I'm confused by the motion for partial dismissal.
1. Is Allen entitled to any existing records that pertain to Lolo Soetero and Stanley Dunham, because they are deceased?
Yes, apparently, at least some. See Exhibit F in (Attachment# 1-Exhibit Defs.' Exhibits A-J
With respect to your request for records pertaining to the deceased Stanley Ann Dunham, the USCIS
observes that, according to your request and appeal, Ms. Dunham was a native-born U.S. citizen; as
such, the USCIS would not be expected to maintain an alien file regarding her. Nonetheless, the
USCIS has, at its discretion, conducted a search of the Alien File/Centra/Index System for records
maintained under, and retrievable by reference 10, that name and possible associated aliases. That
search failed to uncover any responsive records. The USCIS has also commenced a search for
records maintained under, and retrievable by reference to, the name Lola Soetoro (also deceased). At such time as records pertaining to Lola Soetoro are located, the USCIS will disclose all
nonexempt, non.privileged portions of the record to you. To the extent that you seek official records
pertaining to the administration of U.S. passport operations, such records are generated and
controlled by the U.S. Department of State. Any request for access to such information, therefore,
should be filed with that agency. Records of international border crossings (entry/exit records) are
generated and maintained by U.S. Customs and Border Protection; requests for such information
should be filed with that agency.
 Because both these individuals are widely known to be deceased, the USCIS waives, at its discretion, your obligation to provide proof of death. See 6 C.F.R. § 5.3.
2. The DOJ's basis for moving to partially dismiss is the exhaustion of administrative remedies doctrine. They apparently believe that the FOIA request as to President Obama can be dismissed on the pleadings because he is alive, but that Soetero/Dunham records are more appropriate for summary judgment proceedings presumably because they're deceased. Why?
I don't know. The Motion reads (fn 4):
Because Defendants’ privacy-waiver regulations do not apply to deceased persons, Defendants do not seek to dismiss Allen’s claims insofar as they relate to records concerning Stanley Dunham or Lolo Soetoro. These records are beyond the scope of this motion to dismiss and will be addressed in a later motion for summary judgment.
... i can only speculate that they can get motion to dismiss as to Obama, because of dismissal is appropriate for failure to abide by the regulations (by obtaining Obama's consent). Since consent is not
required of deceased persons, they can't assert that defense, but plan to assert a claim for summary judgment. Which, I know, is restating what they said and not providing any more clarification, but ... that's the best I can come up with.