Appeals court grants state's request to halt $100,000 daily fines in Texas foster care case

AUSTIN (KXAN) -- Texas is pushing back on a federal judge's decision to demand the state pay $100,000 per day over failures in the foster case system, and the appeals court has agreed to halt those fines, for now.

One day after U.S. District Judge Janis Jack found the state in contempt of court for violating two of her previous orders in the longstanding foster care lawsuit, the attorneys representing the state asked the 5th Circuit Court of Appeals for a stay. On Wednesday, the 5th Circuit granted that stay -- a move that temporarily blocks the judge's order and the daily fines, pending an appeal.

In their motion, the attorneys representing Gov. Greg Abbott, as well as the top-level leadership at both the Health and Human Services Commission and the Department of Family and Protective Services, argued their clients "have worked tirelessly to safeguard the
welfare of the children in their care" and to comply with the court's orders.

According to the filing, "They’ve spent over $100 million in doing so, and instituted countless structural and policy reforms. Nevertheless, the district court has now imposed criminal contempt fines of $100,000 a day."

In 2011, a federal lawsuit was filed against the state of Texas over the treatment of children in its care, and Judge Jack found the system unconstitutional -- saying children regularly left the system more damaged than when they entered. In 2018, the 5th Circuit upheld much of the district judge's ruling -- including specific, court-ordered reforms to the system, known as "remedial orders."

By 2019 and again in 2020, Judge Jack found the state in contempt for violating some of those remedial orders; Her most recent order, filed Monday, marked her third contempt finding against the state and focused on how HHSC investigates complaints of abuse and neglect.

The judge has lambasted the state's handling of the system in various hearings over the years -- particularly over the number of children without placement, known as CWOP: kids who were sleeping in hotels, rentals, and at one point, state office buildings.

The state, on the other hand, continues to point to its progress and the “extraordinary measures” taken so far to comply with the judge's orders. In February, it asked the court for relief in the case, arguing it was 90% compliant with at least a dozen of the judge's remedial orders.

In its most recent motion to the 5th Circuit, the state's attorneys argue the “near-perpetual oversight" by the federal court on the state's "already-complex child welfare regime" raises federalism concerns.

"Subjecting state officials to what amounts to a perpetual regime of criminal contempt without the constitutionally required protections and imposing heavy daily fines pose grave federal-state comity and federalism concerns. The public interest will suffer from the harm to the state defendants’ budgets and operations," the filing reads, in part.

In granting the stay, the appeals court gave the attorneys representing the children in the case until Monday, April 22 to file a response. After that, the state's attorneys have until Wednesday, April 24 to reply.

This is a developing story, and KXAN will update this article when more details become available.