United States Court of Appeals

For the Eighth Circuit

___________________________

No. 21-1890

___________________________

The Religious Sisters of Mercy; Sacred Heart Mercy Health Care Center, (Alma,

MI); SMP Health System; University of Mary; Catholic Benefits Association;

Diocese of Fargo; Catholic Charities of North Dakota; Catholic Medical Association

lllllllllllllllllllllPlaintiffs - Appellees

State of North Dakota

lllllllllllllllllllllPlaintiff

v.

Xavier Becerra, Secretary of the United States Department of Human Services;

United States Department of Health and Human Services; Charlotte Burrows,

Chair of the United States Equal Employment Opportunity Commission; United

States Equal Employment Opportunity Commission

lllllllllllllllllllllDefendants - Appellants

 ____________

Appeal from United States District Court 

for the District of North Dakota - Eastern

 ____________

 Submitted: December 15, 2021

Filed: December 9, 2022

____________

Before SMITH, Chief Judge, GRUENDER and KOBES, Circuit Judges. 

____________
SMITH, Chief Judge. 

This case concerns an action by “a coalition of entities affiliated with the

Catholic Church . . . challeng[ing] the implementation of Section 1557 of the Patient

Protection and Affordable Care Act (‘ACA’), a statute that prohibits certain forms of

discrimination in healthcare.” Religious Sisters of Mercy v. Azar, 513 F. Supp. 3d

1113, 1122 (D.N.D. 2021), judgment entered sub nom. Religious Sisters of Mercy v.

Cochran, No. 3:16-cv-00386, 2021 WL 1574628 (D.N.D. Feb. 19, 2021). According

to the plaintiffs, “the Department of Health and Human Services (‘HHS’) and,

derivatively, the Equal Employment Opportunity Commission (‘EEOC’) interpret

Section 1557 and related antidiscrimination laws in a way that compels them to

perform and provide insurance coverage for gender transitions.” Id. The district court

held “that the [Religious Freedom Restoration Act of 1993 (RFRA)] entitles the

. . . [p]laintiffs to permanent injunctive relief from the provision or coverage of

gender-transition procedures.” Id. On appeal, HHS and the EEOC (collectively, “the

government”) challenge the district court’s grant of declaratory and permanent

injunctive relief to the plaintiffs, arguing that the district court erred in determining

“that plaintiffs had demonstrated standing, ripeness, and imminent irreparable injury

sufficient to justify permanent injunctive relief.” Appellants’ Br. at ii. We affirm. 

I. Background

A. Statutes Prohibiting Sex-Based Discrimination

Section 1557 of the ACA provides, in relevant part, that a federally funded or

administered health program or activity is prohibited from denying benefits to, or

subjecting to discrimination, an individual “on [a] ground prohibited under . . . title

IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.).” 42 U.S.C.

§ 18116(a). Section 1557 adopts the enforcement mechanisms available under the

incorporated statutes, including Title IX. Id. Section 1557 vests the Secretary of HHS

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with discretion to promulgate implementing regulations. Id. § 18116(c) (“The

Secretary [of HHS] may promulgate regulations to implement this section.”). 

 In turn, Title IX states that “[n]o person in the United States shall, on the basis

of sex, be excluded from participation in, be denied the benefits of, or be subjected

to discrimination under any education program or activity receiving Federal financial

assistance.” 20 U.S.C. § 1681(a) (emphasis added). “In short, the statute bars . . . sexbased discrimination.” Portz v. St. Cloud St. Univ., 16 F.4th 577, 580 (8th Cir. 2021)

(internal quotation marks omitted). But Title IX exempts from its restrictions “an

educational institution which is controlled by a religious organization if the

application of this subsection would not be consistent with the religious tenets of such

organization.” 20 U.S.C. § 1681(a)(3). Title IX “authoriz[es] federal administrative

enforcement by terminating the federal funding of any noncomplying recipient, [20

U.S.C.] § 1682(1), or ‘by any other means authorized by law,’ § 1682(2).” Nat’l

Collegiate Athletic Ass’n v. Smith, 525 U.S. 459, 467 n.5 (1999). The Supreme “Court

has [also] recognized an implied private right of action.” Fitzgerald v. Barnstable

Sch. Comm., 555 U.S. 246, 255 (2009).

In addition to Title IX and Section 1557, Title VII of the Civil Rights Act of

1964 prohibits employers from discriminating against an applicant or employee

“because of such individual’s . . . sex.” 42 U.S.C. § 2000e-2(a)(1). Title VII “limit[s]

. . . covered ‘employer[s]’ to those with 15 or more employees.” Fort Bend Cnty. v.

Davis, 139 S. Ct. 1843, 1850 (2019) (third alteration in original) (quoting Arbaugh

v. Y & H Corp., 546 U.S. 500, 503–04 (2006) (quoting 42 U.S.C. § 2000e(b))). An

employer who violates Title VII could face an administrative enforcement action or

private suit for compensatory damages, punitive damages, injunctive relief, attorney’s

fees, and other relief. See 42 U.S.C. § 2000e-5(g); id. § 1981a(b). The EEOC “is

empowered . . . to prevent any person from engaging in any unlawful employment

practice” under Title VII. Id. § 2000e-5(a). “We have . . . held that ‘the Supreme

Court’s interpretation of Title VII properly informs our examination of Title IX.’”

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Du Bois v. Bd. of Regents of Univ. of Minn., 987 F.3d 1199, 1203 (8th Cir. 2021)

(quoting Wolfe v. Fayetteville, Ark. Sch. Dist., 648 F.3d 860, 866 (8th Cir. 2011)

(applying Title VII jurisprudence to a Title IX discrimination claim)). 

B. 2016 Rule

In 2016, HHS promulgated a “final rule implement[ing] Section 1557 of the

Affordable Care Act (ACA) (Section 1557).” Nondiscrimination in Health Programs

and Activities, 81 Fed. Reg. 31,375, 31,376 (May 18, 2016) (hereinafter, “2016

Rule”). The 2016 Rule defined “[c]overed entity” as “[a]n entity that operates a health

program or activity, any part of which receives Federal financial assistance.” Id. at

31,466. It defined “[h]ealth program or activity” as “the provision or administration

of health-related services, health-related insurance coverage, or other health-related

coverage.” Id. at 31,467. For entities “principally engaged” in those endeavors, the

regulation extended to “all of [their] operations.” Id. at 31,438. In the 2016 Rule,

HHS “concluded that almost all practicing physicians in the United States are reached

by Section 1557 because they accept some form of Federal remuneration or

reimbursement apart from Medicare Part B.” Id. at 31,446. HHS identified 180

insurers that offered health plans through ACA or state-based marketplace as affected

by the regulation. Id. at 31,448. It also estimated “about 133,343 [healthcare]

facilities” were covered entities. Id. at 31,445. 

Consistent with Title IX, the 2016 Rule prohibited discrimination “on the basis

of . . . sex.” Id. at 31,469. The 2016 Rule defined “[o]n the basis of sex” as

“includ[ing] . . . sex stereotyping[] and gender identity.” Id. at 31,467. HHS based the

definition of “on the basis of sex” “upon existing regulation and previous Federal

agencies’ and courts’ interpretations that discrimination on the basis of sex includes

discrimination on the basis of gender identity and sex stereotyping.” Id. at 31,388. It

defined “[s]ex stereotypes” as “includ[ing] the expectation that individuals will

consistently identify with only one gender and that they will act in conformity with

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the gender-related expressions stereotypically associated with that gender.” Id. at

31,468. It defined “[g]ender identity” as 

an individual’s internal sense of gender, which may be male, female,

neither, or a combination of male and female, and which may be

different from an individual’s sex assigned at birth. The way an

individual expresses gender identity is frequently called “gender

expression,” and may or may not conform to social stereotypes

associated with a particular gender. A transgender individual is an

individual whose gender identity is different from the sex assigned to

that person at birth.

Id. at 31,467.

The 2016 Rule required a covered entity to 

treat individuals consistent with their gender identity, except that a

covered entity may not deny or limit health services that are ordinarily

or exclusively available to individuals of one sex, to a transgender

individual based on the fact that the individual’s sex assigned at birth,

gender identity, or gender otherwise recorded is different from the one

to which such health services are ordinarily or exclusively available. 

Id. at 31,471. “For example, . . . . [a] provider specializing in gynecological services

that previously declined to provide a medically necessary hysterectomy for a

transgender man would have to revise its policy to provide the procedure for

transgender individuals in the same manner it provides the procedure for other

individuals.” Id. at 31,455. 

Under the 2016 Rule, a covered entity’s “denial of a claim for coverage for

transition-related care” based on “an explicit, categorical (or automatic) exclusion or

limitation of coverage for all health services related to gender transition is unlawful

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on its face.” Id. at 31,429; see also id. at 31,471–72. Additionally, HHS explained

that 

in evaluating whether it is discriminatory to deny or limit a request for

coverage for a particular service for an individual seeking the service as

part of transition-related care, . . . [it] w[ould] start by inquiring whether

and to what extent coverage is available when the same service is not

related to gender transition. If, for example, an issuer or State Medicaid

agency denies a claim for coverage for a hysterectomy that a patient’s

provider says is medically necessary to treat gender dysphoria, [HHS]

will evaluate the extent of the covered entity’s coverage policy for

hysterectomies under other circumstances.

Id. at 31,429. In such circumstance, HHS would “carefully scrutinize whether the

covered entity’s explanation for the denial or limitation of coverage for

transition-related care is legitimate and not a pretext for discrimination.” Id.

