- A federal judge ordered the immediate release of sixty-five million dollars in withheld legal aid fees.
- Nonprofit organizations had depleted their financial reserves after payments were frozen in November twenty twenty-five.
- The court mandated the payment to protect unaccompanied migrant children facing deportation proceedings in immigration court.
A federal judge ordered the Trump administration to release about $65 million owed to nonprofit lawyers representing unaccompanied migrant children in deportation proceedings, setting a payment deadline that providers said the government met Friday.
U.S. District Judge Araceli Martinez-Olguín issued the order on August 6, 2026, directing the U.S. Department of Health and Human Services to release the unpaid fees by noon on August 7. She also required a court report by August 13.
Legal service providers said the government released the funds by the afternoon of August 7. Organizations expected the money to reach them by Monday, August 10.
The order followed months of conflict over confidential records. HHS stopped payments in November after providers refused to provide sensitive information about their child clients, citing attorney-client privilege.
The case, Community Legal Services in East Palo Alto v. HHS, began in March 2025 after the administration moved to end the legal-aid arrangement. It is docketed as 3:25-cv-02847.
The Acacia Center for Justice said the government withheld money for completed work to obtain information it had no right to demand.
“The government is withholding payment for work that has already been performed in order to extract confidential information about kids, information the government has no right to.”
The unpaid invoices covered legal services performed since December 2025. HHS sought what it called “granular data” and “clinical assessments” to verify the work, while providers described the requested disclosures as unethical and confidential.
The payment dispute strained a network serving more than 24,000 children
The contract supporting the legal-services network expired on July 31, 2026. It covered about 90 nonprofit organizations and more than 24,000 unaccompanied minors across the country.
Some providers drew down reserves. The Amica Center for Immigrant Rights said it was owed more than $2.5 million for work already completed, much of it involving children in Maryland.
Michael Lukens, the center’s executive director, said the payment would restore funds used during the freeze.
“The government owes us over $2.5 million for work already done. We are able to now replenish those funds that we have been pulling down from our reserves.”
Estrella del Paso reported that it was owed $765,000 and was nearing collapse. The organizations continued representing children while waiting for reimbursement.
Judge Martinez-Olguín linked the government’s obligation to the Trafficking Victims Protection Reauthorization Act of 2008. She said the law requires the government to continue providing counsel for unaccompanied minors.
The judge also criticized the government’s position in her four-page order.
“Defendants tie themselves in a knot — despite their insistence that this court lacks jurisdiction over the government's contractual disputes, they now attempt to utilize a contractual dispute as a shield for their failure to abide by the terms of the preliminary injunction.”
A $150 million award will replace the expired legal-aid arrangement
HHS awarded a $150 million “single source cooperative agreement” to the Burke Law Group, a Houston-based firm with ties to the administration. The agreement has a start date of August 15, 2026.
The award bypassed competitive bidding. Its listed services include “legal orientation, legal consultation, and attorney-of-record representation services for eligible unaccompanied alien children” during immigration proceedings.
Marcella Burke founded the firm. She is a former Trump appointee at the Environmental Protection Agency and the Department of the Interior.
The firm lists only two attorneys with immigration experience, and advocates questioned whether it has specialized experience representing children in immigration proceedings. The contract’s selection drew congressional scrutiny.
Rep. Joaquin Castro, D-Texas, called for the award to be canceled and investigated.
“The Trump Administration should cancel this award and choose qualified legal providers. There must also be an independent investigation into how this firm was selected.”
The new agreement starts shortly after the old network’s contract expired. Its launch will occur as nonprofit organizations work to restore reserves depleted by the payment freeze.
Advocates warn that children could appear without lawyers
Laura Flores-Perilla, a staff attorney at the Justice Action Center, said the fight over funding could affect children’s ability to defend themselves in immigration court.
“The fastest way to deport more children is to make sure fewer children have lawyers. That is what is at stake here.”
Advocates said thousands of children, including some as young as infants, had been forced to attend deportation proceedings without attorneys. They also warned that the government’s requests for unredacted medical and legal records exposed vulnerable, often traumatized children to privacy risks.
As of June 2026, 57% of children with pending removal cases lacked legal representation, a figure estimated at approximately 425,000 children. That broader number includes children beyond those served through the Acacia network.
HHS defended its stated objective. Emily Hilliard, the department’s press secretary, said the Office of Refugee Resettlement remained committed to providing lawyers.
“ORR [Office of Refugee Resettlement] is committed to ensuring every UAC [Unaccompanied Alien Child] has legal representation in immigration court.”
The dispute has placed the transition between contracts under close scrutiny. The court’s August 13 report deadline will follow the payment deadline and the expected arrival of funds at nonprofit organizations.
Robert F. Kennedy Jr. is the HHS secretary, and Angie Salazar is the acting director of the Office of Refugee Resettlement. The replacement agreement is scheduled to begin on August 15, 2026, as the legal system continues handling cases involving more than 24,000 minors.
This article provides general information and is not legal advice. Consult a qualified immigration attorney about your specific case.
