) (“An order vacating the government’s decision

to terminate grants under the APA is in every meaningful sense an order requiring the

government to pay those grants.”). So contrary to Plaintiffs’ assertions, the relief they

sought and the district court ordered is contractual in nature. See Ingersoll-Rand Co. v.

United States, 780 F.2d 74, 80 (D.C. Cir. 1985) (holding that “a request for specific

performance must be resolved by” the Court of Federal Claims). 7

7

Plaintiffs retort that “the Court of Federal Claims cannot provide the forwardlooking relief Plaintiffs seek.” Resp. Br. 43. But the fact that the Tucker Act does not

allow the specific relief Plaintiffs seek does not mean that their claims must proceed under

the APA; rather, it shows that Congress made the dispositive choice for contract claims

against the United States to be limited to certain money damages. See 5 U.S.C. § 702

(“Nothing herein . . . confers authority to grant relief if any other statute that grants consent

to suit expressly or impliedly forbids the relief which is sought.”); Match-E-Be-Nash-SheWish, 567 U.S. at 216 (“[W]hen Congress has dealt in particularity with a claim and [has]

intended a specified remedy—including its exceptions—to be exclusive, that is the end of

the matter; the APA does not undo that judgment.” (internal quotation marks omitted));

Spectrum Leasing, 764 F.2d at 894–895 (holding that “Congress intended the jurisdiction

and remedies of the Tucker Act to be exclusive in cases based on government contracts”

and holding that an essentially contractual claim belonged in the Court of Federal Claims

even though the claim sought specific performance (emphasis added)); Megapulse, 672

F.2d at 967 (explaining that “a plaintiff whose claims against the United States are

essentially contractual should not be allowed to avoid the jurisdictional (and hence

remedial) restrictions of the Tucker Act” by requesting injunctive relief in district court).

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Contrary to Plaintiffs’ suggestions, the Supreme Court’s decision in Bowen v.

Massachusetts, 487 U.S. 879 (1988), cannot help them. In California, the Court

acknowledged Bowen’s general rule that “a district court’s jurisdiction ‘is not barred by the

possibility’ that an order setting aside an agency’s action may result in the disbursement of

funds.” 145 S. Ct. at 968 (quoting Bowen, 487 U.S. at 910). But the Court went on to

distinguish Bowen, explaining that the APA does not authorize a district court to issue an

“order[] ‘to enforce a contractual obligation to pay money’ along the lines of what the

District Court” ordered in California because “the Tucker Act grants the Court of Federal

Claims jurisdiction over suits based on ‘any express or implied contract with the United

States.’” Id. (first quoting Great-West Life & Annuity Ins., 534 U.S. at 212; then quoting

28 U.S.C. § 1491(a)(1)). The same reasoning applies here. As discussed above, there is

no meaningful difference between the district court’s order restoring Plaintiffs’ grants and

the order issued in California. Therefore California, not Bowen, controls here.

For these reasons, we conclude that the district court lacked jurisdiction to

adjudicate Plaintiffs’ APA claims challenging the freezing or termination of their grants

and to order enforcement of those grants. See Sustainability Inst., 784 F. Supp. 3d at 871.

The permanent injunction is therefore vacated.8

8

We recognize that Plaintiffs challenged not only their individual grant terminations

but also the Executive Orders and various directives issued by the agencies funding their

grants. The district court, however, did not purport to vacate any of these actions; instead,

the court homed in on the individual grant terminations. See Sustainability Inst., 784 F.

Supp. 3d at 871. We therefore express no opinion on whether the district court had

jurisdiction to review these high-level actions under the APA, nor what the appropriate

remedy would be in the event of an APA violation. See Nat’l Insts. of Health, 145 S. Ct.

at 2660–2662 (Barrett, J., concurring).

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B.

Turning to the preliminary injunction the district court entered on “Plaintiffs’

Separation of Powers and ultra vires claims,” Sustainability Inst., 784 F. Supp. 3d at 873,

the Government argues that Plaintiffs’ claims exceed the limited bounds of nonstatutory

review. We agree. Plaintiffs’ attempt to cast their claims as constitutional, and not

statutory, fails under Supreme Court precedent. And when viewed in the proper light,

Plaintiffs’ claims for restoration of their grants likely cannot satisfy the strict limitations

on ultra vires review.

1.

As previously explained, “[t]he general rule is that the sovereign, i.e., the United

States, may not be sued without its consent.” Strickland v. United States, 32 F.4th 311,

363 (4th Cir. 2022). But “[t]he Supreme Court has recognized, in what is sometimes

referred to as the Larson-Dugan exception to sovereign immunity, that a plaintiff can

obtain injunctive relief against an individual officer or agent of the United States in his

official capacity for acts beyond his statutory or constitutional authority because such

actions ‘are considered individual and not sovereign actions.’” Id. (quoting Larson v.

