In an afternoon hearing on December 20, 2016, U.S. District Court Judge Reggie B. Walton denied the motion of the Accrediting Council for Independent Colleges and Schools ("ACICS") seeking a temporary restraining order ("TRO") to stay the decision of the U.S. Department of Education ("ED" or the "Department") terminating ACICS's status as a federally recognized accrediting agency.

Judge Walton has not yet ruled on the merits of ACICS's case or its motion for a preliminary injunction, but the denial of the TRO could be a difficult hurdle to overcome. His denial of the TRO – generally considered a short-term, emergency form of relief reserved for exceptional circumstances – rested primarily on what he considered to be a failure to demonstrate "irreparable harm" to ACICS. ACICS is requesting expedited discovery as well as an in-depth hearing on its motion for a preliminary injunction.

In the meantime, because the Department's termination decision is not stayed absent a court order (as explained in our prior alert), this means ACICS continues to lack federal recognition, and there is no legal obstacle to ED's implementation of the termination decision or the imposition of additional conditions for the continued receipt of Title IV funds, which for most ACICS schools must be agreed to this week.

Please feel free to reach out with any questions.