While the 2016 Rule provided that the statutory exceptions applicable for

discrimination based on race, color, national origin, age, and disability applied, see

id. at 31,470, it omitted Title IX’s religious exemption, see id. HHS expressly

“decline[d] to adopt commenters’ suggestion that [it] import Title IX’s blanket

religious exemption into Section 1557,” noting that “Section 1557 itself contains no

religious exemption” and that “Title IX and its exemption are limited in scope to

educational institutions.” Id. at 31,380 (footnote omitted). HHS found “significant

differences between the educational and health care contexts that warrant different

approaches.” Id. Furthermore, it found that 

a blanket religious exemption could result in a denial or delay in the

provision of health care to individuals and in discouraging individuals

from seeking necessary care, with serious and, in some cases, life

threatening results. Thus, it is appropriate to adopt a more nuanced

approach in the health care context, rather than the blanket religious

exemption applied for educational institutions under Title IX.

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Id.

Although HHS “decided against including a blanket religious exemption in the

final rule,” id. at 31,376, it excepted applications that “would violate applicable

Federal statutory protections for religious freedom and conscience,” id. at 31,466.

According to HHS, “the proposed rule would not displace the protections afforded

by . . . RFRA.” Id. at 31,379 (footnotes omitted). HHS explained that “application of

RFRA is the proper means to evaluate any religious concerns about the application

of Section 1557 requirements.” Id. at 31,380. HHS further noted that it would

evaluate “individualized and fact specific” RFRA claims “on a case-by-case basis.”

Id. “To obtain an exception, in other words, a provider objecting on religious grounds

needed to convince HHS that the regulation circumstantially violated the RFRA.”

Azar, 513 F. Supp. 3d at 1125 (citing R. Doc. 95, at ¶ 51).

“[S]everal commenters [to the 2016 Rule] recommended that [it] not apply to

services of third party administrators providing administrative services to self-insured

group health plans.” 2016 Rule, 81 Fed. Reg. at 31,431. They maintained that Section

1557 does not apply to third party administrators because they “do not design plans,

are not responsible for determining the benefits covered under the plan, and are

required by [the Employment Retirement Income Security Act (ERISA)] to administer

plans as they are written.” Id. (footnote omitted). But HHS declined to “exclud[e]

third party administrator services from the final rule.” Id. at 31,432. Instead, it

“adopt[ed] specific procedures to govern the processing of complaints against third

party administrators.” Id. HHS “recognize[d] that third party administrators are

generally not responsible for the benefit design of the self-insured plans they

administer.” Id. It also recognized that “ERISA . . . requires plans to be administered

consistent with their terms. Thus, if a plan has a discriminatory benefit designed

under Section 1557, a third party administrator could be held responsible for plan

features over which it has no control.” Id. HHS responded to this problem by

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“adjusting the way in which it . . . process[es] claims that involve alleged

discrimination in self-insured group health plans administered by third party

administrators that are covered entities.” Id. HHS would “refer matters to other

[f]ederal agencies with jurisdiction over [an] entity” not under HHS’s jurisdiction. Id.

Where, for example, [HHS] lacks jurisdiction over an employer

responsible for benefit design, [HHS] typically will refer or transfer the

matter to the EEOC and allow that agency to address the matter. The

EEOC has informed [HHS] that, provided the filing meets the

requirements for an EEOC charge, the date a complaint was filed with

[HHS] will be deemed the date it was filed with the EEOC . . . . 

Id. 

At the time of the 2016 Rule’s publication, the “EEOC [had] interpret[ed] and

enforce[d] Title VII’s prohibition of sex discrimination as forbidding any employment

discrimination based on gender identity or sexual orientation.” R. Doc. 97-7, at 1.

“Some examples of LGBT-related claims that EEOC view[ed] as unlawful sex

discrimination include[d] . . . [f]ailing to hire an applicant because she is a

transgender woman. . . . [and] [d]iscriminating against or harassing an employee

because of his or her . . . gender identity, . . . for example, on the basis of transgender

status.” Id. at 2. Indeed, the EEOC had previously found “intentional discrimination

against a transgender individual because that person’s gender identity is, by

definition, discrimination based on sex and therefore violates Title VII.” Id. at 3

(citing Macy v. Holder, EEOC Appeal No. 0120120821, 2012 WL 1435995 (April

20, 2012)). The EEOC continues to follow this interpretation of Title VII . See EEOC,

Fact Sheet: Recent EEOC Litigation Regarding Title VII & LGBT-Related

Discrimination, https://www.eeoc.gov/fact-sheet-recent-eeoc-litigation-regarding-t

itle-vii-lgbt-related-discrimination (last updated July 8, 2016). 

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Shortly after the 2016 Rule took partial effect, a group of states and private

religious healthcare providers filed suit in the Northern District of Texas. See

Franciscan All., Inc. v. Burwell (Franciscan Alliance I), 227 F. Supp. 3d 660 (N.D.

Tex. 2016). That district court entered “a nationwide [preliminary] injunction,” id. at

695, prohibiting HHS from “enforcing the [2016] Rule’s prohibition against

discrimination on the basis of gender identity,” id. at 696. First, the court determined

that the 2016 Rule violated the Administrative Procedures Act (APA) by

impermissibly expanding the scope of sex discrimination under Title IX to include

gender identity. Id. at 689. Second, the court concluded that the 2016 “Rule’s failure

to include Title IX’s religious exemptions renders the Rule contrary to law.” Id. at

691. Third, the court found that the plaintiffs “demonstrated a substantial likelihood

of success on their claim that the [2016] Rule violates RFRA.” Id. at 693.

Contemporaneously, the two cases giving rise to this appeal were filed.

Relevant to the present appeal, the Religious Sisters of Mercy,1 Sacred Heart Mercy

Health Care Center,2

 SMP Health System,3

 and the University of Mary4

 (collectively,

1Religious Sisters of Mercy is “a Catholic order of religious sisters devoted to

works of mercy, including offering healthcare to the underserved.” R. Doc. 96-2, at

¶ 2. It is a nonprofit corporation located in Alma, Michigan, and “officially approved

by the Vatican.” Id. ¶ 3. The sisters “have chosen to follow Jesus Christ by taking a

lifetime vow to serve the poor and sick by offering care for the whole person, and

working to heal those who are suffering from physical, psychological, intellectual,

and spiritual woundedness.” Id. at ¶ 4. As part of that mission, some sisters serve as

licensed healthcare professionals.

2The Religious Sisters of Mercy own and operate Sacred Heart Mercy Health

Care Center (Sacred Heart), a nonprofit clinic located in Alma, Michigan. “Some of

the Religious Sisters of Mercy serve as licensed doctors, nurses, or other healthcare

professionals who perform medical services in this clinic.” Id. at ¶ 6. Sacred Heart

serves “poor, disabled, and elderly Medicare and Medicaid patients.” Id. at ¶ 8. “The

Religious Sisters of Mercy . . . run the clinic in accordance with the Ethical and

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“RSM plaintiffs”)5

 filed suit, alleging that HHS had violated, among other things, the

APA, the First Amendment, and the RFRA. Additionally, the Catholic Benefits

Association (CBA);6 Diocese of Fargo (Diocese);7 Catholic Charities North Dakota

Religious Directives of the United States Conference of Catholic Bishops.” Id. ¶ 6.

3

“SMP Health System is operated according to the religious beliefs of its

sponsor, the Sisters of Mary of the Presentation.” R. Doc 96-3, ¶ 4. It is headquartered

in Valley City, North Dakota, and operates healthcare facilities in North Dakota and

Illinois. “SMP Health System has a special emphasis on providing services to the

poor and elderly, including many Medicare and Medicaid patients.” Id. at ¶ 4. “The

Sisters of Mary of the Presentation operate SMP Health System in a manner that

abides by The Ethical and Religious Directives for Catholic Healthcare Services, as

issued by the United States Conference of Catholic Bishops and interpreted by the

local Bishop.” Id. at ¶ 5 (emphasis omitted).

4The University of Mary (University) is a Roman Catholic university founded

by the Benedictine Sisters and located in Bismarck, North Dakota. “The University

welcomes students of all faiths and backgrounds,” but it “ upholds Catholic teaching

in its programs and services.” R. Doc. 96-4, at ¶ 6. The University offers a nursing

program and operates a student health clinic that both receive funding from HHS.

5Each of the RSM plaintiffs believe “that every man and woman is created in

the image and likeness of God, and that they reflect God’s image in unique—and

uniquely dignified—ways.” R. Docs. 96-2, at ¶ 9; 96-3, at ¶ 6; 96-4, at ¶ 9. Each of

them also serves every individual who needs and qualifies for care, including

transgender persons. But the RSM plaintiffs believe that performing gender-transition

procedures would violate their medical judgment by potentially causing harm to

patients. Additionally, they believe that they would violate their religious beliefs

regarding human sexuality and procreation if they performed, among other things,

gender-transition services. They also object for religious reasons to providing

insurance coverage for their eligible employees for gender transitions.

6The CBA is a nonprofit corporation and Catholic ministry. One of its purposes

is “[t]o support Catholic employers . . . that, as part of their religious witness and

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(Catholic Charities);8

 and Catholic Medical Association (CMA)9 (collectively, “CBA

exercise, provide health or other benefits to their respective employees in a manner

that is consistent with Catholic values.” R. Doc. 97-1, at 2. The CBA’s membership

includes over 1,030 employers and 5,100 Catholic parishes within more than 60

dioceses and archdioceses. Collectively, its membership covers more than 90,000

employees and their families. Only Catholic employers that commit to providing

benefits and services consistent with Catholic values may become CBA members.

