06/24/2026
Important USDA/APHIS and AWA Update
The USDA/APHIS has recently taken the position that when a license renewal application is denied under the Animal Welfare Act (“AWA”), the applicant immediately becomes “unlicensed” during the pendency of any appeal. In practice, this means the agency treats the license as terminated before a final adjudication has occurred.
We believe this position is contrary to the Administrative Procedure Act (“APA”) and raises serious due process concerns.
Under the APA, federal licensing actions are governed by 5 U.S.C. § 558(c), which provides important procedural protections for license holders. The statute states that when a licensee has made a timely and sufficient application for renewal, the existing license does not expire until the agency has made a final determination on the application.
This language exists for a reason. Congress recognized that agencies should not be permitted to effectively shut down a regulated business before the licensee has exhausted its administrative remedies. Otherwise, the appeal process becomes meaningless. A license holder who is forced to cease operations immediately upon an initial denial may suffer irreparable financial harm long before any Judicial Officer or federal court has an opportunity to review the agency’s decision.
The issue becomes especially concerning in USDA licensing cases because the agency often treats the denial itself as immediately operative, even while an appeal remains pending within the Department. In effect, APHIS acts as though the matter is already final before the adjudicative process has concluded.
The APA was designed to prevent precisely this type of administrative overreach.
Courts interpreting § 558(c) have repeatedly recognized that the provision protects continuity of operations where a timely renewal application has been filed. The purpose is to preserve the status quo until the agency’s decision-making process is complete. Agencies cannot simply bypass these protections by labeling the action a “renewal denial” rather than a suspension or revocation.
This issue carries enormous consequences for USDA licensees, exhibitors, breeders, dealers, and animal facilities across the country. If agencies can terminate licenses before appeals are finalized, then administrative due process becomes little more than an illusion.
The rule of law requires more. Administrative agencies must follow the APA just as regulated parties must follow agency regulations.