Forthwith: Federal Circuit Issues Mandates in V.O.S. Selections, Clearing the Way for $175 Billion Refund Reckoning

"On February 20, 2026, the Supreme Court affirmed the Federal Circuit's en banc ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. Learning Resources, Inc. v. Trump, 607 U.S. ___ (2026); Trump v. V.O.S. Selections, Inc., 607 U.S. ___ (2026)."

"The case now returns to the Court of International Trade (CIT), which faces the formidable task of overseeing what could be the largest government refund obligation in American history: an estimated $175 billion in IEEPA tariff collections that the nation's highest court has declared unlawful."

"Former US Solicitor Neal Katyal (now with Milbank), representing the V.O.S. plaintiffs, filed the motion on February 24, arguing that the Supreme Court's judgment satisfied the express condition this Court had set for releasing the mandate and that every day of delay inflicted real harm on the small businesses awaiting refunds."

The Federal Circuit's en banc ruling on tariff authority has reached the Supreme Court, which affirmed that the President cannot use the International Emergency Economic Powers Act to impose tariffs. The Federal Circuit subsequently dissolved its stay, allowing its mandate to issue immediately. This decision returns the case to the Court of International Trade, which must now oversee what could be the largest government refund obligation in U.S. history, estimated at $175 billion in unlawful IEEPA tariff collections. The pace of refunds remains contested, with plaintiffs' counsel arguing for immediate implementation while the government seeks delays to allow political branches time to respond.

Read at Patently-O