The U.S. Department of Justice has asked a federal judge in North Dakota to halt proceedings in a high-profile challenge to a Biden administration rule that expanded health coverage access for DACA recipients — citing the ongoing government shutdown and lack of congressional funding.

In a motion filed Tuesday, the DOJ said that the Sept. 30 lapse in federal appropriations has left most of its workforce unable to operate except in situations involving “emergencies involving the safety of human life or the protection of property.”

“The department does not know when such funding will be restored by Congress,” the motion stated, urging the court to pause all litigation deadlines until the shutdown ends. The unopposed request comes just days before an Oct. 27 status conference scheduled in the case.

States Challenge DACA Rule Allowing Access to Health Coverage

The dispute stems from a Biden administration regulation that redefined “lawfully present” under the Affordable Care Act (ACA) to include individuals protected by the Deferred Action for Childhood Arrivals (DACA) program. This rule, announced earlier this year, aimed to allow DACA recipients — often called “Dreamers” — to purchase health insurance through ACA marketplaces.

However, Kansas and a coalition of Republican-led states filed suit, arguing that the administration overstepped its authority by granting federal benefits to individuals without lawful immigration status. The states claim the policy burdens taxpayers and undermines immigration law.

Regulation Temporarily Blocked, Appeal Pending

The DOJ emphasized that pausing the case would not prejudice either side, since U.S. District Judge Daniel M. Traynor had already temporarily blocked the rule in December. The administration later amended the regulations in June — while an appeal to the Eighth Circuit was still pending — effectively suspending the rule for now.

With the rule already on hold, government lawyers argue that continuing the litigation during a shutdown would waste resources and violate funding laws.

Representation and Next Steps

The federal government is represented by Brett A. Shumate, Eric B. Beckenhauer, and R. Charlie Merritt of the DOJ’s Civil Division.
Kansas and the other plaintiff states are represented by their respective state attorneys general.

Representatives for both sides did not immediately respond to requests for comment on Wednesday.

As the DOJ DACA Health Suit stalls amid Washington’s fiscal standoff, the fate of health care access for thousands of Dreamers remains in legal limbo — suspended between a courtroom and a Congress at odds.