Domestic & Foreign Com. Corp., 337 U.S. 682, 689 (1949)). “These types of claims are

generally referred to as nonstatutory review claims.” Id.

The availability of nonstatutory review depends largely on whether the claimed

violation is statutory or constitutional. The implied nonstatutory exception for claims

alleging that a federal actor has violated a federal statute—often called ultra vires claims—

is “necessarily narrow.” Ancient Coin Collectors Guild v. U.S. Customs & Border Prot.,

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698 F.3d 171, 179 (4th Cir. 2012); see also Long Term Care Partners, LLC v. United

States, 516 F.3d 225, 234 (4th Cir. 2008). As the Supreme Court recently explained,

“[b]ecause ultra vires review could become an easy end-run around” limitations imposed

by statutes, the Court’s “cases have strictly limited nonstatutory ultra vires review.”

Nuclear Regul. Comm’n v. Texas, 145 S. Ct. 1762, 1775 (2025). It is not available “simply

because an agency has arguably reached ‘a conclusion which does not comport with the

law.’” Id. at 1776 (quoting Boire v. Greyhound Corp., 376 U.S. 473, 481 (1964)). Rather,

ultra vires review “applies only when an agency has taken action entirely ‘in excess of its

delegated powers and contrary to a specific prohibition’ in a statute.” Id. (quoting Ry.

Clerks v. Ass’n for Benefit of Non-contract Emps., 380 U.S. 650, 660 (1965)); see Long

Term Care Partners, 516 F.3d at 234 (explaining that ultra vires review is “appropriate

only where there is a ‘strong and clear demonstration that a clear, specific and mandatory

statutory provision has been violated’” (brackets omitted) (quoting Newport News

Shipbuilding & Dry Dock Co. v. NLRB, 633 F.2d 1079, 1081 (4th Cir. 1980))). A plaintiff

invoking ultra vires review also must demonstrate that no other “statutory scheme provides

aggrieved persons ‘with a meaningful and adequate opportunity for judicial review,’” and

that no statute “forecloses all other forms of judicial review.” Nuclear Regul. Comm’n,

145 S. Ct. at 1776 (quoting Bd. of Governors of Fed. Reserve Sys. v. MCorp Fin., Inc., 502

U.S. 32, 43 (1991)). An ultra vires claim is “essentially a Hail Mary pass—and in court as

in football, the attempt rarely succeeds.” Id. (internal quotation marks omitted).

Nonstatutory review claims alleging a constitutional violation, however, are not

subject to the same restrictions. The Supreme Court has held that “where Congress intends

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to preclude judicial review of constitutional claims its intent to do so must be clear.”

Webster v. Doe, 486 U.S. 592, 603 (1988). The Court has “require[d] this heightened

showing in part to avoid the serious constitutional question that would arise if a federal

statute were construed to deny any judicial forum for a colorable constitutional claim.” Id.

(internal quotation marks omitted).

Here, Plaintiffs contend that the Government’s freeze and termination of their grants

violated the Constitution’s “separation of powers” and the Presentment Clauses. 9 That is,

they attempt to assert constitutional, not statutory, claims. And because their claims are

allegedly constitutional, they argue that the “heightened standard of review for ultra vires

claims based on statutory violations” does not apply. Resp. Br. 32.

We disagree. Though Plaintiffs style their claims as constitutional, the Supreme

Court has foreclosed efforts to recast statutory claims as constitutional ones, and that

precedent applies here. In Dalton v. Specter, the Supreme Court considered and rejected

the argument that “whenever the President acts in excess of his statutory authority, he also

violates the constitutional separation-of-powers doctrine” and therefore “judicial review

must be available to determine whether the President has statutory authority for whatever

9

The district court granted Plaintiffs’ “motion for preliminary injunction on Claims

I and II,” which alleged a violation of the separation of powers and a violation of the

Presentment Clauses, respectively. Sustainability Inst., 784 F. Supp. 3d at 878; see also

id. at 873 (concluding that “Plaintiffs’ Separation of Powers and ultra vires claims (Counts

I and II) plainly state a claim for nonstatutory review”). The court, however, never

discussed or even mentioned the Presentment Clauses in its opinion, including when

assessing Plaintiffs’ likelihood of success on the merits. We note that Plaintiffs did not

advance their Presentment Clauses claim in their motion for a preliminary injunction, and

they do not mention it on appeal. But because it appears that the district court granted

relief on that claim, we address it.

