Sponsors (3)
The bill reduces taxpayer and government exposure to costs from wrongfully obtained injunctions by enabling recovery from the party that sought the order, but it raises financial risks and litigation costs for those seeking emergency injunctions—potentially chilling legitimate challenges and encouraging more aggressive, adversarial litigation.
Federal agencies, officers, and employees are protected from uncompensated costs because the government can recover damages and litigation expenses when a court wrongfully enjoins the United States.
Taxpayers face reduced financial exposure because costs from wrongfully obtained injunctions can be shifted to the party who sought the order.
Parties seeking emergency injunctions against the government (including individuals and organizations) may face higher financial risk if courts set inadequate bonds or deny them, deterring legitimate challenges to government action.
Small organizations and low‑income individuals may incur higher litigation costs and potential liability for government costs if an injunction is later deemed wrongful, which could limit access to courts for those challengers.
If courts misapply the recovery rule, it could incentivize government defendants to litigate more aggressively to seek cost recovery, increasing adversarial litigation and court workload.
Based on analysis of 2 sections of legislative text.
Makes a movant liable to the United States for costs and damages when a court issues a Rule 65 injunction without requiring an adequate bond.
Official title: To ensure recovery of taxpayer costs and damages in restraining actions wrongfully brought against the United States.
Introduced May 19, 2025 by Derek Schmidt · Last progress May 19, 2025
Creates a new private-liability rule when a court issues an injunction or temporary restraining order under Rule 65 against the United States (including its agencies, officers, or employees). If the court fails to require the Rule 65 security (bond) or the bond is insufficient to cover the United States’ costs and damages, the party that obtained the injunction is liable to the United States for those costs and damages.