Several CBA members receive funding from Medicare, Medicaid, or other

HHS-administered programs for healthcare or health-related services. Additionally,

some employer members like Catholic dioceses and archdioceses offer employee

health benefits in conjunction with health insurers and third-party administrators that

receive federal financial assistance.

7The Diocese’s purpose is to carry out the spiritual, educational, and social

service mission of the Catholic Church in eastern North Dakota. It employs more than

15 individuals and operates a self-insured health plan for its employees. Additionally,

several Catholic parishes and affiliated ministries within the Diocese participate in

the health plan. Blue Cross Blue Shield of North Dakota (BCBSND) is the third-party

administrator that administers the Diocese’s health plan. BCBSND receives federal

financial assistance through an ACA exchange. The Diocese has an indemnification

agreement with BCBSND for decisions related to health plan design, such as the

exclusion of gender-transition coverage.

8Catholic Charities uses social service programs to serve the poor, elderly, and

disabled. Its social service programs include disaster relief, individual and family

counseling, adoption services, pregnancy counseling, and guardianship services for

adults with special needs. It employs more than 15 individuals. Catholic Charities

contracts with an insurer that receives federal financial assistance from HHS to

provide benefits to its employees.

9CMA is a national, physician-led community of healthcare professionals. Its

purpose is to uphold Catholic-faith principles in the science and practice of medicine.

CMA members promise to adhere to Catholic moral principles, particularly those

related to bio-medical ethics. Consistent with their faith, CMA members do not

provide gender-transition services. Some CMA members do perform procedures like

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plaintiffs”) filed suit, seeking declaratory and injunctive relief pursuant to the RFRA

against HHS’s and the EEOC’s interpretation and enforcement of the relevant statutes

to the extent they required the CBA plaintiffs to “provide, perform, pay for, cover, or

facilitate access to health services for gender transition.” R. Doc. 97, at 81. The

district court stayed enforcement of the 2016 Rule’s prohibition against gender-based

identity discrimination as applied to the RSM plaintiffs and CBA plaintiffs. The court

also acknowledged Franciscan Alliance I’s nationwide preliminary injunction.

Following these decisions, the present case and the Franciscan Alliance case

were stayed to enable HHS to consider further rulemaking. 

Over a year passed while a draft of a new proposed rule circulated through the

executive branch. Then, in December 2018, the Franciscan Alliance litigation

restarted. The plaintiffs in that case moved for partial summary judgment and

permanent injunctive relief as to only the APA and RFRA claims. The district court

granted the plaintiffs’ summary-judgment motion. Franciscan All., Inc. v. Azar

(Franciscan Alliance II), 414 F. Supp. 3d 928, 944 (N.D. Tex. 2019). First, it found

“no reason to depart from its analysis on the APA claim.” Id. at 942. Second, it held

“that the [2016] Rule, which expressly prohibits religious exemptions, substantially

burdens Private Plaintiffs’ religious exercise in violation of RFRA.” Id. at 944. “But

it declined to issue an injunction because it found there was no indication that, if the

rule was vacated, HHS would bring an enforcement action against Franciscan

Alliance.” Franciscan All., Inc. v. Becerra (Franciscan Alliance V), 47 F.4th 368, 372

(5th Cir. 2022). Instead, it vacated the gender-identity prohibition, among other

things, and remanded to HHS for further consideration. Franciscan Alliance II, 414

hysterectomies and mastectomies that other physicians perform as part of gender

transitions. Some CMA members also offer health benefits for employees that

exclude coverage for gender transitions.

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F. Supp. 3d at 947. “Soon thereafter, the [c]ourt modified the Final Judgment to

clarify that it vacated the 2016 Rule insofar as it defined ‘on the basis of sex’ to

include gender identity . . . .” Franciscan All., Inc. v. Becerra (Franciscan Alliance

IV), 553 F. Supp. 3d 361, 366 (N.D. Tex. 2021), amended, No. 7:16-CV-00108-O,

2021 WL 6774686 (N.D. Tex. Oct. 1, 2021). “Franciscan Alliance timely appealed

the denial of permanent injunctive relief.” Franciscan Alliance V, 47 F.4th at 372.

C. 2020 Rule and Bostock Decision

“[T]he landscape [then] drastically shifted.” Franciscan Alliance IV, 553 F.

Supp. 3d at 366. In June 2020, HHS repealed the 2016 Rule and finalized a new

Section 1557 rule. Nondiscrimination in Health and Health Education Programs or

Activities, Delegation of Authority, 85 Fed. Reg. 37,160 (June 19, 2020) (hereinafter,

“2020 Rule”). The 2020 Rule adopted Title IX’s religious exemption and “repeal[ed]

the 2016 Rule’s definition of ‘on the basis of sex,’ but decline[d] to replace it with a

new regulatory definition. Instead, the [2020] [R]ule revert[ed] to, and relie[d] upon,

the plain meaning of the term in [Title IX].” Id. at 37,178 (citation omitted).

At the time that HHS issued the 2020 Rule, Bostock v. Clayton County, 140

S. Ct. 1731 (2020), was pending. The question presented in Bostock was whether an

employer violates Title VII’s proscription of discrimination “because of . . . sex” by

“fir[ing] an individual for being homosexual or transgender.” Id. at 1737. HHS

acknowledged that “a holding by the U.S. Supreme Court on the meaning of ‘on the

basis of sex’ under Title VII will likely have ramifications for the definition of ‘on

the basis of sex’ under Title IX.” 2020 Rule, 85 Fed. Reg. at 37,168. HHS further

acknowledged that “to the extent that a Supreme Court decision is applicable in

interpreting the meaning of a statutory term, the elimination of a regulatory definition

of such term would not preclude application of the Court’s construction.” Id.

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Like the 2016 Rule, the 2020 Rule did “not craft a religious exemption to

Section 1557.” Id. at 37,207. HHS reasoned that “Congress has already created

various religious and conscience protections in healthcare by enacting several

statutes, including RFRA, healthcare conscience statutes, and the religious

organization exception in Title IX.” Id. The 2020 Rule provided that Section 1557

“will be implemented consistent with those statutes.” Id.

Shortly after HHS finalized the 2020 Rule, the Supreme Court decided Bostock.

The Court held that “[w]hen an employer fires an employee for being homosexual or

transgender, it necessarily and intentionally discriminates against that individual in

part because of sex” under Title VII. 140 S. Ct. at 1744. In other words, the Court

interpreted Title VII’s prohibition on “sex discrimination” to include gender identity

and sexual orientation. Although the Court “proceed[ed] on the assumption that ‘sex’

. . . refer[s] only to biological distinctions between male and female,” id. at 1739, it

determined that “it is impossible to discriminate against a person for being

homosexual or transgender without discriminating against that individual based on

sex,” id. at 1741. But the Court cautioned that it was not “prejudg[ing]” whether its

“decision will sweep beyond Title VII to other federal or state laws that prohibit sex

discrimination.” Id. at 1753. The Court also expressed “deep[] concern[] with

preserving the promise of the free exercise of religion enshrined in our Constitution.”

Id. at 1754. “But,” the Court noted, “worries about how Title VII may intersect with

religious liberties are nothing new.” Id. In fact, Congress went “a step further . . . in

. . . RFRA” by “prohibit[ing] the federal government from substantially burdening a

person’s exercise of religion unless it demonstrates that doing so both furthers a

compelling governmental interest and represents the least restrictive means of

furthering that interest.” Id. “Because RFRA operates as a kind of super statute,

displacing the normal operation of other federal laws,” the Court explained, “it might

supersede Title VII’s commands in appropriate cases.” Id. Thus, “other employers in

other cases may raise free exercise arguments that merit careful consideration.” Id.

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“Bostock triggered multiple lawsuits challenging the 2020 Rule. Most relevant

here, two courts entered nationwide injunctions preventing much of the 2020 Rule

from going into effect, effectively reinstating portions of the 2016 Rule (the [Walker]

and Whitman-Walker opinions).” Franciscan Alliance V, 47 F.4th at 372 (citing

Whitman-Walker Clinic, Inc. v. HHS, 485 F. Supp. 3d 1, 60 (D.D.C. 2020); Walker

v. Azar, 480 F. Supp. 3d 417, 420 (E.D.N.Y. 2020)). While the Walker and WhitmanWalker courts recognized that they lacked any power to undo the Franciscan Alliance

district court’s vacatur, “in effect they did just that.” Id. Neither court “directly

resurrect[ed] the 2016 Rule’s prohibition on ‘gender identity’ discrimination”;

however, “they did reanimate the rule’s ‘sex-stereotyping’ prohibition.” Id. (citing

Whitman-Walker, 485 F. Supp. 3d at 64; Walker, 480 F. Supp. 3d at 430). “Both

courts further reasoned that, in light of Bostock, sex-stereotyping discrimination

encompasses gender identity discrimination.” Id. (citing Whitman-Walker, 485 F.

Supp. 3d at 39–42; Walker, 480 F. Supp. 3d at 429–30). Additionally, the WhitmanWalker court “enjoined the 2020 Rule’s incorporation of Title IX’s religious

exemption, even though the [Franciscan Alliance] district court . . . held that the 2016

Rule was unlawful for not providing such an exemption.” Id. (footnote omitted)

(citing Whitman-Walker, 485 F. Supp. 3d at 64).