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action he takes.” 511 U.S. 462, 471 (1994) (internal quotation marks omitted). As the

Supreme Court explained, its “cases do not support the proposition that every action by the

President, or by another executive official, in excess of his statutory authority is ipso facto

in violation of the Constitution.” Id. at 472. “On the contrary, [the Court] ha[s] often

distinguished between claims of constitutional violations and claims that an official has

acted in excess of his statutory authority,” and its precedent repeatedly “specif[ies]

unconstitutional and ultra vires conduct as separate categories.” Id. “[I]f every claim

alleging that the President exceeded his statutory authority were considered a constitutional

claim,” that “distinction” would be “eviscerat[ed].” Id. at 474. Relevant here, the Court

ultimately held that “claims simply alleging that the President has exceeded his statutory

authority are not ‘constitutional’ claims” freely reviewable at equity but “statutory one[s]”

subject to ultra vires review. Id. at 473–474; cf. Armstrong v. Exceptional Child Ctr., Inc.,

575 U.S. 320, 324–329 (2015) (refusing to treat a claim that a State violated a federal

statute as a constitutional one arising under the Supremacy Clause and instead treating the

claim as statutory and finding that Congress foreclosed an implied equitable cause of

action).

Here, both of Plaintiffs’ constitutional claims assert that because executive officials

and agencies violated statutes, they also violated the Constitution. Plaintiffs’ separation of

powers claim turns on the allegation that the Government’s actions “directly contravene[d]

Congress’s directives in the IRA, IIJA, and other statutes to carry out and fund the statutory

programs at issue in this case.” J.A. 139 (emphasis added); see also Sustainability Inst.,

784 F. Supp. 3d at 875 (“Plaintiffs’ nonstatutory review claims are based on the argument

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that Defendants[] have failed to faithfully execute[] the laws . . . .” (internal quotation

marks omitted)). Similarly, Plaintiffs’ Presentment Clauses claim is premised on the idea

that the Government’s actions would “terminate or modify parts of the IRA or IIJA and

other relevant statutes after they were passed by Congress and signed by the President.”

J.A. 140 (emphasis added) (internal quotation marks and brackets omitted); see also

Sustainability Inst., 784 F. Supp. 3d at 875.

At their core, both claims “simply alleg[e] that the [Government] has exceeded [its]

statutory authority.” Dalton, 511 U.S. at 473. The claims are therefore “statutory one[s].”

Id. at 474; accord Glob. Health Council v. Trump, 153 F.4th 1, 13 (D.C. Cir. 2025) (“Here,

the grantees assert a non-statutory right to vindicate separation-of-powers principles but

they are foreclosed from doing so by Dalton v. Specter.” (citation omitted)).

Plaintiffs’ attempts to avoid Dalton are unavailing. First, Plaintiffs assert that they

raise “the type of constitutional claim specifically sanctioned by Dalton,” Resp. Br. 31, i.e.,

where the Executive acts in the “absence of any statutory authority” whatsoever, Dalton,

511 U.S. at 473 (discussing Youngstown Sheet & Tube Co. v. Sawyer, 343 U.S. 579 (1952)).

That is demonstrably incorrect. Congress gave the Executive authority to issue grants

under the various statutes at issue here, and in their constitutional claims Plaintiffs

complain that the Executive “directly contravene[d] Congress’s directives in [those]

statutes” by freezing funds and cancelling grants. J.A. 139. Those alleged statutory

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violations are the predicate for Plaintiffs’ constitutional claims because without the

appropriations statutes there could be no improper withholding of funds. 10

Second, Plaintiffs contend that Dalton rested on the conclusion that the statute at

issue there committed the relevant decision to the President’s discretion. But Dalton

contained multiple distinct rulings, and Plaintiffs’ argument conflates them. See Dalton,

511 U.S. at 476–477 (summarizing the Court’s four holdings); Glob. Health Council, 153

F.4th at 16–17 (distinguishing between Dalton’s holdings). As explained above, the

Supreme Court first held that nonstatutory constitutional review was unavailable for the

plaintiffs’ claim that the President exceeded his statutory authority because the claim was

statutory, not constitutional. See Dalton, 511 U.S. at 472–474. The Court then separately

considered whether ultra vires review was available and concluded it was not because the

statute at issue did not limit the President’s discretion. See id. at 474–476; see Nuclear

Regul. Comm’n, 145 S. Ct. at 1776 (explaining the requirements of ultra vires review).

