Court Blocks EPA From Canceling $20 Billion Climate Grants

The U.S. Court of Appeals for the District of Columbia Circuit ruled Tuesday that the Trump administration improperly terminated approximately $20 billion in clean energy grants. The court restored an April 2025 injunction, blocking the Environmental Protection Agency from clawing back funds from the Greenhouse Gas Reduction Fund that were awarded to eight nonprofit groups during the Biden administration.

Lee Zeldin, the EPA Administrator, had frozen the funds in early 2025, alleging the program was a case of waste, fraud, and abuse. However, a 10-judge panel found that the agency's actions were likely based on policy disagreements rather than legal grounds, which would violate the Inflation Reduction Act. Previous findings by U.S. District Judge Tanya Chutkan and investigations by the FBI and Justice Department noted a lack of evidence to support the fraud claims.

Nonprofits including Climate United and the Coalition for Green Capital praised the ruling, stating the EPA's attempt to dismantle the National Clean Investment Fund was unlawful. The decision is currently on a temporary hold to allow the EPA to decide whether to seek intervention from the U.S. Supreme Court. If the agency does not appeal within seven days, the freeze will be eliminated, allowing recipients to resume operations and payroll.