D. Present Lawsuit

On November 6, 2020, the RSM plaintiffs and CBA plaintiffs (collectively,

“plaintiffs”) moved to lift the stay in the present case. The district court granted the

motion. 

On November 23, 2020, the plaintiffs timely filed amended complaints and

contemporaneously moved for partial summary judgment and permanent injunctive

relief. The RSM plaintiffs challenged HHS’s interpretation of Section 1557 to

“require[] [them] to provide and insure gender-transition procedures . . . or else face

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liability for ‘sex’ discrimination.” R. Doc. 96, at 1–2. They moved for partial

summary judgment, arguing that HHS’s interpretation of Section 1557 violates the

RFRA and the APA. The CBA plaintiffs relied exclusively on the RFRA. They

requested relief from the same interpretation of Section 1557, as well as from parallel

interpretations of Title VII, Title IX, or any other federal laws. In the alternative, all

the plaintiffs moved for a preliminary injunction. 

The government responded in opposition to the motions and moved to dismiss

both cases in their entirety for lack of jurisdiction. It argued that the plaintiffs did not

have standing because they lacked a cognizable injury; the claims were moot because

“HHS has repealed the challenged portions of the 2016 Rule and incorporate[d]

religious . . . exemptions that apply to [the] [p]laintiffs”; and the claims were “unripe

to the degree any alleged injury is based on any possible future regulatory or

enforcement action.” R. Doc. 113, at 15. 

1. Jurisdiction

a. Standing

i. Section 1557

The district court first considered whether the plaintiffs have standing to

challenge HHS’s current interpretation of Section 1557. It determined that the RSM

plaintiffs “qualify as objects of Section 1557 and its implementing regulations”

because they “operate health programs receiving federal financial assistance from

HHS.” Azar, 513 F. Supp. 3d at 1136. 

It then concluded that the CBA has associational standing to challenge HHS’s

interpretation of Section 1557. See id. (citing Sierra Club v. U.S. Army Corps of

Eng’rs, 645 F.3d 978, 986 (8th Cir. 2011). According to the court, “[t]he CBA’s

purpose of supporting Catholic employers that wish to provide employee benefits

consistent with their religious beliefs is . . . germane to a lawsuit that challenges

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regulations affecting members’ health plans.” Id. at 1137. The court determined that

the individual members’ participation is not required because the CBA, as an

organization plaintiff, “s[ought] only declaratory and prospective relief.” Id. (quoting

Heartland Acad. Cmty. Church v. Waddle, 427 F.3d 525, 533 (8th Cir. 2005)). “As

for the ability of individual members to sue,” the court concluded that “the CBA’s

verified second amended complaint confirms that its membership includes Catholic

hospitals and other healthcare entities ‘that receive Medicaid and Medicare payments

and participate in HHS-funded programs.’” Id. (quoting R. Doc. 97, at ¶¶ 55–56). 

Because “at least some CBA members [are] on equal footing with the [RSM]

[p]laintiffs,” the question was “whether those Plaintiffs—and, by implication, the

similarly situated CBA members—possess standing.” Id. (citing Susan B. Anthony

List v. Driehaus, 573 U.S. 149, 157–58 (2014)). The district court determined that an

injury-in-fact existed for three reasons. “First,” the court concluded, “the [p]laintiffs’

conduct implicates constitutional interests”; specifically, the “exercise of their

religious beliefs protected by the First Amendment.” Id. at 1138. 

“Second,” the court reasoned, “Section 1557 ‘arguably proscribe[s]’ the

[p]laintiffs’ refusal to perform or cover gender-transition procedures.” Id. (first

alteration in original) (quoting Susan B. Anthony List, 573 U.S. at 162). As support,

the district court noted that “two district courts entered partially overlapping

preliminary injunctions that collectively reinstate the prior definition of ‘on the basis

of sex’ to include ‘gender identity’ and ‘sex stereotyping.’” Id. (citing Walker, 480

F. Supp. 3d at 430; Whitman-Walker, 485 F. Supp. 3d at 65–65). The court also noted

that “[t]he Whitman-Walker court . . . enjoined incorporation of the Title IX religious

exemption.” Id. (citing Whitman-Walker, 485 F. Supp. 3d at 64–65). Furthermore, the

court concluded, “the [p]laintiffs face potential consequences from the 2020 Rule

even without the injunctions. . . . because HHS declined to promulgate a new

regulatory definition for ‘sex,’ instead leaving the door open to ‘application of the

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[Bostock] Court’s construction.’” Id. at 1138 (third alteration in original) (quoting

2020 Rule, 85 Fed. Reg. at 37,168). Recent decisions following Bostock and “HHS’s

own statements” indicated that “the [p]laintiffs’ refusal to perform or cover gendertransition procedures arguably falls within the ambit of Section 1557.” Id. at 1139.

“Third,” the court concluded that “a credible threat of enforcement endures”

because “Section 1557 is amenable to an interpretation that would expose the

Plaintiffs to liability for declining to provide or insure gender-transition services.” Id.

The court found “no evidence . . . that authorities have actually refused to enforce the

statute.” Id. (internal quotation marks omitted). Instead, “HHS has undertaken two

rulemakings to refine enforcement parameters in the ten years following Section

1557’s enactment.” Id.

The court also determined that the second and third standing requirements are

satisfied: “HHS’s responsibility to enforce Section 1557 supplies a sufficient causal

relationship to the asserted injuries, which declaratory and injunctive relief will likely

redress.” Id.

As a result, the court held that the RSM “[p]laintiffs have standing to challenge

HHS’s interpretation of Section 1557 that requires them to perform and provide

insurance coverage for gender-transition procedures” and that the CBA plaintiffs

“possess[] associational standing to sue on behalf of [the] members, including the

Diocese, Catholic Charities, and the CMA.” Id. at 1141. 

ii. Title VII

The court next held that “the CBA has associational standing to pursue RFRA

claims against the EEOC’s interpretation of Title VII.” Id. The associational standing

requirements were satisfied for the same reasons given with respect to the Section

1557 claim. See id. And, the court concluded that the “three-part injury-in-fact

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standard,” id. at 1141, including the primarily disputed requirement of “threatened

enforcement,” id. at 1142, was satisfied. The court noted that “[t]he EEOC has never

disavowed an intent to enforce Title VII’s prohibition on gender-transition exclusions

in health plans against the CBA or its members” and “has enforced that very

interpretation against other employers.” Id. at 1142. The standing requirements of

causation and redressability were satisfied because “[t]he EEOC shoulders

enforcement responsibility for Title VII, and declaratory and injunctive relief will

likely redress the threat of enforcement.” Id.10

b. Ripeness

The court held that “[t]he [p]laintiffs’ surviving claims against the

interpretations of Section 1557 and Title VII” are “ripe for review.” Id. at 1145. First,

the claims “present purely legal questions . . . and need no additional factual

development.” Id. (internal quotation marks omitted). Second, “[p]ractical harm is

manifest . . . because the [p]laintiffs must either alter their policies for providing and

covering gender-transition procedures . . . or risk the loss of critical federal healthcare

funding along with potential civil and criminal penalties.” Id.

c. Mootness

The court held that “neither case is moot because nothing has changed since

the [p]laintiffs submitted their amended complaints.” Id. at 1146. Specifically, the

plaintiffs “remain subject to the interpretations of Section 1557 and Title VII that

spurred them to move for relief. . . . , and the challenged legal regime has stayed

constant since this litigation recommenced.” Id.

10The district court held that the CBA plaintiffs lacked standing to seek relief

under Title IX and other federal laws. That claim is not at issue in this appeal. 

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d. Summary of Jurisdictional Holdings

The court held that it “w[ould] exercise jurisdiction over the [p]laintiffs’ RFRA

. . . claim[] challenging the interpretations of Section 1557 and Title VII that compel

them to perform and provide insurance coverage for gender transitions.” Id. at 1146. 

2. Summary Judgment

The district court held that “[a]s applied, the challenged interpretations of

Section 1557 and Title VII violate the RFRA” and, as a result, summary judgment

was appropriate. Id. at 1149. First, the court concluded that “a substantial burden

weighs on the exercise of religion” “[b]ecause the interpretations of Section 1557 and

Title VII threaten to penalize the Catholic [p]laintiffs for adhering to their beliefs.”

Id. at 1147–48. 

Second, the court concluded that “less restrictive alternatives” existed,

including the government (1) “assum[ing] the cost of providing gender-transition

procedures for those unable to obtain them under their health-insurance policies due

to their employers’ religious objections”; (2) “providing subsidies, reimbursements,

tax credits, or tax deductions to employees”; (3) “paying for services at community

health centers, public clinics, and hospitals with income-based support”; (4)

“treat[ing] employees whose employers do not provide complete coverage for

religious reasons the same as it does employees whose employers provide no

coverage at all”; and (5) “assist[ing] transgender individuals in finding and paying for

transition procedures available from the growing number of healthcare providers who

offer and specialize in those services.” Id. at 1149 (cleaned up).

3. Injunctive Relief

The district court “permanently enjoin[ed] the [d]efendants from enforcing the

successfully challenged interpretations of federal law against the Catholic

[p]laintiffs.” Id. at 1153. It explained, “[W]ith actual success on the RFRA claims

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established, ‘the other requirements for obtaining a[n] . . . injunction are generally

deemed to have been satisfied.’” Id. at 1153 (second and third alterations in original)

(quoting Minn. Citizens Concerned for Life, Inc. v. Swanson, 692 F.3d 864, 870 (8th

Cir. 2012) (en banc)). 