Plaintiffs focus on this second holding, but it is the first that is relevant here. And nothing

about the second holding narrowed the Court’s prior conclusion that plaintiffs cannot avoid

the limits of ultra vires review by arguing that executive officials’ statutory violations

implicate the separation of powers. We therefore reject Plaintiffs’ attempts to do so here.

10

This case is also unlike Free Enterprise Fund v. Public Company Accounting

Oversight Board, 561 U.S. 477 (2010), and Collins v. Yellen, 141 S. Ct. 1761 (2021), where

the plaintiffs challenged the constitutionality of federal statutes on separation-of-powers

grounds. Plaintiffs here do not contest the constitutionality of the relevant statutes; rather,

they seek to enforce them.

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2.

Because Plaintiffs’ claims are statutory, they must stay within “the painstakingly

delineated procedural boundaries” of “nonstatutory ultra vires review.” Nuclear Regul.

Comm’n, 145 S. Ct. at 1775–1776 (internal quotation marks omitted). As mentioned

above, one of these boundaries is that Plaintiffs must show that the Government “has taken

action entirely in excess of its delegated powers and contrary to a specific prohibition in a

statute.” Id. at 1776 (internal quotation marks omitted). Thus far, they have failed to do

so.

The district court construed Plaintiffs’ claims as “alleging that the freezing and/or

terminating of their grants violated their rights.” Sustainability Inst., 784 F. Supp. 3d at

868; see also id. at 875 (discussing “Plaintiffs’ claim that the freezing and/or termination

of the 32 grants constituted a violation of the . . . Defendants[’] duty to ‘faithfully

execute[]’ the laws of the United States” (quoting U.S. Const. art. II, § 3)). Accordingly,

the district court preliminarily enjoined the Government “from freezing and/or terminating

Grants 1–26 and 33–38 and direct[ed] that Plaintiffs[’] access to funding for these grants

be immediately restored.” Id. at 878. In ordering that Plaintiffs’ specific grants be restored,

the district court must have implicitly found that the IRA, IIJA, and other relevant statutes

mandated that Plaintiffs’ grants be funded.

The problem, however, is that Plaintiffs have identified no statute “specific[ally]

prohibit[ing]” the Government from freezing or terminating their grants. Nuclear Regul.

Comm’n, 145 S. Ct. at 1776 (internal quotation marks and emphasis omitted). The

appropriations statutes cited by Plaintiffs appropriate funds for particular programs and

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goals. 11 But none of them purport to tell the Government that it must contract specifically

with Plaintiffs. Cf. Lincoln v. Vigil, 508 U.S. 182, 192 (1993) (explaining that “the very

point of a lump-sum appropriation is to give an agency the capacity to adapt to changing

circumstances and meet its statutory responsibilities in what it sees as the most effective or

desirable way”). Absent a statute specifically prohibiting the Government from freezing

or terminating Plaintiffs’ grants, the district court erred in finding that the Government

likely acted ultra vires in freezing or terminating those grants. See Nuclear Regul. Comm’n,

145 S. Ct. at 1776. It follows that the court’s awarded remedy—“direct[ing] that

Plaintiffs[’] access to funding for [their] grants be immediately restored”—was also error.

Sustainability Inst., 784 F. Supp. 3d at 878.

Plaintiffs offer a couple of arguments in response, neither of which changes our

analysis. First, Plaintiffs stress that the Government terminated their grants precisely

because the Government disagreed with the goals set by the appropriations statutes funding

the grants. See id. at 875 (finding that Plaintiffs’ grants were frozen or terminated “because

they were funded by mandatory congressional legislation that [the Government] do[es] not

11

See, e.g., 42 U.S.C. § 7438(a)(1), (b)(1) (appropriating $2.8 billion that the EPA

Administrator “shall use” to “carry out” listed activities that “benefit disadvantaged

communities”); IRA § 21001(a)(1)(A), (B)(iii), 136 Stat. at 2015–2016 (appropriating over

$8 billion for the Department of Agriculture “to carry out . . . the environmental quality

incentives program,” which sought to fund “agricultural conservation practices or

enhancements” that the Secretary of Agriculture concluded would achieve certain results);

IIJA § 601(1)(B), 135 Stat. at 1396 (appropriating $1.96 billion for “‘Environmental

Programs and Management’” and directing that $238 million “shall be for Chesapeake

Bay”); American Rescue Plan Act of 2021 § 1006(b)(1), 135 Stat. at 13 (appropriating

funds that the Secretary of Agriculture “shall use” to benefit “socially disadvantaged

farmers, ranchers, or forest landowners, or other members of socially disadvantaged

groups”); see also J.A. 2125–2139.

