Pete v. SBA

Case: 25-40791 Document: 22-1 Page: 1 Date Filed: 03/10/2026

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit ____________ FILED March 10, 2026 No. 25-40791 ____________ Lyle W. Cayce Clerk David R. Pete,

Plaintiff—Appellant, versus

Small Business Administration; Treasury Offset

Division,

Defendants—Appellees. ______________________________

Appeal from the United States District Court for the Eastern District of Texas USDC No. 1:25-CV-223 ______________________________

Before Jones, Duncan, and Douglas, Circuit Judges.

Per Curiam: *

In May 2025, David Pete sued the Small Business Administration (SBA) and the Treasury Department’s Treasury Offset Program, alleging that they unlawfully executed a federal garnishment against his disability benefits in violation of various statutory protections and due process. The magistrate judge recommended sua sponte dismissal under Rule 12(h)(3) Case: 25-40791 Document: 22-1 Page: 2 Date Filed: 03/10/2026

No. 25-40791 because (1) Pete failed to identify any waiver of federal sovereign immunity permitting suit against the SBA, and (2) the Treasury Offset Program— mislabeled as the Treasury Offset Division—is a government program, not a suable government entity. Pete objected. The district court agreed with the magistrate judge and therefore overruled Pete’s objections, adopted the magistrate judge’s recommendation, and dismissed the claims without prejudice for lack of subject-matter jurisdiction. Pete appeals.

Having reviewed the record and the briefing, we find no reversible error. AFFIRMED.