4. Summary of Holdings

In summary, the district court (1) declared that HHS’s interpretation of Section

1557 requiring the plaintiffs to perform or provide insurance coverage for gendertransition procedures violates the plaintiffs’ sincerely held religious beliefs and fails

to satisfy strict scrutiny under the RFRA; (2) permanently enjoined HHS and the

EEOC “from interpreting or enforcing Section 1557 of the ACA, 42 U.S.C.

§ 18116(a), or any implementing regulations thereto against the Catholic Plaintiffs

in a manner that would require them to perform or provide insurance coverage for

gender-transition procedures”; (3) declared that the EEOC’s interpretation of Title

VII requiring the CBA and the CBA members to provide insurance coverage for

gender-transition procedures violates their sincerely held religious beliefs and fails

to satisfy strict scrutiny under the RFRA; and (4) permanently enjoined the EEOC

“from interpreting or enforcing Title VII of the Civil Rights Act of 1964, 42 U.S.C.

§ 2000e et seq., or any implementing regulations thereto against the CBA and its

members in a manner that would require them to provide insurance coverage for

gender-transition procedures.” Id. at 1153–54.

E. Subsequent Developments

1. HHS

The day after the district court’s order, President Joseph R. Biden, Jr., issued

an executive order, citing Bostock, which declared that “laws that prohibit sex

discrimination . . . prohibit discrimination on the basis of gender identity or sexual

orientation.” Exec. Order No. 13,988, 86 Fed. Reg. 7023, 7023 (Jan. 20, 2021).

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President Biden directed federal agencies to “fully implement statutes that prohibit

sex discrimination” consistent with the Administration’s interpretation. Id.

In April 2021, the Fifth Circuit issued an opinion on the Franciscan Alliance

plaintiffs’ appeal of the district court’s denial of permanent injunctive relief. See

Franciscan All., Inc. v. Becerra (Franciscan Alliance III), 843 F. App’x 662 (5th Cir.

2021) (unpublished per curiam). The Fifth Circuit “remanded the case to the district

court because ‘the legal landscape ha[d] shifted significantly’ since the district court

denied injunctive relief.” Franciscan Alliance V, 47 F.4th at 373 (alteration in

original) (quoting Franciscan Alliance III, 843 F. App’x at 662).

In May 2021, HHS issued a notification. See Notification of Interpretation and

Enforcement of Section 1157 of the Affordable Care Act and Title IX of the

Education Amendments of 1972, 86 Fed. Reg. 27,984-02, 27,984 (May 25, 2021)

(hereinafter, “2021 Notification”). The 2021 Notification advised that “[HHS]

w[ould] interpret and enforce Section 1557’s prohibition on discrimination on the

basis of sex” “[c]onsistent with the Supreme Court’s decision in Bostock.” Id. at

27,985. As a result, HHS “include[d] . . . [d]iscrimination on the basis of sexual

orientation . . . and . . . discrimination on the basis of gender identity” as part of the

“prohibition on discrimination.” Id. “This interpretation w[ould] guide [HHS] in

processing complaints and conducting investigations”; however, it was not the

determinative factor of “the outcome in any particular case or set of facts.” Id. The

2021 Notification recognized that “[HHS] w[ould] comply with the [RFRA].” Id. “It

also encouraged members of the public to file complaints with HHS if they believed

the rule had been violated.” Franciscan Alliance V, 47 F.4th at 373 (citing 2020 Rule,

85 Fed. Reg. at 27,985). 

In August 2021, the Franciscan Alliance “district court ruled on Franciscan

Alliance’s motion for a permanent injunction.” Id. at 373. While HHS argued “that

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the 2020 Rule rendered the case moot,” the district court “found that Franciscan

Alliance’s complaint had challenged Section 1557 in addition to the 2016 Rule, and

concluded that Rule 54(c) authorized the court to issue the injunction Franciscan

Alliance now sought.” Id. Additionally, the district court determined “that subsequent

events showed that partial vacatur of the 2016 Rule was insufficient to remedy the

RFRA violation.” Id. It concluded that Franciscan Alliance satisfied the requirements

for a permanent injunction and “enjoined HHS ‘from interpreting or enforcing

Section 1557 . . . or any implementing regulations thereto’ against Franciscan

Alliance ‘in a manner that would require [it] to perform’ or insure genderreassignment surgeries.” Id. (alterations in original) (quoting Franciscan Alliance IV,

553 F. Supp. 3d at 378).11

In November 2021, HHS noticed its appeal in the Franciscan Alliance case.

“That same month, it withdrew the appeal in Walker and Whitman-Walker, leaving

in place the injunctions reinstating parts of the 2016 Rule.” Franciscan Alliance V,47

F.4th at 373.

11In October 2021, the Franciscan Alliance district court modified its August

2021 order to clarify that 

HHS does not violate this order by taking an of the above-described

actions against Plaintiffs, their current or future members, or those

acting in concern or participation with them, including their respective

health plans and any insurers or third-party administrators in connection

with such health plans, if the agency officials directly responsible for

taking these actions are unaware that an entity is a member of one of the

Plaintiffs or has a relevant relationship to one of the

Plaintiffs/Plaintiff-members. 

Franciscan All., Inc. v. Becerra, No. 7:16-CV-00108-O, 2021 WL 6774686, at *1

(N.D. Tex. Oct. 1, 2021). 

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“In March 2022, HHS issued a ‘Notice and Guidance on Gender Affirming

Care’ (the ‘2022 Notice’). The 2022 Notice states that ‘[a]ttempts to restrict’

gender-reassignment surgeries are ‘dangerous’ and ‘covered entities restricting an

individual’s ability to receive . . . gender-affirming care . . . likely violates Section

1557.’” Id. (alterations in original) (quoting HHS Notice and Guidance on Gender

Affirming Care, Civil Rights, and Patient Privacy, U.S. Dep’t of Health & Human

Servs. (Mar. 2, 2022), https://perma.cc/LX26-59QR (hereinafter, “2022 Notice”)).

Moreover, the 2022 Notice advised “that HHS ‘is investigating and, where

appropriate, enforcing Section 1557’ in ‘cases involving discrimination on the basis

of . . . gender identity.’” Id. (alteration in original) (quoting 2022 Notice). 

“[O]n August 4, 2022, HHS filed a Notice of Proposed Rulemaking (the 2022

NPRM). This proposed rule, if adopted, would reinstate much the same approach as

the 2016 Rule by likewise interpreting Section 1557 to require that hospitals perform

gender-reassignment surgeries . . . .” Id. (citing Nondiscrimination in Health

Programs and Activities, 87 Fed. Reg. 47824-01, 47871–72, 47878–79 (proposed

Aug. 4, 2022)).

Finally, on August 26, 2022, the Fifth Circuit issued its opinion on HHS’s

appeal of the district court’s grant of permanent injunctive relief to the Franciscan

Alliance plaintiffs. See Franciscan Alliance V, 47 F.4th at 368. The Fifth Circuit held

that the plaintiffs’ APA claim was moot, the RFRA claim was not moot, the district

court properly awarded permanent injunctive relief to the plaintiffs, and the plaintiffs

had Article III standing to seek a permanent injunction. See id. at 371.

2. EEOC

“Throughout the last four and a half years of fluid regulatory interpretations

and litigation surrounding Section 1557, the EEOC’s interpretation of Title VII as

applied to employers’ group health plans has stayed static.” Azar, 513 F. Supp. 3d at

-24-
1131 (citing R. Doc. 97, at ¶ 160). Both “before and after Bostock,” “[t]he EEOC

. . . has taken the consistent position that Title VII protects against discrimination

based on gender identity.” Id.

“In line with that stance, the EEOC has pursued enforcement actions against

nonhealthcare employers that categorically exclude coverage for gender transitions

from their health plans.” Id. (citing R. Doc. 97, at ¶¶ 156–59).

II. Discussion

On appeal, the government asks this court to vacate the district court’s

judgment and remand with instructions to dismiss for lack of jurisdiction for three

reasons: (1) the plaintiffs lack standing to challenge HHS’s and the EEOC’s “possible

future enforcement” of Section 1557 and Title VII, respectively; (2) the plaintiffs’

RFRA claims against HHS and the EEOC are not ripe; and (3) the “plaintiffs have not

demonstrated imminent irreparable harm sufficient to justify permanent injunctive

relief.” Appellants’ Br. at 3. 

“This court reviews de novo standing and ripeness determinations, and grants

of summary judgment.” City of Kennett v. EPA, 887 F.3d 424, 430 (8th Cir. 2018).

A “district court’s issuance of a permanent injunction” is reviewed “for abuse of

discretion.” Kennedy Bldg. Assocs. v. CBS Corp., 576 F.3d 872, 876 (8th Cir. 2009).

A. Standing

“Article III standing must be decided first by the court and presents a question

of justiciability; if it is lacking, a federal court has no subject-matter jurisdiction over

the claim.” Schumacher v. SC Data Ctr., Inc., 912 F.3d 1104, 1105 (8th Cir. 2019)

(internal quotation marks omitted). Standing must exist “throughout the case because

to qualify as a case fit for federal-court adjudication, an actual controversy must be

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extant at all stages of review, not merely at the time the complaint is filed.” Id.

(cleaned up).

“The party invoking federal jurisdiction bears the burden of establishing

standing.” Susan B. Anthony List, 573 U.S. at 158 (internal quotation marks omitted).

1. Associational Standing

As an initial matter, the government argues that “the district court erred in

concluding that CBA has associational standing to sue on behalf of its unnamed

members.” Appellants’ Br. at 29. 