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favor”). But even accepting that as true, Plaintiffs still fail to identify a statute that

specifically prohibits the Government from freezing or terminating their grants. At best,

the appropriations statutes may require that certain funding be available for obligation. The

statutes do not require, however, that Plaintiffs themselves receive any funds.

Second, and relatedly, Plaintiffs claim that the Government “cancel[led] entire grant

programs wholesale,” Resp. Br. 48, and confirmed that it “will not spend the money

Congress appropriated at all,” id. at 23. The theory seems to be that by appropriating funds

for certain programs, Congress specifically mandated—in a manner sufficient to trigger

ultra vires review—that those programs remain funded. Cf., e.g., In re Aiken Cnty., 725

F.3d 255, 260 (D.C. Cir. 2013) (“[W]here previously appropriated money is available for

an agency to perform a statutorily mandated activity, we see no basis for a court to excuse

the agency from that statutory mandate.”). And by declining to fund the specified

programs, Plaintiffs allege, the Government has violated a specific statutory prohibition.

See Nuclear Regul. Comm’n, 145 S. Ct. at 1776.

On this record, we express no view on Plaintiffs’ “program cancellation” theory.

Even assuming that the appropriation of funds for a certain program equates, for purposes

of ultra vires review, to a specific prohibition on terminating that program—a question the

district court should consider in the first instance on remand—the district court did not find

that the Government “cancel[led] entire grant programs wholesale,” Resp. Br. 48, with the

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intent never to re-obligate the funding, see Sustainability Inst., 784 F. Supp. 3d 861.12 And

we decline to make that finding in the first instance. See Core Commc’ns, Inc. v. Verizon

Md. LLC, 744 F.3d 310, 324 (4th Cir. 2014) (“[I]t is axiomatic that appellate courts do not

make factual findings.” (internal quotation marks and ellipsis omitted)). Further,

evaluating whether the cancellation of a specific program is subject to ultra vires review

requires first determining whether a statute mandates that specific program. See Nuclear

Regul. Comm’n, 145 S. Ct. at 1776; cf. Lincoln, 508 U.S. at 193–194. But the district court

did not undertake that program-by-program analysis here. See Sustainability Inst., 784 F.

Supp. 3d 861. At bottom, the district court focused on the freeze and termination of

Plaintiffs’ particular grants—not the termination of entire programs. We therefore decline

to pass on the merits of Plaintiffs’ “program cancellation” theory or what the appropriate

relief would be in the event that the Government did indeed cancel statutorily mandated

programs.

12

The district court noted that certain agencies “issued directives that all spending

of funds related to the IRA and IIJA be immediately paused.” Sustainability Inst., 784 F.

Supp. 3d at 869; see also id. (noting “mass freezing”); id. at 876 (mentioning, in passing,

“[i]ndefinitely pausing funding”). But pausing funding pending review is not the same as

the complete, permanent termination of grant programs that Plaintiffs claim violates a

specific statutory prohibition. Further, that Plaintiffs’ grants were frozen or terminated

cannot, without more, show that the Government cancelled entire programs. Nor can the

fact that “not one [document] show[ed] any individualized review of decisions to freeze or

terminate grants of the Plaintiffs in this action.” Id. at 870 (emphasis added). Lastly, we

note that the district court acknowledged the Government’s representation that it “had

resumed the funding for 14 of the 38 grants at issue in this litigation, terminated four grants,

and [was] processing the termination of six other grants.” Id. Given the varying statuses

of Plaintiffs’ grants, we are wary to conclude in the first instance that the Government

terminated entire grant programs.

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In sum, we find that Plaintiffs’ nonstatutory review claims—as the district court

understood them—likely do not overcome the “strict[] limit[ations]” imposed on such

claims. Nuclear Regul. Comm’n, 145 S. Ct. at 1775. The preliminary injunction based on

those claims is therefore vacated.

IV.

For these reasons, we vacate the district court’s permanent and preliminary

injunctions and remand for further proceedings consistent with this opinion.13

VACATED AND REMANDED

13

In its principal order, the district court noted that it had previously “entered an

order directing Defendants ‘not to subsequently freeze or terminate [certain] grants without

notice to the Court and authorization from the Court that the freezing and/or termination

may proceed.’” Sustainability Inst., 784 F. Supp. 3d at 868 n.2 (quoting Sustainability

Inst., 2025 WL 1486978, at *9). The district court then stated that the earlier order (from

April 29, 2025) would “remain[] in effect until modified or rescinded by this Court or an

appellate court.” Id. For the reasons given above, we also vacate the April 29 order to the

extent it enjoins the Government from freezing or terminating Plaintiffs’ grants.

31