On September 11, 2025, the United States District Court for the Western District of Washington preliminarily stopped the administration’s reinterpretation of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (“PRWORA”) nationwide. For more details, see our September 10, 2025 Client Alert.

The new decision concerns only the Head Start program, but it made some key findings.

First, the Court found HHS’s new interpretation was procedurally deficient as it should have been the subject of notice and comment rulemaking under the rulemaking provisions of both the Administrative Procedure Act and the Head Start Act.

Second, the Court found the interpretation was contrary to law for a few reasons including: (i) preschool and K-12 education programs are explicitly not part of the statutory definition of “Federal Public Benefit” in PRWORA and (ii) the Head Start Act contains specific provisions on eligibility, provisions that have been amended several times since the passage of PRWORA in 1996 and therefore take precedence over PRWORA.

Third, the Court found the interpretation was arbitrary and capricious in that it failed to consider the fact that Head Start agencies have relied for almost 30 years on the Government’s now rescinded interpretation that PRWORA does not extend to Head Start.  In our opinion, the most impactful part of the Court’s ruling is its finding that, because many Head Start programs, particularly migrant and seasonal programs, cross state lines, a nationwide injunction was appropriate and warranted in order to give the plaintiffs “complete relief.”  Accordingly, unless overturned on appeal, HHS’s recent reinterpretation of PRWORA cannot be applied to any Head Start program, anywhere in the country.

The Court’s decision was a preliminary injunction, meaning it is a temporary injunction that will stay in place until the case is fully and finally decided or until lifted by the District Court or a higher court. This procedural posture means there will be more rulings on these issues in the months to come.

Feldesman attorneys are closely following the lawsuits challenging the Government’s new interpretation of “federal public benefit” under PRWORA and what it could mean for Head Start programs. If you have questions, please contact Ted Waters.

Stay current by joining Feldesman’s Monthly Briefings for Federal Grantees: Key Updates and Developments webinar. The next sessions will take place on September 16, 2025 at 1 p.m. ET and October 14, 2025 at 1 p.m. ET.