The district court determined that CBA had associational standing to sue on

behalf of its unnamed members who receive federal funding. See Azar, 513 F. Supp.

3d at 1137 (“Members on whose behalf suit is brought may remain unnamed.”); id.

(“As for the ability of individual members to sue, the CBA’s verified second amended

complaint confirms that its membership includes Catholic hospitals and other

healthcare entities ‘that receive Medicaid and Medicare payments and participate in

HHS-funded programs.’ That places at least some CBA members on equal footing

with the Religious Sisters of Mercy Plaintiffs.” (quoting R. Doc. No. 97, ¶¶ 55–56)). 

The government argues that “the district court’s conclusion that ‘members on

whose behalf suit is brought may remain unnamed’ is contrary to the Supreme Court’s

requirement that an organization must identify particular members and their injuries

in order to establish associational standing.” Appellants’ Br. at 29–30 (first quoting

Azar, 513 F. Supp. 3d at 1137, then citing Summers v. Earth Island Inst., 555 U.S.

488, 498–99 (2009); Ouachita v. Watch League v. U.S. Forest Serv., 858 F.3d 539,

543 (8th Cir. 2017)). 

-26-
We agree. In Summers, the Court rejected the following “organizational

standing [test]: whether, accepting the organization’s self-description of the activities

of its members, there is a statistical probability that some of those members are

threatened with concrete injury.” 555 U.S. at 497. According to the Court, such a

“novel approach to the law of organizational standing would make a mockery of [the

Court’s] prior cases, which have required plaintiff-organizations to make specific

allegations establishing that at least one identified member had suffered or would

suffer harm.” Id. at 498 (emphasis added) (citing Lujan v. Defenders of Wildlife, 504

U.S. 555, 563 (1983) (holding that organization lacked standing because it did not

“submit affidavits . . . showing, through specific facts . . . that one or more of [its]

members would . . . be ‘directly’ affected” by the allegedly illegal activity); Sierra

Club v. Morton, 405 U.S. 727, 735 (1972) (“Nowhere in the pleadings or affidavits

did the [organization] state that its members use Mineral King for any purpose, much

less that they use it in any way that would be significantly affected by the proposed

actions of the respondents.”); FW/PBS, Inc. v. Dallas, 493 U.S. 215, 235 (1990)

(noting city’s affidavit to establish standing was insufficient because it failed to name

the individuals who were harmed by the challenged program)). 

A court cannot “accept[] the organizations’ self-descriptions of their

membership” because “the court has an independent obligation to assure that standing

exists, regardless of whether it is challenged by any of the parties.” Id. at 499. “While

it is certainly possible—perhaps even likely—that one individual will meet all th[e]

criteria, that speculation does not suffice.” Id. The Court explained that “[s]tanding

. . . requires . . . a factual showing of perceptible harm.” Id. (third alteration in

original) (quoting Lujan, 504 U.S. at 566). Thus, the Court “require[s] plaintiffs

-27-
claiming an organizational standing to identify members who have suffered the

requisite harm.” Id.12

Other than the three named plaintiffs who are CBA members—the Diocese,

Catholic Charities, and CMA—the CBA has otherwise failed to identify members

who have suffered the requisite harm. See id. Accordingly, we hold that the CBA

lacks associational standing to sue on behalf of unnamed members. 

2. Standing: Section 1557

We now turn to whether the Religious Sisters plaintiffs and the remaining CBA

plaintiffs have standing to challenge HHS’s enforcement of Section 1557. The

government argues that the district court erroneously concluded that the plaintiffs

have “standing with respect to their claims against HHS’s enforcement of Section

1557.” Appellants’ Br. at 25. We disagree. 

“To establish Article III standing, a party invoking federal jurisdiction must

show (1) that the plaintiff suffered an injury in fact, (2) a causal relationship between

the injury and the challenged conduct, and (3) that a favorable decision will likely

redress the injury.” Sch. of the Ozarks, Inc. v. Biden, 41 F.4th 992, 997 (8th Cir.

2022). 

12The Court’s “requirement of naming the affected members has never been

dispensed with in light of statistical probabilities, but only where all the members of

the organization are affected by the challenged activity.” Id. at 498–99 (citing NAACP

v. Alabama ex rel. Patterson, 357 U.S. 449, 459 (1958) (all organization members

affected by release of membership lists)). In the present case, the CBA has not argued

that all of its members are affected. 

-28-
Here, the government “doesn’t dispute causation or redressability; thus, ‘the

only real question is whether [the plaintiffs] have suffered an injury in fact.’” RSM

plaintiffs’ Br. at 30 (quoting Telescope Media v. Lucero, 936 F.3d 740, 749 (8th Cir.

2019)). An individual need not be “subject to . . . a threat, an actual arrest,

prosecution, or other enforcement action . . . to challeng[e] the law.” Susan B.

Anthony List, 573 U.S. at 158. Pre-enforcement review is permissible “under

circumstances that render the threatened enforcement sufficiently imminent.” Id. at

159. “Specifically, [the Supreme Court has] held that a plaintiff satisfies the injury-infact requirement where he alleges ‘[(1)] an intention to engage in a course of conduct

arguably affected with a constitutional interest, but [(2)] [arguably] proscribed by a

statute, and there [(3)] exists a credible threat of prosecution thereunder.’” Id.

(quoting Babbitt v. Farm Workers, 442 U.S. 289, 298 (1979)). 

The government has not contested the district court’s conclusion that “the

[p]laintiffs’ conduct implicates constitutional interests” because their “refusal to

perform or cover gender-transition procedures is predicated on an exercise of their

religious beliefs protected by the First Amendment.” Azar, 513 F. Supp. 3d at 1138.

Instead, it argues that the district court erred in concluding that (1) “Section 1557

arguably proscribes the [p]laintiffs’ refusal to perform or cover gender-transition

procedures,” and (2) a credible threat of enforcement exists because the plaintiffs’

“course of action is within the plain text of [the] statute.” Appellants’ Br. at 25, 27

(internal quotation marks omitted). 

In determining whether the plaintiffs’ conduct is arguably proscribed and

whether they face a credible threat of enforcement, we find instructive the Fifth

Circuit’s recent decision in Franciscan Alliance. There, “HHS argue[d] that

Franciscan Alliance’s RFRA claims . . . bec[a]me moot because the 2016 Rule was

replaced by the 2020 Rule.” Franciscan Alliance V, 47 F.4th at 376. The court

concluded that HHS failed to carry its burden “to demonstrate that it is absolutely

-29-
clear the allegedly wrongful behavior could not reasonably be expected to recur.” Id.

(internal quotation marks omitted). First, the court described how “the district court

injunctions, the 2020 Rule, and the 2021 [Notification]” proscribe Franciscan

Alliance’s refusal to perform or cover gender-transition procedures. Id. According to

the court, those sources “combined to threaten Franciscan Alliance in the same way

that the challenged portions of the 2016 Rule did.” Id.

Second, the court demonstrated how Franciscan Alliance faces a threat of

prosecution. See id. According to the court, “HHS [recently] issued the 2022 Notice,

which warned covered entities like Franciscan Alliance that refusing to offer genderreassignment surgeries violates Section 1557.” Id. Furthermore, the court noted,

“HHS has . . . repeatedly refused to disavow enforcement against Franciscan Alliance.

In its brief on appeal, HHS simply says it ‘has not to date evaluated’ whether it will

enforce Section 1557 against Franciscan Alliance—in other words, it concedes that

it may.” Id. The court rejected HHS’s argument “that the district court violated Article

III when it granted Franciscan Alliance a permanent injunction against hypothetical

future Section 1557 enforcement.” Id. at 379. The court acknowledged that “the

[g]overnment’s interest may subtly evolve over time.” Id. But it noted that “[i]f that

hypothetical chance is enough to defeat standing, then plaintiffs could never obtain

injunctive relief to prevent future violations of the Free Speech Clause, the Equal

Protection Clause, or any other lawsuit where means/ends scrutiny is involved.” Id.

To the contrary, the court pointed out, “[c]ourts have issued permanent injunctions

in these contexts countless times.” Id. (citing Brown v. Ent. Merchants Ass’n, 564

U.S. 786, 789 (2011) (affirming permanent injunction in a free speech case); Dep’t

of Texas, Veterans of Foreign Wars of U.S. v. Texas Lottery Comm’n, 760 F.3d 427,

441 (5th Cir. 2014) (same); Adarand Constructors, Inc. v. Pena, 515 U.S. 200, 210

(1995) (plaintiff had standing to seek injunctive relief to prevent future violations of

the Equal Protection Clause); F. Buddie Contracting Co. v. City of Elyria, 773 F.

Supp. 1018, 1033 (N.D. Ohio 1991) (permanently enjoining enforcement of local

-30-
ordinance for violating the Equal Protection Clause)). HHS was unable to “cite a

single case where a court refused to grant a permanent injunction because of the

hypothetical chance that the Government could advance a compelling government

interest sometime in the future.” Id. at 380. The court declined “to be the first [one]

to do so.” Id.

Although the question in Franciscan Alliance was one of mootness, the court

invoked its standing jurisprudence to buttress its conclusion. See id. at 376 (“We have

repeatedly held that plaintiffs have standing in the face of similar prosecutorial

indecision.”). “Indeed,” the court observed, “the burden of proving mootness is

higher than simply showing a lack of standing.” Id. at 377 n.40 (citing Friends of the

Earth, Inc. v. Laidlaw Env’t Servs. (TOC), Inc., 528 U.S. 167, 190 (2000) (noting that

“there are circumstances in which the prospect that a defendant will engage in (or

resume) harmful conduct may be too speculative to support standing, but not too

speculative to overcome mootness”)). “Suffice it to say that if there is an ongoing

dispute giving a plaintiff standing, the case is not moot,” the court explained. Id.

