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Justice Department Asks Supreme Court to Limit Courts' Power to Set Aside Federal Rules Nationwide Under the APA

In a petition filed Oct. 14 in HHS v. Texas Medical Association, the government argues that a court's relief under the Administrative Procedure Act should cover only the parties who sued. Defenders of the current practice call nationwide 'vacatur' a long-standing and necessary remedy.

How spun is the coverage?Coverage bias 3.3 / 10
3 sides analyzed16 sources cited

Nine words at the center of a Supreme Court petition

On Oct. 14, 2026, the Justice Department filed a 29-page petition at the Supreme Court. It's called HHS v. Texas Medical Association, No. 26-491[1][2]. The petition asks one narrow question. When a federal court finds an agency rule illegal, can it wipe that rule out for the whole country? And if so, when?

Solicitor General D. John Sauer says no, at least not as a matter of course. He writes that nothing in the law's "text, context, or history" gives courts "that 'new and far-reaching remedial power'"[1]. His fallback is softer. Even if nationwide relief is sometimes allowed, he argues, it shouldn't be the "default" remedy[4].

The petition does not ask whether the rules in this case were lawful. It asks only about the remedy[1][2].

A fight over two payment rules

The case began with the No Surprises Act, a law meant to stop surprise medical bills. Several challenges were later combined. The challengers were the Texas Medical Association, a hospital and four air ambulance companies. They attacked rules from the Departments of Health and Human Services, Labor and the Treasury[1].

The rules explain how to calculate the "qualifying payment amount." That's a benchmark. When an out-of-network provider and an insurer fight over a bill, arbitrators lean on it. A lower benchmark generally favors insurers.

On Aug. 11, 2026, the full Fifth Circuit held that two of those rules conflicted with the Act. It restored a lower court's order vacating them[6][7]. The court found the formula counted "ghost rates," meaning rates for services never provided. It also left out some bonus payments. Industry analysts say that pushed benchmarks down, in insurers' favor[7][15].

Money rides on the remedy. If the rules are vacated for everyone, higher benchmarks apply to every provider. If relief reaches only the plaintiffs, others may be left with the old formula[7][15]. For now, the rules stay vacated nationwide[6][7].

What "set aside" means

The dispute turns on a phrase in the Administrative Procedure Act (APA), the 1946 law that governs how agencies make rules. Section 706(2) tells courts to "hold unlawful and set aside" illegal agency action[5].

For decades, courts have read "set aside" to mean vacatur. Vacatur erases the rule. It no longer binds anyone, including people who never sued[5]. The government reads the words more narrowly. On its view, a court should simply refuse to apply the rule to the challengers[3][5].

Each reading has a practical logic. Challengers say a rule found illegal is illegal for everyone, because the court is ruling on the government's own act, not restraining a person. The government says the words tell a court what to do in the case in front of it. It says they don't create a power to cancel a rule nationwide.

The back door and the old road

Last year's decision in Trump v. CASA shapes the whole fight. In June 2025, the Supreme Court held that federal courts generally lack power to issue universal injunctions, which are orders blocking a policy everywhere. It did not decide whether the APA allows universal vacatur[8][16].

The government calls vacatur a back door to the same result. Its structural argument runs like this. A challenger can file in the district it expects to be friendliest. One win there ends the rule everywhere. Other courts never weigh in, and the government must win every case to keep its rule[9][8].

Defenders of vacatur say it's a different and much older remedy. Scholars have traced "set aside" to earlier law, where it meant annulling the act itself[13][14]. They also make a practical point. Without vacatur, every affected doctor, small business or state would need its own lawsuit. Small players often can't afford one.

Justice Kavanaugh added another point in 2024. Some people harmed by a rule aren't regulated by it directly. For them, vacatur may be the only workable relief[11]. CASA left class actions open as another route[8][16].

A Court already divided

The justices have written about this before, and they don't agree. In United States v. Texas in 2023, Justice Gorsuch wrote a concurrence in the judgment. Justice Thomas joined it, and Justice Barrett joined in part. It questioned whether the APA lets courts vacate agency action at all[10]. In 2024, Justice Kavanaugh wrote a concurrence in Corner Post defending vacatur[11].

Then there's Chief Justice Roberts. Critics of the petition lean on his words. In 2022, the Biden administration made a similar argument. Roberts called it "fairly radical." He joked that judges on the D.C. Circuit, the main court for agency cases, vacate rules "five times before breakfast." Kavanaugh called the argument "far-reaching"[3][5].

Those remarks are real. But they answered the Biden administration's 2022 version of the argument, not this petition[5]. That matters for the government's incentive too. Every administration wants to lose as little as possible when one court rules against it. Both the Biden and Trump Justice Departments have pressed this position, which suggests it follows the institution, not the party[3][5].

The Hill reports that the government needs one more vote. If the three liberal justices oppose it, it would need Roberts or Kavanaugh[3]. This is The Hill's count, and I couldn't confirm it independently.

Who is telling the story how

Coverage so far comes mostly from legal specialists and law firms. Searches turned up no major right-leaning or left-leaning national outlets, and no non-Western ones. That fits a petition the Court hasn't yet agreed to hear.

SCOTUSblog used neutral verbs and quoted the petition directly[1]. Law360 framed the case as a test of the judiciary's power to check executive agencies[4]. The Hill called the petition the administration's "next move to rein in judges' authority to block the president's agenda." It also noted the Biden-era origin of the argument[3].

