Kansas v. USA (DACA ACA) - Court of Appeals

This is an appeal of a December 9, 2024 district court decision preliminarily enjoining (blocking) the federal government from enforcing a rule against the 19 plaintiff states; in that rule (which took effect on November 1, 2024), the Department of Health and Human Services clarified that recipients of deferred action under the Deferred Action for Childhood Arrivals (DACA) program–like others with deferred action–are eligible to purchase health insurance through an Affordable Care Act (ACA) exchange. Judge Traynor of the District of North Dakota granted the states’ preliminary injunction motion, holding that they have standing and that the rule conflicts with federal law.

Shortly after appealing Judge Traynor’s preliminary injunction, the federal government asked the Eighth Circuit to stay (pause) that injunction pending the full briefing of the appeal. On December 16, 2024, the Eighth Circuit issued an “administrative” stay of Judge Traynor’s injunction pending full consideration of the motion to stay, but then vacated that administrative stay on December 23, 2024, while also denying the motion to stay by a 2-1 vote. In its accompanying opinion, the panel majority said that even assuming without deciding that the federal government would prevail on appeal, it failed to show that the preliminary injunction causes irreparable harm. In dissent, Judge Kelly said that North Dakota lacks standing and so the preliminary injunction should be vacated.

After the States filed their brief, the case was held in abeyance at the request of the federal government, on the likelihood that the Trump Administration would rescind the challenged rule. In September 2025, the parties filed a stipulation in which they agreed the appeal should be dismissed.