REFERENCE TITLE: equal access; justice; act; repeal

State of Arizona

House of Representatives

Fifty-seventh Legislature

First Regular Session

2025

HCM 2013

Introduced by

Representative Griffin

A Concurrent Memorial

urging Congress to repeal or substantially amend the equal access to justice act.

(TEXT OF BILL BEGINS ON NEXT PAGE)

To the Congress of the United States of America:

Your memorialist respectfully represents:

Whereas, enacted in 1980, the Equal Access to Justice Act (EAJA) allows the award of attorney fees and other expenses to certain individuals, small businesses and other entities that prevail against the federal government in litigation or administrative proceedings if the government's position is not substantially justified.  The governmental entity has the burden to prove its position is substantially justified; and

Whereas, the EAJA's stated purpose is to reduce the deterrent effect of defending against or seeking review of governmental actions; and

Whereas, in fiscal year 2023, federal agencies reported paying more than $115 million in awards of attorney fees and other expenses under the EAJA; and

Whereas, to be eligible, an individual must have a net worth of not more than $2 million, businesses must have a net worth of not more than $7 million and not more than 500 employees and tax-exempt organizations must have not more than 500 employees; and

Whereas, tax-exempt nonprofit organizations do not have a cap on net worth; and

Whereas, over the years, the EAJA has shifted from allowing individuals and small businesses to protect themselves from government overreach to a powerful weapon for large, well-funded special interest nonprofit groups to repeatedly sue the government regarding environmental issues; and

Whereas, nonprofits can recover substantial fees under the EAJA, even if they settle out of court or win only a small part of the case; and

Whereas, nonprofit groups evade the cap on the amount of legal fees that may be recovered.  The base rate of costs may be increased when a case requires attorneys that have distinctive knowledge or a specialized skill necessary for the litigation; and

Whereas, attorneys for environmental-related nonprofits exploit this exception to bilk the federal government for millions of dollars in legal fees and costs. These awards often exceed the actual legal costs; and

Whereas, abuse and misuse of the EAJA stops development and active management of natural resources and instead advances radical ideologies.

Wherefore your memorialist, the House of Representatives of the State of Arizona, the Senate concurring, prays:

1. That the United States Congress entirely repeal or substantially amend the Equal Access to Justice Act to do the following:

(a) Close the loopholes that allow exorbitant fees to be awarded.

(b) Enact an eligibility cap on tax-exempt nonprofit entities' net worth.

(c) Enact a total award cap for a single case.

2. That the Secretary of State of the State of Arizona transmit a copy of this Memorial to the President of the United States Senate, the Speaker of the United States House of Representatives and each Member of Congress from the State of Arizona.