The Hoosier Enquirer, a small Indiana outlet, ran the headline "One Judge, Whole Country." It described the request as closing "the back door," which is the government's own argument told as narration[9]. Sidley Austin, which represents the medical association, celebrated the August ruling as the physicians' "sixth" win[12]. Polsinelli's client alert repeated the court's view that the rules favored insurers, without the government's defense of the formula[7].

The Court hasn't acted on the petition. First it must decide whether to hear the case at all. If it does, the ruling would govern every future challenge to a federal rule, whichever party wrote the rule[1][16]. If it declines, vacatur stays the main route to nationwide relief after CASA.

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The Bias Ledger average rating 3.3

The same story, as framed by outlets across the spectrum, ordered least to most biased. The bias score (1 = straight, 10 = heavily spun) is an AI assessment of that framing — click an outlet to see its track record. The tell is the word choice or omission that reveals the angle.

OutletVantageBiasHow they frame itThe tell
SCOTUSblogU.S. center (legal specialist)1Trump administration asks justices to determine courts' ability to vacate federal agency actionsNeutral verbs ('asks,' 'determine'). It explains the No Surprises Act background and quotes the petition directly, with no characterization. Its only slip is calling the No Surprises Act 'a 2022 law'; 2022 is when its protections took effect.
Law360U.S. center (legal trade)2Trump Admin. Urges High Court To Curb APA Rule VacaturThe headline is straight. The body casts the case as a 'major test of the judiciary's authority to check executive agency power,' which puts it in checks-and-balances terms rather than the government's statutory-text terms.
The HillU.S. center3Trump administration asks Supreme Court to address nationwide rulingsCalls the petition the 'next move to rein in judges' authority to block the president's agenda' and says Roberts 'slapped it down.' It does include the Biden-era origin of the argument and a straight vote count.
PolsinelliU.S. law firm client alert (health-care industry audience)3En Banc Fifth Circuit Rejects Key QPA Rules in TMA IIIMostly descriptive. It repeats the court's view that the rules deflated benchmarks 'in favor of insurers' without giving the insurers' or government's defense of the formula.
Hoosier EnquirerU.S. regional digital outlet (orientation not established); framing tracks the administration5One Judge, Whole Country: Trump DOJ Asks SCOTUS to End Universal Agency VacaturThe headline adopts the government's 'one judge' framing. It describes the request as closing 'the back door' left open after CASA, which is the petitioner's argument told as narration.
Sidley AustinCounsel for the Texas Medical Association (advocate)6For the Sixth Time, Sidley-Represented Physicians Prevail in No Surprises Act ChallengeA law-firm press release about the August en banc ruling. It celebrates a client win by counting victories. Readers should treat it as one side's account, not reporting.

References

  1. Trump administration asks justices to determine courts' ability to vacate federal agency actions — SCOTUSblog · Legal-specialist news site focused on the Supreme Court; generally straight reporting
  2. Petition for a writ of certiorari, HHS v. Texas Medical Association, No. 26-491 — Supreme Court of the United States (docket filing by the Office of the Solicitor General) · Primary source; advocacy document of the petitioner (the federal government)
  3. Trump administration asks Supreme Court to address nationwide rulings — The Hill · Washington-focused commercial outlet (Nexstar-owned); center
  4. Trump Admin. Urges High Court To Curb APA Rule Vacatur — Law360 · Subscription legal trade publication (LexisNexis-owned); center
  5. "Set Aside" and Vacatur Under the Administrative Procedure Act — Congressional Research Service · Nonpartisan legislative-branch research agency serving Congress
  6. Texas Medical Association v. HHS, No. 23-40605 (5th Cir. en banc), opinion of Aug. 11, 2026 — U.S. Court of Appeals for the Fifth Circuit (via Georgetown Litigation Tracker) · Primary source (court opinion); hosted by a Georgetown Law project tracking health-law litigation
  7. En Banc Fifth Circuit Rejects Key QPA Rules in TMA III — Polsinelli · Law firm client alert; health-care industry clientele
  8. Trump v. CASA — Wikipedia · Crowd-edited encyclopedia; used here for case holding and date
  9. One Judge, Whole Country: Trump DOJ Asks SCOTUS to End Universal Agency Vacatur — Hoosier Enquirer · Small Indiana digital outlet; orientation not established; framing on this story tracks the administration
  10. United States v. Texas (2023) — Wikipedia · Crowd-edited encyclopedia; used here for the case background and the Gorsuch concurrence
  11. Corner Post and the Statute of Limitations for Administrative Procedure Act Claims — Congressional Research Service · Nonpartisan legislative-branch research agency serving Congress
  12. For the Sixth Time, Sidley-Represented Physicians Prevail in No Surprises Act Challenge — Sidley Austin · Law firm representing the Texas Medical Association; advocate press release
  13. The Past and Future of Universal Vacatur — Yale Law Journal · Student-edited academic law journal; this piece defends the historical basis of vacatur
  14. A Remedy Inherited: State Law, Universal Vacatur, and the Meaning of "Set Aside" — Stanford Law Review Online · Student-edited academic law journal; scholarly argument on the meaning of 'set aside'
  15. No Surprises Here: Providers Win Again in No Surprises Act TMA III Litigation — National Law Review · Publishes law-firm commentary; provider-side author framing
  16. Universal Vacatur in Transition: How Courts Are Interpreting CASA and the APA — Blank Rome LLP · Law firm client alert; corporate litigation clientele