Latham v. Secretary of Veterans Affairs

Court of Appeals for the Federal Circuit·Decided June 16, 2026·No. 25-1540·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

BENJAMIN WAYNE LATHAM, PATRICIA MUSILECK LATHAM,

Petitioners

v.

SECRETARY OF VETERANS AFFAIRS, Respondent

2025-1540

Petition for review pursuant to 38 U.S.C. Section 502.

Decided: June 16, 2026

BENJAMIN WAYNE LATHAM, Raleigh, NC, pro se.

PATRICIA MUSILECK LATHAM, Raleigh, NC, pro se.

SOSUN BAE, Commercial Litigation Branch, Civil Division , United States Department of Justice, Washington, DC, for respondent. Also represented by ERIC P. BRUSKIN, PATRICIA M. MCCARTHY, BRETT SHUMATE; SCOTT J. SHOREMAN, Office of General Counsel, United States Department of Veterans Affairs, Washington, DC.

2 LATHAM v. SECRETARY OF VETERANS AFFAIRS

Before LOURIE, CUNNINGHAM, and STARK, Circuit Judges. PER CURIAM.

Benjamin Latham, a veteran of the U.S. Marine Corps, and Patricia Latham, his wife and caretaker, petition this court under 38 U.S.C. § 502 to review regulations promulgated by the Department of Veterans Affairs (“VA”). While the Lathams have standing to challenge the VA regulations , their contentions fail on the merits. Thus, we deny the petition.

I

Congress created the Program of Comprehensive Assistance for Family Caregivers (“PCAFC”) in the Caregivers and Veterans Omnibus Health Services Act of 2010 (“Caregivers Act”), which is codified at 38 U.S.C. § 1720G. See 124 Stat. 1132. VA regulations governing the implementation of the PCAFC are set out at 38 C.F.R. part 71. See 76 Fed. Reg. 26148 (May 5, 2011).

In 2018, the John S. McCain III, Daniel K. Akaka, and Samuel R. Johnson VA Maintaining Internal Systems and Strengthening Integrated Outside Networks Act of 2018 (“MISSION Act”) became law, amending 38 U.S.C. § 1720G in various ways. See 132 Stat. 1393. In response to enactment of the MISSION Act, on March 6, 2020 the VA published proposed updates to its regulations. See 85 Fed. Reg. 13356. One proposed rule would alter the PCAFC eligibility requirements and reassessment procedures. See id. at 13356, 13378. Under the proposed rule, “legacy participants ” in the PCAFC – that is, individuals who were participants prior to the adoption of the new rule – would have a transition period, preventing them from being discharged from the PCAFC for 12 months, even if they did not meet the new eligibility criteria imposed by the rule. See id. at 13370.

LATHAM v. SECRETARY OF VETERANS AFFAIRS 3

The VA published the final rule on July 31, 2020. See 85 Fed. Reg. 46226. While several commenters posited that legacy participants should be “grandfather[ed]” into the PCAFC, and remain in the program regardless of whether they meet the new criteria, the VA rejected this position, explaining that creating two different systems would be administratively prohibitive, confusing, and result in inequities among similarly-situated veterans and caregivers. See id. at 46253.

In two subsequent interim final rules, the VA extended the transition period for all legacy participants to September 30, 2025. See 86 Fed. Reg. 52614, 52615-16 (Sept. 22, 2021); 87 Fed. Reg. 57602, 57603 (Sept. 21, 2022). In September 2025, the VA published a final rule, which further extended the transition period to September 30, 2028. See 90 Fed. Reg. 46477 (Sept. 29, 2025).

II

Mr. Latham served on active duty in the United States Marine Corps from June 2010 to January 2015. See Latham v. Collins, 2025 WL 733106, at *1 (Fed. Cir. Mar. 7, 2025) (dismissing, for lack of jurisdiction, Mr. Latham’s previous appeal seeking certain PCAFC benefits). The VA has awarded him a 100 percent combined disability rating and special monthly compensation, including an allowance for aid and attendance, effective January 31, 2015. Also in 2015, the Lathams jointly applied for, and received, benefits under the PCAFC. Mrs. Latham was designated as the primary family caregiver and awarded a stipend equivalent to 25 hours of caregiver assistance, commonly referred to as “Tier 2.” The Lathams, thus, are legacy participants in the PCAFC.

