American Center for International Labor Solidarity v. Chavez-Deremer

CourtDistrict Court, District of Columbia
DecidedJune 30, 2025
DocketCivil Action No. 2025-1128
StatusPublished

This text of American Center for International Labor Solidarity v. Chavez-Deremer (American Center for International Labor Solidarity v. Chavez-Deremer) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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American Center for International Labor Solidarity v. Chavez-Deremer, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

AMERICAN CENTER FOR INTERNATIONAL LABOR SOLIDARITY, et al., Civil Action No. 25-1128 (BAH) Plaintiffs, Judge Beryl A. Howell v.

LORI CHAVEZ-DEREMER, in her official capacity as Secretary of Labor, et al.,

Defendants.

MEMORANDUM OPINION

To protect American workers from unfair labor practices and the concomitant competitive

advantage to foreign trading partners that comes from those foreign countries exploiting cheap

child labor and other vulnerable foreign workers, the Congress has appropriated funds to the

Bureau of International Labor Affairs (“ILAB”), a component of the U.S. Department of Labor

(“DOL”), to provide funding to organizations working to combat child labor and improve working

conditions around the globe, with required minimum funding levels for certain programs. As the

Senate Appropriations Committee explained in a report accompanying the Appropriations Act for

Fiscal Year 2024, ILAB’s cooperative agreement programs exist “to ensure workers and

businesses in the United States are not put at a competitive disadvantage by trading partner

countries not adhering to their labor commitments under trade agreements and trade preference

programs.” S. REP. NO. 118-84, at 31 (2023). This echoes the policy expressed by Congress nearly

forty years ago in the Omnibus Trade and Competitiveness Act of 1988, Pub. L. No. 100-418, tit.

I, § 1101(b)(14), 102 Stat. 1107, 1125 (Aug. 23, 1988), enacted with the signature of then-President

1 Reagan, that “the denial of worker rights should not be a means for a country or its industries to

gain competitive advantage in international trade.”

ILAB characterizes its work as having a dual purpose: promoting “the values of the

American people” and “further[ing] the interests of [American] workers and businesses.” Our

Work (“ILAB Mission Statement”), U.S. Department of Labor Bureau of International Labor

Affairs, https://www.dol.gov/agencies/ilab/our-work (last visited June 27, 2025). In March 2025,

ILAB abruptly terminated all active cooperative agreements that were funding programs in foreign

trading partner countries, telling the awardees that the funded projects no longer effectuated the

agency’s priorities. Plaintiffs in this case—three nonprofit organizations who operated, pursuant

to cooperative agreements with ILAB, a combined total of fifteen labor-related projects in foreign

trading partner countries—have sued DOL and Labor Secretary Lori Chavez-DeRemer, arguing,

in a five-count complaint, that these across-the-board terminations of all ILAB cooperative

agreements, including their own, amounted to an unlawful and unilateral executive decision to end

funding for ILAB’s congressionally mandated programs. Plaintiffs seek relief in the form of

vacatur of the terminations and reinstatement of the cooperative agreements.

The parties now raise three legal issues for resolution. First, defendants seek dismissal of

this lawsuit for lack of subject-matter jurisdiction, arguing that plaintiffs’ claims fall within the

exclusive jurisdiction of the Court of Federal Claims under the Tucker Act, 28 U.S.C. § 1491(a)(1).

Second, both sides move for partial summary judgment on Counts I through IV of the complaint.

Finally, plaintiffs move for a preliminary injunction on Count V of the complaint. As explained

below, this Court may properly exercise subject-matter jurisdiction, but, on the current record,

neither side has demonstrated their entitlement to partial summary judgment on any claim, nor

have plaintiffs established entitlement to preliminary injunctive relief.

2 Accordingly, the parties’ partial cross-motions for summary judgment on Counts I through

IV and plaintiffs’ motion for a preliminary injunction on Count V are denied.

I. BACKGROUND

The relevant factual and procedural background is summarized below.

A. The Bureau of International Labor Affairs and its Cooperative Agreements

ILAB advances its objectives of improving working conditions, promoting workers’ rights,

and addressing the workplace exploitation of children and other vulnerable populations overseas

by “awarding and administering cooperative grant agreements” with organizations working on

relevant labor issues in foreign countries that are trading partners with the United States. Defs.’

Opp’n to Pls.’ Mot. for a Prelim. Inj. (“Defs.’ Opp’n”) at 3, ECF No. 19; see also, e.g., Pls.’ Mem.

of L. in Supp. of Pls.’ Mot. for a Prelim. Inj. (“Pls.’ Mem.”) at 5-6, ECF No. 9-1 (describing

projects funded by ILAB cooperative agreements run by the three plaintiffs in this case). Congress

has provided funding to ILAB for these cooperative agreements through both annual and

supplemental appropriations acts. Defs.’ Opp’n at 3.

In recent years at least, Congress has annually appropriated funds to ILAB for cooperative

agreements, with explicit instructions on how the funds are to be used, including the minimum

amount of funding to be provided, through cooperative agreement awards, for specific purposes.

For example, the Consolidated Appropriations Act, 2021 (“2021 Appropriations Act”), Pub. L.

No. 116-260, 134 Stat. 1182, 1559 (Dec. 27, 2020), appropriated $67,325,000 to ILAB, with

directions setting minimum and maximum appropriations levels for certain programs, specifically

“not more than $53,825,000 shall be for programs to combat exploitative child labor

internationally” and “not less than $13,500,000 shall be used to implement model programs that

address worker rights issues” in trading partner countries. This model of funding has been

repeated, with generally increasing funding amounts in subsequent appropriations laws. See, e.g., 3 Consolidated Appropriations Act, 2022 (“2022 Appropriations Act”), Pub. L. No. 117-103, 136

Stat. 49, 434 (Mar. 15, 2022) (appropriating $74,525,000 for ILAB, with instructions that “not less

than $30,175,000 shall be for programs to combat exploitative child labor internationally and not

less than $30,175,000 shall be used to implement model programs that address worker rights issues

through technical assistance in countries with which the United States has free trade agreements

or trade preference programs”); Consolidated Appropriations Act, 2023 (“2023 Appropriations

Act”), Pub. L. No. 117-328, 136 Stat. 4459, 4846 (Dec. 29, 2022) (appropriating $81,725,000 in

funding for ILAB and setting the same minimum funding level of $30,175,000 for the two

programs described in the 2022 Appropriations Act). For Fiscal Year 2024, Congress kept the

same total level of $81,725,000 in funding for ILAB as in the 2023 Appropriations Act and also

kept the same instructions on minimum spending of these funds for specified purposes,

specifically, that “not less than $30,175,000 shall be for programs to combat exploitative child

labor internationally and not less than $30,175,000 shall be used to implement model programs

that address worker rights issues through technical assistance in countries with which the United

States has free trade agreements or trade preference programs.” Further Consolidated

Appropriations Act, 2024 (“2024 Appropriations Act”), Pub. L. No. 118-47, 138 Stat. 460, 641

(Mar. 23, 2024).

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American Center for International Labor Solidarity v. Chavez-Deremer, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-center-for-international-labor-solidarity-v-chavez-deremer-dcd-2025.