Trump administration is evaluating its next steps
The long‑stalled appeal over President Donald J. Trump’s removal of three members of Puerto Rico’s Financial Oversight and Management Board is finally moving again, with the parties offering sharply different proposals for how the First Circuit should proceed following the Supreme Court’s recent decision in Trump v. Cook.
In dueling July 31 filings, former Board members Arthur J. González, Andrew G. Biggs, and Betty A. Rosa urged the appellate court to set a full briefing schedule, while the U.S. Department of Justice asked the court to send the case back to the district court for further proceedings.
The dispute stems from Trump’s attempt last year to remove the three members “for cause” under PROMESA—a move a federal judge in Puerto Rico temporarily blocked, finding the plaintiffs were likely to succeed on their claims. The federal defendants, White House Personnel Director Sergio Gor and President Trump, appealed that preliminary injunction. Two non‑federal defendants, Board member John E. Nixon and Executive Director Robert F. Mujica Jr., remain parties in the underlying litigation.
The First Circuit paused the appeal in December 2025 while the Supreme Court considered Cook, which addressed whether presidential removals “for cause” are subject to judicial review and whether the President must provide notice or a hearing before acting. On June 29, the Court denied the stay application in Cook and clarified the scope of presidential discretion—prompting the First Circuit to order all parties to propose next steps by July 31.
The plaintiffs told the court they twice contacted federal appellate counsel in July to ask whether the government intended to continue litigating the appeal. Counsel initially said she hoped to share “initial views on next steps,” but no further information followed. In their filing, the plaintiffs said they stand ready to defend the preliminary injunction and asked the First Circuit to move directly to full briefing if the government plans to press the appeal.
The Justice Department, however, took a different approach. In its motion, government attorneys said they are “currently considering [their] next steps in light of the Supreme Court’s decision” and asked the First Circuit to remand the case to the district court “for further proceedings consistent with the Supreme Court’s opinion.” DOJ noted that it consulted with plaintiffs’ counsel and counsel for the non‑federal defendants, and that neither side opposed a remand.
The First Circuit must now decide whether to revive the appeal, dismiss it, or return the matter to the trial court for renewed consideration under the Supreme Court’s clarified framework. The outcome could reshape the contours of presidential authority under PROMESA and determine whether the three former Board members may continue challenging their removals.
