CORRECTION: the District of Oregon injunction reaches the Kennedy Declaration, not the CoP rulemaking

OtherCOURT

Date
Actor
U.S. District Court for the District of Oregon (Kasubhai, J.)
Agency
Federal court (COURT)
Type
Other (court order constraining implementation)
Section
2026 DEVELOPMENTS SWEEP (JANUARY–AUGUST 2026)

Summary

State of Oregon v. Kennedy, No. 6:25-cv-02409-MTK, vacated and permanently enjoined enforcement of the December 18, 2025 Kennedy Declaration — a sub-regulatory standard-of-care declaration backed by HHS-OIG exclusion threats — as in excess of statutory authority and issued without required procedure. The judgment (ECF 94, April 18, 2026) enjoins reliance on that Declaration "or any materially similar policy" as against providers in the plaintiff States. It does not enjoin the hospital Conditions of Participation rulemaking, and the plaintiff States never asked it to; the 49-page opinion contains no substantive reference to 42 CFR 482 or the CoP proposal. The States cited the two proper NPRMs only as a favorable contrast, arguing the Declaration should likewise have gone through notice and comment. Plaintiffs were 20 states plus the District of Columbia (21 AG-represented jurisdictions), with Pennsylvania's Governor suing separately.

Status

Judgment stands. A defense motion to amend the judgment (ECF 96, May 18, 2026) was fully briefed June 29, 2026 and remains undecided; no notice of appeal on the docket. Defendants filed a notice of compliance April 24, 2026. Update, Sept. 23, 2026: On Sept. 17, 2026, the court (Kasubhai, J.) denied the government's motion to amend the judgment (D. Or. No. 6:25-cv-02409, ECF 96; order at ECF 105), holding defendants failed to identify any clear error or other basis under Rule 59(e); the April 18, 2026 declaratory judgment vacating the Kennedy Declaration stands as originally entered, and no notice of appeal has been filed.

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