On August 12, 2025, the court in State of New York, et al., v. USDOJ, et al., 25-cv-00345 (D. R.I.), entered an updated “Stipulation and Joint Proposal for Briefing Schedule” stating that the Government agreed to temporarily stay (or pause) any enforcement and application relating to its new interpretation of “Federal public benefit” under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). As we previously reported, in early July, a handful of federal agencies announced a significant policy change that set forth a revised interpretation of the term “Federal public benefit” as used in Title IV of PRWORA. The notices released at that time provided that any programs serving individuals, households and families would be subject to heightened eligibility restrictions, effective immediately.

The stipulation means that, regardless of the outcome of the pending litigation (including any appeal), the Government cannot enforce or apply the PRWORA Notices listed below (including any interpretation of PRWORA expressed in those Notices) in Plaintiff States, which include New York, Washington, Rhode Island, Arizona, California, Colorado, Connecticut, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Vermont and Wisconsin through September 10, 2025.

The stipulation references the following Notices:

• U.S. Department of Justice, “Revised Specification Pursuant to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996,” 90 Fed. Reg. 32,023 (July 16, 2025);
• U.S. Department of Health and Human Services (HHS), “Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA); Interpretation of ‘Federal Public Benefit,’” 90 Fed. Reg. 31,232 (July 14, 2025);
• U.S. Department of Education, “Clarification of Federal Public Benefits under the Personal Responsibility and Work Opportunity Reconciliation Act,” 90 Fed. Reg. 30,896 (July 11, 2025); and
• U.S. Department of Labor, “Training and Employment Guidance Letter No. 10-23, Change 2” (July 10, 2025).

While the stipulation remains in effect, the litigation will continue with argument scheduled to take place on August 20, 2025.

In addition to the stipulation entered in the Rhode Island case, on its website, HHS stated more broadly that it “agreed to stay enforcement and application through September 10, 2025” of its PRWORA notice–not including a limitation only to the states involved in the pending litigation. HHS further stated that “This period will permit [HHS] to consider, as appropriate, whether to provide additional information about the HHS PRWORA Notice.”

For updates, join Feldesman’s Monthly Briefings for Federal Grantees: Key Updates and Developments webinar. The next sessions in this series will be held on August 19, 2025 at 1 p.m. ET and September 16, 2025 at 1 p.m. ET.

To learn what the updated interpretation of “Federal public benefit” means for behavioral health providers, attend Feldesman’s upcoming webinar, New Restrictions on Providing Federal Public Benefits to Noncitizens: Immediate Impacts for Behavioral Health Providers on August 20, 2025 at 3 p.m. ET.