See the latest Client Alert from August 13, 2025 here.

Government Agrees to Pause Implementation of its New Interpretation of “Federal public benefit” in Certain States Until September 2025

In additional litigation developments related to the Government’s interpretation of “Federal public benefit” in Title IV of PRWORA, 8 U.S.C. § 1611, the parties in State of New York, et al., v. USDOJ, et al., 25-cv-00345 (D. R.I.), filed a “Stipulation and Joint Proposal for Briefing Schedule” today (July 25, 2025) stating that the Government agreed to stay (or pause) any enforcement and application of the challenged Notices (and their contents) 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 3, 2025. 

The proposed stipulation specifically referenced:

• 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, “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).

In addition, the Government also agreed that regardless of the outcome of the pending litigation in State of New York, et al., v. USDOJ, et al., 25-cv-00345 (D. R.I.), including any appeal, they will never enforce or in any way apply the PRWORA Notices listed above, including the interpretations of PRWORA expressed in those Notices, related to:

• conduct occurring in Plaintiff States prior to September 4, 2025;
• funds expended in Plaintiff States prior to September 4, 2025; or
• any other actions taken in reliance on the aforementioned stipulation prior to September 4, 2025.

The parties indicated that the term “States” includes the States and their subdivisions and instrumentalities. The parties requested that the Court schedule all briefing to be completed before a proposed argument date of August 20, 2025. As of 6 p.m. ET on July 25, 2025, the Court has not issued an order endorsing this proposed stipulation.

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See more at our Client Alert “Client Alert: Court Filing Clarifies Government’s Interpretation of “Federal Public Benefit”” from July 25, 2025.