(citing Friends of the Earth, 528 U.S. at 189–92).13 The court reviewed its prior

standing determination in Speech First, Inc. v. Fenves, 979 F.3d 319, 338 (5th Cir.

2020). Id. at 377. In that case, “the defendant vaguely promised to not enforce the

13We, too, have recognized that standing is “[a] close cousin of mootness.”

Noem v. Haaland, 41 F.4th 1013, 1017 (8th Cir. 2022). “[T]he difference between

standing and mootness is merely one of ‘time frame: The requisite personal interest

that must exist at the commencement of the litigation (standing) must continue

throughout its existence (mootness).” Sisney v. Kaemingk, 15 F.4th 1181, 1194 (8th

Cir. 2021) (quoting Arizonans for Official English v. Arizona, 520 U.S. 43, 68 n.22

(1997)). “The doctrines of standing and mootness, properly applied, ensure that

federal courts will decide only concrete disputes and will refrain from publishing

advisory opinions or judicial essays on issues of the day.” Hawse v. Page, 7 F.4th

685, 695 (8th Cir. 2021). 

-31-
challenged policies ‘contrary to the First Amendment’—similar to HHS’s promise to

‘comply with the Religious Freedom Restoration Act . . . and all other legal

requirements.’” Id. (alteration in original) (first quoting Speech First, Inc., 979 F.3d

at 338, then quoting 2021 Notification, 86 Fed. Reg. at 27,985). The court held that

standing existed because the plaintiffs “were within the ‘class whose [conduct] is

arguably restricted,’ and the defendant’s promise was so vague that the scope of

liability was both ‘unknown by the [defendant] and unknowable to those regulated

by it.’” Id. (alterations in original) (quoting Speech First, Inc., 979 F.3d at 338); see

also id. (quoting Pool v. City of Houston, 978 F.3d 307, 310 (5th Cir. 2020) (holding

that plaintiffs had standing to bring an “immediate[]” challenge to a city charter

provision where “[t]he City . . . indicated that it had not yet determined its position

on the Charter requirements’ enforceability”)). Similarly, “HHS has steadfastly

refused to promise that it would not enforce Section 1557 or the 2016 Rule.” Id.

The court also rejected HHS’s reliance on Iowa Right to Life Committee, Inc.

v. Tooker, 717 F.3d 576 (8th Cir. 2013)—a case upon which the government also

relies in the present case. See id.; see also Appellants’ Br. at 24. In Tooker, “there was

no credible threat of enforcement” because “[t]he Eighth Circuit certified the case to

the Iowa Supreme Court, and its opinion was ‘clear’ that the plaintiffs were not

covered by the statute.” Franciscan Alliance V, 47 F.4th at 377 (citing Tooker, 717

F.3d at 585–86). By contrast, the court concluded that a “substantial reason [exists]

to believe that Franciscan Alliance falls within the scope of Section 1557, especially

post-Bostock.” Id.

The foregoing analysis supports our conclusion that the plaintiffs have suffered

an injury-in-fact from the government’s interpretation of Section 1557. See Susan B.

Anthony List, 573 U.S. at 158. While the government argues that the plaintiffs lack

standing because the 2020 Rule “rescinded” the 2016 Rule, see Appellants’ Br. at 23,

the Fifth Circuit expressly rejected this argument in Franciscan Alliance, see 47 F.4th

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at 376. We agree with the Fifth Circuit that “the district court injunctions, the 2020

Rule, and the 2021 [Notification] combined to threaten [the plaintiffs] in the same

way that the challenged portions of the 2016 Rule did.” Id. Collectively, these sources

demonstrate that the plaintiffs’ conduct—their refusal to perform or cover gendertransition procedures—is “arguably proscribed” by Section 1557. Cf. FEC v. Cruz,

142 S. Ct. 1638, 1649 (2022) (“Here, however, appellees seek to challenge the one

Government action that causes their harm: the FEC’s threatened enforcement of the

loan-repayment limitation, through its implementing regulation. In doing so, they

may raise constitutional claims against Section 304, the statutory provision that,

through the agency’s regulation, is being enforced.” (emphases added and omitted)). 

We also reject the government’s argument that the plaintiffs lack injury

because it “has not to date taken a position on whether plaintiffs’ conduct violates the

relevant statutes and has not threatened any enforcement action against plaintiffs.”

Appellants’ Br. at 2; see also id. at 16 (“The central flaw in the district court’s

decision is . . . [that] [t]he court enjoined the government from enforcing the statutes

in a way that the government has not to date indicated that it will enforce them.”); id.

at 24 (“Because the government has not to date concluded that plaintiffs’ conduct

violates the relevant statute, this Court should reject plaintiffs’ attempts to pretermit

the agency’s evaluation of the issues and obtain a preemptive judicial declaration that

HHS may not bring an enforcement action against plaintiffs.”). As the Fifth Circuit

explained, the government’s assertion that “it ‘has not to date evaluated’ whether it

will enforce Section 1557 against [the plaintiffs]” is actually a “conce[ssion] that it

may” do so. Franciscan Alliance V, 47 F.4th at 376. Just as in Franciscan Alliance

where the HHS “repeatedly refused to disavow enforcement against Franciscan

Alliance,” id., so, too, has it refused in the present case. In fact, HHS has promised

(1) “robust enforcement of Section 1557” in the 2016 Rule, 81 Fed. Reg. at 31,440;

and (2) to “vigorously enforce [Section 1557’s] prohibitions on discrimination based

on . . . sex” in the 2020 Rule, 85 Fed. Reg. at 37,175.

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 Furthermore, HHS expressly “decline[d] to adopt commenters’ suggestion that

[it] import Title IX’s blanket religious exemption into Section 1557,” noting that

“Section 1557 itself contains no religious exemption” and that “Title IX and its

exemption are limited in scope to educational institutions.” 2016 Rule, 81 Fed. Reg.

at 31,380 (footnote omitted). Although the 2020 Rule did include a religious

exemption, HHS is enjoined from enforcing it. See Whitman-Walker, 485 F. Supp. 3d

at 64; cf. Sch. of the Ozarks, 41 F.4th at 1000 (“The [Department of Housing and

Urban Development’s] Memorandum does not make the College’s housing policies

unlawful without regard to legal protections for religious liberty [under Title IX].”).

Although the government maintains that it “will comply” with RFRA, Appellants’ Br.

at 24, its promise is “so vague that the scope of liability [is] both ‘unknown by the

[government] and unknowable to [the plaintiffs],’” who are “within the ‘class whose

[conduct] is arguably restricted.’” Franciscan Alliance V, 47 F.4th at 377 (fourth

alteration in original) (quoting Speech First, Inc., 979 F.3d at 338). The government’s

claim that the district court violates Article III by enjoining “hypothetical future

action,” Appellants’ Br. at 3, “proves too much.” Franciscan Alliance V, 47 F.4th at

379. 

Finally, the government cannot identify a long history of nonenforcement

against the plaintiffs and others like them. Cf. Sch. of the Ozarks, 41 F.4th at 1000,

1001 (noting that “HUD has never enforced the Fair Housing Act’s sexdiscrimination prohibition against a college whose housing policies have been

exempted from the prohibition on sex discrimination under Title IX” and “never

enforced the Fair Housing Act’s sex-discrimination prohibition against the College,

even though the agency interpreted the Fair Housing Act to prohibit discrimination

on the basis of sexual orientation and gender identity between 2012 and 2020”). To

the contrary, the plaintiffs have cited enforcement activity in the years prior to the

filing of the operative complaint suggesting that the rule is likely to be enforced

against them. See RSM plaintiffs’ Br. at 37–41; CBA plaintiffs’ Br. at 29–32. 

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For these reasons, we hold that the plaintiffs have satisfied the elements

necessary to establish standing to challenge the government’s interpretation of

Section 1557.

3. Standing: Title VII

“Title VII of the Civil Rights Act of 1964 bans all employers with 15 or more

employees—whether receiving federal funding or not—from engaging in sex

discrimination.” Azar, 513 F. Supp. 3d at 1125–26 (citing 42 U.S.C. § 2000e-2(a),

2000e(b)). The government argues that “[t]he CBA plaintiffs have not demonstrated

any Article III case or controversy with respect to their challenge to EEOC’s

interpretation of Title VII and possible future enforcement efforts against plaintiffs.”

Appellants’ Br. at 35. We disagree. 

As the district court explained, “Akin to the Section 1557 claims, the three-part

injury-in-fact standard . . . continues to control. Applying that standard, the [CBA]

[p]laintiffs’ refusal to cover gender-transition procedures in their health plans stems

from a First Amendment exercise of their religious beliefs.” Azar, 513 F. Supp. 3d at

1141 (citing United States v. Ali, 682 F.3d 705, 709 (8th Cir. 2012) (explaining that

the RFRA safeguards First Amendment free-exercise rights)). Further, Title VII

“quite clearly” proscribes the CBA plaintiffs’ conduct under the EEOC’s

interpretation. Id. In Macy, the EEOC concluded that “[w]hen an employer

discriminates against someone because the person is transgender, the employer has

engaged in disparate treatment ‘related to the sex of the victim,’” in violation of Title

VII. 2012 WL 1435995, at *7 (quoting Schwenk v. Hartford, 204 F.3d 1187, 1202

(9th Cir. 2000)); cf. EEOC v. Fremont Christian Sch., 781 F.2d 1362, 1366 (9th Cir.

