Nonprofit legal aid providers representing unaccompanied immigrant children have asked U.S. District Judge Araceli Martinez-Olguín to hold the Department of Health and Human Services in contempt of court for violating her injunction that blocked an effort to defund legal services for unaccompanied children. The judge has set a hearing for July 16 and gave HHS until July 10 to file a written response to the contempt motion.
What changed
Estrella del Paso, a major provider of legal services to unaccompanied immigrant children, says more than $765,000 in delayed federal reimbursements has left the nonprofit on the brink of closure despite a court order requiring the funding. HHS provided reimbursements to legal aid providers in the months after the preliminary injunction in April 2025, but stopped doing so after December 2025. In a June email to attorneys for the nonprofits, Justice Department attorney Michael Celone said HHS was requiring additional documentation on legal invoices before releasing payment.
The plaintiffs filed a motion July 1 seeking a hearing on whether HHS should be held in contempt for violating the April 2025 injunction. Estrella del Paso and 10 other legal aid organizations are now asking the court to enforce the judge’s existing order.
Why it matters
Martinez-Olguín ruled that funding for legal services for children who cross the border without a parent or guardian is required by the Trafficking Victims Protection Reauthorization Act of 2008, which requires the government to ensure that unaccompanied immigrant minors receive counsel in immigration court. Unaccompanied children are the only people who receive government funding for legal assistance in immigration court.
If Estrella del Paso and similar organizations close due to non-payment, you will lose critical referral partners and thousands of unaccompanied minors will lose access to federally mandated representation. The government’s contract with legal service providers for unaccompanied children expires July 31, creating immediate urgency as the contempt hearing approaches.
The government’s shift to demanding “additional documentation” before reimbursement may signal a strategy to delay payment indefinitely. This tactic affects your cash-flow planning and staffing projections if you work with or refer to these organizations.
Way forward
- Monitor the July 16 hearing outcome closely. If the judge finds contempt, it may lead to sanctions or a mandated payment schedule that restores cash flow to providers.
- If you represent unaccompanied minors, verify your referral partner’s status. Contact Estrella del Paso or local legal aid agencies to confirm they can still take new cases and meet deadlines.
- Document all communication from HHS regarding documentation requirements or payment delays. These records may be relevant to future fee-waiver requests or complaints to the Office of Inspector General.
- Prepare for service disruption. If key providers close, identify pro bono resources or reconsider your representation model for unaccompanied minors in your jurisdiction.
Disclaimer
Fola Editorial is a software company, not a law firm, and this article does not constitute legal advice. Consult a licensed immigration attorney to discuss the implications of this case for your specific clients or practice. Verify all information against the source document linked above. Federal court orders and government policies can change without notice; check the Northern District of California docket and the agencies’ announcements for the latest developments.