Nonprofit Sued DHS Over Terminated Grant
The Portland-based organization claims the federal agency breached its contract for citizenship classes.
Updated on Sept. 28, 2026 in Immigration
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Immigration Counseling Service filed a lawsuit against the Department of Homeland Security following the abrupt termination of a $400,000 grant. The nonprofit alleges that the agency ended the funding for rural Oregon citizenship programs without review or explanation.
Why it matters
The legal action highlights a dispute over federal grant management and the potential disruption of essential services for lawful permanent residents. By taking the matter to court, the nonprofit seeks to address what it characterizes as a breach of contract regarding its awarded funding.
The lawsuit involves a $400,000 federal grant awarded on September 30, 2024, to support citizenship classes for residents in rural Oregon. The case is currently pending in the US Court of Federal Claims after the grant was terminated in early 2025.
The players
Immigration Counseling Service
This Portland-based nonprofit provides legal services and education to immigrants seeking citizenship.
Department of Homeland Security
This federal agency is responsible for national security and oversees the administration of various immigration-related grant programs.
The details
The complaint alleges that the Department of Homeland Security ended the contract without providing a justification or evaluating the nonprofit's actual performance. This termination disrupted the provision of citizenship classes intended for lawful permanent residents across rural parts of Oregon.
Timeline
September 30, 2024: The Department of Homeland Security awarded the $400,000 grant to the nonprofit.
Early 2025: The agency froze and subsequently terminated the grant award.
September 25, 2026: Immigration Counseling Service filed its complaint in the US Court of Federal Claims.
Political Context
The lawsuit challenges whether the agency adhered to the Administrative Procedure Act by revoking funding without a formal review process. This litigation signals potential pushback against federal agency discretion in modifying or rescinding established grant contracts.
Local residents in rural Oregon currently face the loss of accessible citizenship classes that were previously funded by the federal grant. The lawsuit could determine if these services will be reinstated or if the nonprofit must find alternative funding sources.
The takeaway
When nonprofits rely on federal grants to provide public services, contractual disputes can leave vulnerable residents without essential support systems. Organizations and individuals should monitor these court proceedings to understand the long-term impacts on local program funding.
Further reading
For more background on regional policy debates, visit Immigration.
Source note: This article includes information reported by Bloomberglaw.
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