Court Rules Trump Administration Improperly Terminated Green Bank Funding

The U.S. Court of Appeals for the District of Columbia ruled Tuesday that the Trump administration improperly terminated billions of dollars in funding for the Greenhouse Gas Reduction Fund. This $20 billion green bank was established under the Inflation Reduction Act to support clean energy projects through a coalition of nonprofits, including the Climate United Fund.

Lee Zeldin, the Environmental Protection Agency Administrator, had frozen the funds and canceled grants based on suspected waste, abuse, and potential fraud. However, the court found that the EPA likely violated the law by basing these cancellations on policy disagreements. This follows a prior finding by U.S. District Judge Tanya Chutkan that the agency failed to provide evidence of fraud to justify the termination.

The ruling favors the nonprofits and addresses whether the administration can legally claw back funds already disbursed into accounts. The decision is currently on hold to allow the EPA to seek intervention from the Supreme Court.