State of New Mexico v. Musk

CourtDistrict Court, District of Columbia
DecidedMarch 23, 2026
DocketCivil Action No. 2025-0429
StatusPublished

This text of State of New Mexico v. Musk (State of New Mexico v. Musk) 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.

Bluebook
State of New Mexico v. Musk, (D.D.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

STATE OF NEW MEXICO, et al.,

Plaintiffs,

v. No. 25-cv-429 (TSC)

ELON MUSK, et al.,

Defendants.

JAPANESE AMERICAN CITIZENS LEAGUE, et al.,

v. No. 25-cv-643 (TSC)

MEMORANDUM OPINION

On January 20, 2025, President Trump issued an Executive Order purporting to establish

the “Department of Government Efficiency” (“DOGE”). See Compl. ¶ 65, No. 25-cv-643, ECF

No. 1; see also Establishing and Implementing the President’s “Department of Government

Efficiency,” Exec. Order No. 14,158, 90 Fed. Reg. 8,441 (Jan. 20, 2025). Soon thereafter, a

coalition of nonprofit organizations (collectively, “Plaintiffs” or “Nonprofit Plaintiffs”) 1 filed

this lawsuit, alleging that DOGE has unlawfully assumed an expansive role in the federal

government—terminating grants, cutting Congressionally allocated funds, firing federal workers,

1 Nonprofit Plaintiffs are the Japanese American Citizens League, OCA – Asian Pacific American Advocates, the Sierra Club, and the Union of Concerned Scientists.

Page 1 of 31 and shuttering whole agencies without lawful authority to do so. See Compl. ¶¶ 64, 91, 154.

Defendants now move to dismiss. See Defs.’ Mot. to Dismiss, No. 25-cv-429, ECF No. 90

(“MTD”). For the reasons set forth below, the court will GRANT in part and DENY in part the

Motion to Dismiss.

I. BACKGROUND

In March 2025, the court consolidated this case brought by Nonprofit Plaintiffs with a

similar challenge to DOGE’s activities brought by a coalition of states led by New Mexico. See

Min. Order (Mar. 20, 2025), No. 25-cv-643. The court has already recounted much of the

relevant background in an earlier decision granting in part and denying in part Defendants’

Motion to Dismiss in the case brought by the State Plaintiffs. See New Mexico v. Musk, 784 F.

Supp. 3d 174, 186–91 (D.D.C. 2025). The following is a brief summary.

A. Factual Background

In his Executive Order purporting to establish DOGE, President Trump renamed the U.S.

Digital Service the “United States DOGE Service” (“USDS”) and created within the USDS the

“U.S. DOGE Service Temporary Organization.” Compl. ¶¶ 68, 70. The Order stated that the

DOGE Service Temporary Organization “shall be dedicated to advancing the President’s 18-

month DOGE agenda” and “shall terminate on July 4, 2026.” 90 Fed. Reg. at 8,441. Although

the Order describes a relatively limited role for DOGE, focused on modernizing the federal

government’s technology, see id., subsequent Executive Orders have indicated that DOGE plays

a more expansive role regarding the Administration’s efforts to reduce the size of the federal

workforce and to cut federal spending. See Implementing the President’s “Department of

Government Efficiency” Workforce Optimization Initiative, Exec. Order No. 14,210, 90 Fed.

Reg. 9,669 (Feb. 11, 2025) (requiring each agency to develop a hiring plan and to make hiring

decisions “in consultation with the agency’s DOGE Team Lead”); Implementing the President’s Page 2 of 31 “Department of Government Efficiency” Cost Efficiency Initiative, Exec. Order No. 14,222, 90

Fed. Reg. 11,095 (Feb. 26, 2025) (directing agency heads to consult with DOGE officials to,

among other things, “review all existing covered contracts and grants”).

Plaintiffs claim that DOGE has vastly exceeded even the more expansive roles described

by the later Executive Orders. Rather than acting as mere consultants to agency officials, DOGE

officials have allegedly “direct[ed] executive departments and agencies to cancel federal grants

and loans, stop payments, terminate employees, reduce the workforce, and dismantle the

department or agency itself,” and have directly undertaken such actions themselves. Compl.

¶ 146; see also id. ¶ 144. DOGE has publicly claimed that it is saving the federal government

billions of dollars through “a combination of . . . contract/lease cancellations[,] grant

cancellations, interest savings, programmatic changes, regulatory savings, and workforce

reductions.” Id. ¶ 159; see also id. ¶ 155. DOGE has also claimed credit for shuttering the U.S.

Agency for International Development. Id. ¶¶ 192–95. Plaintiffs further allege that DOGE

officials lack any lawful authority to undertake such sweeping action. Id. ¶¶ 117–21.

B. Procedural History

In March 2025, Nonprofit Plaintiffs filed this lawsuit against the U.S. DOGE Service and

two individuals associated with DOGE (collectively, “DOGE Defendants”), as well as sixteen

federal agencies and the heads of those agencies (collectively, “Agency Defendants”). Plaintiffs’

Complaint brings four claims: Count One asserts that the DOGE Defendants are acting ultra

vires—that is, terminating grants, firing federal workers, and undertaking other action “despite

lacking lawful authority.” Compl. ¶¶ 322–25. Count Two alleges that the DOGE Defendants

are violating the separation of powers by cancelling grants and firing workers for which

Congress has provided appropriations and by otherwise “refusing to spend money appropriated

by Congress.” Id. ¶¶ 326–29. Count Three claims that Elon Musk—sued in his official capacity Page 3 of 31 as the head of DOGE—is violating the Appointments Clause by wielding the power of a

principal officer without having received Senate confirmation. Id. ¶¶ 330–38. And Count Four

claims that Agency Defendants have undertaken unlawful agency action in violation of the

Administrative Procedure Act (“APA”) by, among other things, terminating grants and firing

federal workers. Id. ¶¶ 339–42. Although Elon Musk has left government, see Decl. of Amy

Gleason, ECF No. 117-1, Plaintiffs’ claims against him in his official capacity continue to run

against his successor. See Fed. R. Civ. P. 25(d) (“An action does not abate when a public officer

who is a party in an official capacity dies, resigns, or otherwise ceases to hold office while the

action is pending. The officer’s successor is automatically substituted as a party.”); see also

infra Section III.B.c.

Defendants move to dismiss for lack of subject matter jurisdiction or, in the alternative,

failure to state a claim. For the reasons stated below, the court will GRANT Defendants’ Motion

with respect to Plaintiffs’ separation of powers and APA claims and DENY the Motion with

respect to Plaintiffs’ Appointments Clause and ultra vires claims.

II. LEGAL STANDARDS

Plaintiffs bear the burden of establishing this court’s jurisdiction. See Kokkonen v.

Guardian Life Ins. Co., 511 U.S. 375, 377 (1994). In evaluating whether Plaintiffs have met that

burden at the pleading stage, the court is “required to ‘accept as true all of the factual allegations

contained in the complaint.’” Am. Freedom L. Ctr. v. Obama, 821 F.3d 44, 49 (D.C. Cir. 2016)

(quoting Swierkiewicz v. Sorema N.A., 534 U.S. 506, 508 n.1 (2002)). But the court is not

limited “to the allegations of the complaint” and “may consider such materials outside the

pleadings as it deems appropriate.” Maynard v. Architect of the Capitol, 544 F. Supp. 3d 64, 69

(D.D.C.

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