In March 2025, the Lathams filed their petition challenging the VA’s proposed final rule. We have exclusive, original jurisdiction to review such challenges to rulemaking actions taken by the Secretary of Veterans Affairs. See 38 U.S.C. § 502. In particular, “under 38 U.S.C. § 502, we 4 LATHAM v. SECRETARY OF VETERANS AFFAIRS

may review the VA’s procedural and substantive rules, any amendments to those rules, and the process in which those rules are made or amended.” Disabled Am. Veterans v. Gober , 234 F.3d 682, 688-69 (Fed. Cir. 2000), overruled on other grounds by Nat’l Org. of Veterans’ Advocs., Inc. v. Sec’y of Veterans Affs., 981 F.3d 1360 (Fed. Cir. 2020) (en banc).

III

The Secretary seeks to dismiss the Lathams’ petition based on their purported lack of standing. Generally, a party has standing if she demonstrates “(i) that she has suffered or likely will suffer an injury in fact, (ii) that the injury likely was caused or will be caused by the defendant, and (iii) that the injury likely would be redressed by the requested judicial relief.” Food & Drug Admin. v. All. for Hippocratic Med., 602 U.S. 367, 380 (2024). The injury in fact must be “concrete and particularized,” not merely “conjectural or hypothetical.” JTEKT Corp. v. GKN Auto. Ltd., 898 F.3d 1217, 1220 (Fed. Cir. 2018).

The Secretary asserts that the “Lathams did not address standing or submit evidence demonstrating standing , and they have not otherwise alleged to have suffered (or that they likely will suffer) an injury in fact, or that the injury likely was caused or will be caused by any of the VA’s rules at issue in this petition.” Resp. Br. at 9. We disagree.

The Lathams allege that the “regulations and prior unpublished policies challenged herein govern Petitioner’s eligibility . . . [for] PCAFC benefits, and such burdens have caused, and continue to cause, concrete injuries.” Open. Br. at 3. They have submitted an order from the Board of Veterans’ Appeals which states that “[t]he Veteran is a legacy participant in the PCAFC program” but adds that “the Veterans Health Administration (VHA) found that the Veteran did not meet the new eligibility requirements for the

LATHAM v. SECRETARY OF VETERANS AFFAIRS 5

PCAFC program.” Appx56-57. 1 While the referenced decision of the VHA is now moot, it demonstrates that the Lathams are legacy participants subject to the new requirements who may suffer the concrete injury of being ousted from the program due to application of the very rule they are challenging. See Appx58. The final rule “establishes the requirement for reassessments” of participation in the PCAFC, which will determine if the Lathams, as legacy participants, continue to benefit from the program. See 85 Fed. Reg. 46226, 46249. Hence, they have standing to press their petition.

IV

We turn now to the merits of the Lathams’ manifold challenges to the VA regulations.

“We review petitions under 38 U.S.C. § 502 in accordance with the standard set forth in the Administrative Procedure Act (‘APA’).” Paralyzed Veterans of Am. v. Sec’y of Veterans Affs., 345 F.3d 1334, 1339 (Fed. Cir. 2003). Under the APA, we must “hold unlawful and set aside agency action ” if that action is “arbitrary, capricious, an abuse of discretion , or otherwise not in accordance with law; . . . contrary to constitutional right, power, privilege, or immunity ; . . . in excess of statutory jurisdiction, authority, or limitations, or short of statutory right; . . . [or] without observance of procedure required by law.” 5 U.S.C. § 706(2)(A)-(D). “This review is highly deferential to the actions of the agency,” Disabled Am. Veterans, 234 F.3d at 691 (internal quotation marks omitted), and rulemaking will not be found to be arbitrary and capricious if there is a

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