American Council of Learned Societies v. McDonald (Grants appeal 2025)
Overview
Overview
The government appealed Judge McMahon's order granting a preliminary injunction which prevents the mass cancellation of grants awarded to putative class members.
The Issue
Issue
Whether the government's mass cancellation of grants awarded by the National Endowment for the Humanities violates the Administrative Procedure Act and whether the preliminary injunction preventing such cancellations should be upheld.
The Rules
Rule
Under the Administrative Procedure Act, agency action must not be arbitrary or capricious and must be supported by substantial evidence. A preliminary injunction requires: (1) likelihood of success on the merits, (2) irreparable harm to the movant, (3) balance of equities favoring the movant, and (4) that the public interest is served. Winter v. Natural Resources Defense Council, 555 U.S. 7 (2008).
The Application
Analysis
Judge McMahon found that the plaintiffs, grant recipients and the Council, demonstrated a likely APA violation and would suffer irreparable harm from abrupt loss of committed funding. The court determined that maintaining the status quo during judicial review serves the public interest in ensuring agency compliance with administrative law.
The Conclusion
Conclusion
The Second Circuit is reviewing the preliminary injunction order on appeal. The injunction remains in effect, blocking implementation of the mass grant cancellations pending resolution of the appeal.
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