7th Circuit universal injunction in sanctuary cities case

A Seventh Circuit panel on Thursday unanimously declared invalid DOJ's attempt to withhold funds from sanctuary jurisdictions and affirmed a permanent injunction, dividing 2-1 (Rovner wrote the majority, Manion dissented) on the scope of the injunction (while labeling them "universal" throughout). Rovner's opinion walks through the "veritable cottage industry of scholarly articles" on the subject, while suggesting that the scholarly trend is moving away from the constricted view that such injunctions are flatly prohibited.

The majority ultimately approves universality through a version of an indivisibility argument. Because the DOJ programs are formula grants, application of the invalid condition to other entities affects the amount Chicago receives; for Chicago to get the appropriate funds, no entity can lose funds because of this invalid condition. This is different than, for example, a purely discretionary grant of $ X, in which (unlawfully) depriving California of its money does not affect what Chicago receives. Thus, Chicago cannot get complete relief (the proper money to which it is entitled) unless the injunction bars withholding funds from everyone.

Manion's dissent rejects this on several points. The denial of funds to other entities would never reduce Chicago's award, only increase it (the court divides on what the regulations provide on this). Even if such a "windfall" is improper, the windfall comes only if money is denied to Illinois or other municipalities in Illinois; thus an injunction protecting within Illinois is sufficient, without protecting all entities throughout the country. In any event, the majority still errs by giving relief to non-parties in the guise of giving relief to Chicago.

The panel was unanimous on a different scope issue--"temporal" scope. The injunction prohibits DOJ from withholding funds in "future years." The court properly recognized that showing an injury from enforcement of a grant condition allows a party to challenge and a court to enjoin all current and future impositions of such conditions. The alternative would require a party to return each year to challenge each new denial of funds and imposition of unlawful conditions.