A federal judge ordered the Department of Health and Human Services to release about $65 million that had been withheld for legal services representing unaccompanied immigrant children. The administration released the funds roughly 30 minutes after the court deadline, with payments expected to begin the following Monday. Acacia Center for Justice, the prior prime contractor, did not renew its HHS contract after the administration sought a clause requiring disclosure of confidential client data; its contract expired July 31, 2026. HHS instead awarded a $150 million contract to the Burke Law Group, a small Texas firm with limited immigration expertise.
Federal Judge Orders Release of $65M for Legal Aid to Unaccompanied Immigrant Children
NEW YORK, NEW YORK - JULY 31: Children wait outside of an immigration court at the Jacob K. Javits Federal Building on July 31, 2026 in New York City. More than 1,400 migrant children across New York, including more than 700 in New York City, are set to lose legal representation as a $200 million federal contract with the Acacia Center for Justice expires. The nonprofit oversees legal services for unaccompanied migrant children and estimates the funding loss will affect more than 24,000 children nationwide. Michael M. Santiago via Getty Images
A federal judge in California has ordered the Trump administration to disburse roughly $65 million in congressionally funded payments that had been withheld for legal services representing unaccompanied immigrant children facing deportation.
U.S. District Judge Araceli Martinez-Olguin directed the Department of Health and Human Services (HHS) to release the money owed to several nonprofit legal providers by 12 p.m. PT on Friday. According to the nonprofits, the administration released the funds about 30 minutes after the court-imposed deadline and said payments would begin going out the following Monday.
"We are closely monitoring to make sure that happens," Bilal Askaryar, spokesperson for the Acacia Center for Justice, told the Los Angeles Times.
Court filings show the organizations had been owed the money since December 2025. The Acacia Center for Justice, which had been the prime contractor responsible for distributing payments to subcontracting legal providers, praised the court's decision in a press release.
"The court has affirmed what we have said from the beginning: Congress funded these legal services, the law calls for them, and no administration gets to weaponize levers of government to attempt to override legislation and strip children of effective access to their lawyers," the Acacia Center for Justice said.
Acacia did not renew its HHS contract after the administration proposed a clause that would have required legal service providers to disclose confidential client information to the government. That contract expired on July 31, 2026. Separately, HHS awarded a roughly $150 million contract to the Burke Law Group, a small Texas-based firm with documented ties to the administration; reporting indicates only two of the firm's 24 attorneys specialize in immigration law.
The potential impact of the funding dispute has been significant: Acacia has estimated the funding gap could affect more than 24,000 children nationwide. In New York alone, reporting indicated more than 1,400 migrant children — including over 700 in New York City — faced the prospect of losing legal representation when Acacia's prior contract ended.
The court order came after months of unpaid invoices to organizations representing unaccompanied minors and a legal challenge over whether the administration could withhold congressionally appropriated funds tied to statutorily required legal services. With the judge's ruling, HHS must release the withheld funds so providers can be paid; nonprofits say they will continue to monitor disbursement and push for steady funding to ensure effective legal representation for children in deportation proceedings.
What Happens Next: Nonprofits and subcontractors will track actual payments after the funds' release, and legal advocates may continue to challenge any administrative efforts that would condition funding on disclosure of confidential client information. The dispute highlights ongoing tensions over how legal services for unaccompanied children are contracted and administered.
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