HHS Sued Over Foster Care Religious Rule, Filing Set for December 18 in Texas

The Lawsuit

A coalition of Catholic and evangelical foster care and adoption providers will file a federal lawsuit against the Department of Health and Human Services on December 18, seeking to block a final rule that removes religious exemptions for faith-based child welfare agencies, according to two pastors familiar with the case.

The 47-page complaint, set for filing in the U.S. District Court for the Northern District of Texas in Amarillo, names HHS Secretary Robert F. Kennedy Jr. and the Administration for Children and Families as defendants, the pastors said. The suit argues that the rule, published in the Federal Register on November 7, violates the Administrative Procedure Act, the Religious Freedom Restoration Act, and the Free Exercise Clause of the First Amendment.

The rule at issue requires all agencies receiving Title IV-E foster care funding to place children with families regardless of the agency's religious objections to same-sex couples or unmarried cohabitating partners. HHS estimated the rule would affect roughly 390,000 children in foster care and $10.4 billion in annual federal funding.

The plaintiffs will ask the court to vacate the rule and bar HHS from withholding funds from agencies that operate according to their religious beliefs, according to a religious-liberty lawyer involved in the case. The lawyer said the complaint includes declarations from agency directors in six states and a foster parent who was removed from an agency's home-study program after the rule took effect on December 1.

The rule, formally titled "Nondiscrimination in HHS Funded Programs and Activities on the Basis of Religion," was issued by HHS on November 7 after a 60-day public comment period. The department received more than 84,000 comments, according to the Federal Register notice.

Sources and Legal Strategy

A religious-liberty lawyer involved in drafting the complaint said the coalition will request a nationwide preliminary injunction and a declaratory judgment striking down the rule. The lawyer, who spoke on condition of anonymity because the filing is not yet public, said the plaintiffs include Catholic Charities affiliates in Texas, Michigan, and Massachusetts, plus three evangelical agencies based in Tennessee, Oklahoma, and Pennsylvania.

One church administrator at a Catholic Charities agency in Texas said staff were briefed on the litigation during a December 12 conference call. The administrator said the call included roughly 45 agency directors and lawyers from the Becket Fund for Religious Liberty and Alliance Defending Freedom. The administrator was not authorized to speak publicly.

The complaint will cite the Supreme Court's 2021 decision in Fulton v. City of Philadelphia, along with a June 2025 agency guidance memo that the plaintiffs argue narrowed religious exemptions beyond what the Supreme Court permitted, according to the religious-liberty lawyer. The lawyer said the filing also references a July 2025 Office of Management and Budget report that flagged the rule for insufficient religious accommodation analysis.

The pastors, both of whom serve on advisory boards for agencies in the coalition, said the decision to sue followed a November 22 meeting at the Catholic Diocese of Fort Worth. The meeting lasted three hours and produced a litigation budget of $2.3 million for the first phase of the case, they said.

The religious-liberty lawyer said the coalition chose the Northern District of Texas because two similar cases against HHS rules have resulted in nationwide injunctions from judges in that district over the past two years. The lawyer declined to identify the specific judge the coalition expects to draw.

What Happens Next

The case is expected to be assigned to Judge Matthew Kacsmaryk, who hears cases filed in the Amarillo division. HHS will have 60 days to respond after service. The plaintiffs plan to file a motion for preliminary injunction by December 23, with a hearing requested for January 9, the lawyer said.

Congressional Republicans are watching closely. Two congressional aides briefed on the plan said the House Energy and Commerce Committee may hold a hearing on the rule in early January, depending on the court's initial ruling. Senate Republicans may introduce a resolution of disapproval under the Congressional Review Act if the rule remains in effect past January 3, when the new Congress convenes.

The case marks the most significant legal test of religious foster care rules since the 2021 Fulton decision. Advocates on both sides say the ruling could affect Catholic Charities agencies in Illinois, Washington, and Oregon that have already modified placement policies to comply with state and federal rules.

The HHS press office did not respond to requests for comment on December 15. A spokesperson for the Administration for Children and Families said the agency does not comment on pending litigation.

Watch for a response from HHS by December 20 and for at least one major national denomination to issue a public statement supporting the suit within 72 hours. Opponents of the rule plan to hold a press conference outside the federal courthouse in Amarillo at 10 a.m. Central Time on December 18.