1986) (“[R]eligious employers are not immune from liability under Title VII for

discrimination based on sex.” (cleaned up)); Boyd v. Harding Acad. of Memphis, Inc.,

88 F.3d 410, 413 (6th Cir. 1996) (“Title VII . . . applies . . . to a religious institution

charged with sex discrimination.”); Rayburn v. Gen. Conf. of Seventh Day Adventists,

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772 F.2d 1164, 1166 (4th Cir. 1985) (“Title VII does not confer upon religious

organizations a license to make . . . decisions on the basis of race, sex, or national

origin.”). 

The government’s primary argument is that the CBA plaintiffs have failed to

show that “a credible threat of prosecution” exists. See Susan B. Anthony List, 573

U.S. at 159 (internal quotation marks omitted). Specifically, it contends that the CBA

plaintiffs have (1) never “been asked to cover gender-transition services for any

particular employee”; (2) failed to show “that [the] EEOC would likely find

reasonable cause to believe that unlawful discrimination occurred and then exercise

its discretion to bring an enforcement action against Diocese or Catholic Charities

after a failed attempt at voluntary conciliation”; and (3) failed to show “that [the]

EEOC has ever brought an enforcement action in district court against any employer

to challenge the employer’s exclusion of transition procedures in its health plan, let

alone a religious employer that has raised religious objections to such procedures.”

Appellants’ Br. at 37, 39. According to the government, the “EEOC has not taken a

position on how, if at all, Title VII should be enforced against religious employers

that object to providing insurance coverage for gender-transition services”; the

question, it contends, remains “open.” Id. at 39 (citing EEOC Compliance Manual on

Religious Discrimination, Directive 915.063, § 12 (Jan. 15, 2001), available at

https://go.usa.gov/x6bp4 (stating that the “applicability and scope of . . . defenses

based on Title VII’s interaction with the First Amendment or . . . RFRA[] is an

evolving area of the law,” advising EEOC investigators to “take great care” in

situations involving the RFRA, directing EEOC personnel to “seek the advice of the

EEOC Legal Counsel in such a situation,” and noting that “on occasion, the [EEOC]

Legal Counsel may consult as needed with the U.S. Department of Justice”)). 

Contrary to the government’s position, we conclude that the district court

correctly determined that the CBA plaintiffs face a “credible threat” of enforcement

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from the EEOC. As explained supra, the plaintiffs face a credible threat of

enforcement from HHS under Section 1557; in turn, HHS has previously explained

its coordinated effort with the EEOC to “pursue Title VII enforcement actions against

nonhealthcare employers with gender-transition exclusions in their group health

plans.” Azar, 513 F. Supp. 3d at 1126 (citing R. Doc. 97, at ¶ 165). “Where . . . [HHS]

lacks jurisdiction over an employer responsible for benefit design, [HHS] . . . will

refer or transfer the matter to the EEOC and allow that agency to address the matter.”

2016 Rule, 81 Fed. Reg. at 31,432. The date of filing with HHS is “deemed the date

it was filed with the EEOC.” Id. Additionally, “the EEOC has pursued enforcement

actions against nonhealthcare employers that categorically exclude coverage for

gender transitions from their health plans.” Azar, 513 F. Supp. 3d at 1131 (citing

R. Doc. 97, at ¶¶ 156–59). Its pursuit of these enforcement actions, coupled with its

failure to “disavow[] any intent to enforce Title VII’s prohibition on gender-transition

exclusions in health plans against the [religious employers],” lends further support

to the district court’s conclusion that the CBA plaintiffs face a credible threat of

enforcement by the EEOC. Id. at 1142.

B. Ripeness

Having concluded that the plaintiffs have standing to bring their claims, we

next address the government’s argument that the plaintiffs have failed to demonstrate

ripeness for their challenge to HHS’s future enforcement of Section 1557 and the

EEOC’s future enforcement of Title VII. 

Ripeness is a “closely related doctrine” of standing that “originates from the

same Article III limitation.” Sch. of the Ozarks, 41 F.4th at 997 (citing Susan B.

Anthony List, 573 U.S. at 157 n.5). The ripeness doctrine “prevent[s] the courts,

through avoidance of premature adjudication, from entangling themselves in abstract

disagreements over administrative policies, and also to protect the agencies from

judicial interference until an administrative decision has been formalized and its

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effects felt in a concrete way by the challenging parties.” Id. at 997–98 (quoting

Abbott Lab’ys v. Gardner, 387 U.S. 136, 148–49 (1967)). “[T]he complainant must

show both ‘the fitness of the issues for judicial decision and the hardship to the

parties of withholding court consideration’” “[t]o demonstrate that an alleged dispute

is ripe for review.” Id. at 998 (quoting Abbott Lab’ys, 387 U.S. at 149). A case that

“would not benefit from further factual development and poses a purely legal

question not contingent on future possibilities . . . is fit for judicial decision.” Id. “In

this case, standing and ripeness essentially ‘boil down to the same question’ . . . .”

Id. (quoting Susan B. Anthony List, 573 U.S. at 157 n.5). Therefore, it is appropriate

for us to “address the issue [of ripeness] in terms of ‘standing.’” Id. (quoting Susan

B. Anthony List, 573 U.S. at 157 n.5). 

Because we have already held that the plaintiffs have standing to challenge

HHS’s interpretation of Section 1557 and the EEOC’s interpretation of Title VII, we

necessarily hold that their claims are ripe for judicial review. See id.; see also

Franciscan Alliance IV, 553 F. Supp. 3d at 374 (“[T]he [c]ourt concludes that the

current regulatory scheme for Section 1557 ‘clearly prohibits’ Plaintiffs’ conduct,

thus, putting them to the ‘impossible choice’ of either ‘defying federal law’ and

risking ‘serious financial civil penalties,’ or else violating their religious beliefs.”

(citation omitted)). 

C. Irreparable Harm

Finally, the government argues that the district court erred in granting the

plaintiffs permanent injunctive relief because they failed to “demonstrate[] imminent

irreparable harm sufficient to justify permanent injunctive relief against HHS and

EEOC.” Appellants’ Br. at 50.14

14“A permanent injunction requires the moving party to show actual success on

the merits.” Miller v. Thurston, 967 F.3d 727, 735 (8th Cir. 2020) (quoting Oglala

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In Franciscan Alliance V, the Fifth Circuit rejected the argument that “the

district court erred in granting the permanent injunction because Franciscan Alliance

did not satisfy the irreparable harm standard.” 47 F.4th at 380. It held “that the loss

of freedoms guaranteed by . . . RFRA . . . constitute[s] per se irreparable harm.” Id.

(citing Opulent Life Church v. City of Holly Springs, 697 F.3d 279, 294 (5th Cir.

2012)). 

Other circuits are in agreement that “establishing a likely RFRA violation

satisfies the irreparable harm factor.” Hobby Lobby Stores, Inc. v. Sebelius, 723 F.3d

1114, 1146 (10th Cir. 2013) (citing Kikumura v. Hurley, 242 F.3d 950, 963 (10th Cir.

2001) (“[A] plaintiff satisfies the irreparable harm analysis by alleging a violation of

RFRA.”); O Centro Espirita Beneficiente Uniao Do Vegetal v. Ashcroft, 342 F.3d

1170, 1187 (10th Cir. 2003) (same)); see also Jolly v. Coughlin, 76 F.3d 468, 482 (2d

Cir. 1996) (“Courts have persuasively found that irreparable harm accompanies a

substantial burden on an individual's rights to the free exercise of religion under

RFRA.” (citing Alameen v. Coughlin, 892 F. Supp. 440, 447–48 (E.D.N.Y. 1995)

(“[A] finding under RFRA that a regulation creates a substantial burden on an

individual’s exercise of his or her religion constitutes a finding of irreparable harm.”);

Luckette v. Lewis, 883 F. Supp. 471 (D. Ariz. 1995) (holding loss of prisoner’s ability

to practice central tenets of his religion for extended amount of time was irreparable

injury warranting preliminary injunction under RFRA)). 

Sioux Tribe v. C & W Enters. Inc., 542 F.3d 224, 229 (8th Cir. 2008)). Once the

moving party shows actual success on the merits, a court “must then consider three

factors to determine whether a permanent injunction is warranted: ‘(1) the threat of

irreparable harm to the moving party; (2) the balance of harms with any injury an

injunction might inflict on other parties; and (3) the public interest.’” Id. (quoting

Oglala Sioux Tribe, 542 F.3d at 229). Here, the government has challenged only the

district court’s conclusion that the plaintiffs failed to show the threat of irreparable

harm. 

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We agree with these courts and therefore conclude that the district court

correctly held that “intrusion upon the Catholic Plaintiffs’ exercise of religion is

sufficient to show irreparable harm.” Azar, 513 F. Supp. 3d at 1153 (citing Child

Evangelism Fellowship of Minn. v. Minneapolis Special Sch. Dist. No. 1, 690 F.3d

996, 1000 (8th Cir. 2012) (“CEF can demonstrate that it has a high likelihood of

success on the merits of its First Amendment claim, which is likely enough, standing

alone, to establish irreparable harm.”)). 

III. Conclusion

Accordingly, we affirm the district court’s grant of permanent injunctive relief

to the plaintiffs except to the extent it recognizes the associational standing of the

CBA. We remand for further proceedings consistent with this opinion. 

______________________________

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