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Trump Administration Seeks to Deter Legal Challenges with New Rule on Financial Security

A White House memo directs federal agencies to invoke a rarely used rule requiring plaintiffs to post security for costs in lawsuits against government policies.

The White House in Washington, DC, US, on Thursday, Feb. 27, 2025. President Donald Trump said 25% tariffs on Canada and Mexico are on track to go into place on March 4, and said he would impose an additional 10% tax on Chinese imports, moves that would deepen his fight with the largest US trading partners. Photographer: Al Drago/Bloomberg via Getty Images via Getty Images
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Overview

  • The Trump administration has issued a directive encouraging federal agencies to enforce Rule 65(c), which could require plaintiffs seeking injunctions against the government to post financial security upfront.
  • The memo criticizes the surge of lawsuits targeting Trump administration policies, describing them as partisan and potentially frivolous attempts to undermine the democratic process.
  • Nearly 100 lawsuits are currently active, focusing on issues such as immigration, diversity policies, budget freezes, and initiatives led by Elon Musk’s Department of Government Efficiency.
  • Legal experts describe the move as unprecedented and potentially powerful, though courts retain discretion over whether to enforce the rule and the amount of security required.
  • The Supreme Court is set to hear cases this month that could reshape the legal landscape around forum shopping and nationwide injunctions, which are central to the administration's concerns.