⚖ Oral Arguments, with Context

The Fifth Circuit hears Faulk Company versus Kennedy. Faulk stopped offering qualifying health coverage to employees in 2019 and paid a $205,621 Affordable Care Act employer penalty. The district court ordered a refund and set aside an HHS regulation. It held that HHS, not the IRS, had to complete the Act's employer notice and appeal process before the payment could be assessed. Geoffrey Klimas represents the government and will argue that the IRS has the information and authority to make the required certification. He will also argue that the Declaratory Judgment Act's tax exception, which limits courts' power to declare rights concerning federal taxes, bars Faulk's challenge to the regulation. David LeFevre represents Faulk and will argue that Congress assigned certification to HHS and that invalidating an HHS rule is an administrative-law remedy, not an action against a tax.

Faulk Company v. Kennedy (No. 25-10773) — U.S. Court of Appeals for the Fifth Circuit, argued August 5, 2026.