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Appeals Court Questions Shifting Reasons for Trump's EPA Killing Clean Energy Contracts

The D.C. Circuit court is reviewing if EPA lawfully halted $20 billion in grants to nonprofits amid fraud allegations and congressional rescission of authorizing law.

  • During Tuesday's en banc rehearing, the U.S. Court of Appeals for the D.C. Circuit questioned both the Trump administration and nonprofits over the $20 billion Greenhouse Gas Reduction Fund, with judges asking about the fund's allocation and legal disputes.
  • Amid questions about jurisdiction, judges noted Congress rescinded part of the law last year after the funds were awarded in August 2024 and frozen in February 2025.
  • EPA officials alleged mismanagement and possible fraud while defending freezes and investigations, after billions were placed in a Citibank account for Climate United Fund and other nonprofits, which the agency froze.
  • A prior three-judge panel said the dispute belongs in federal claims court and limited remedies to monetary awards, overturning U.S. District Judge Tanya Chutkan's order, which remains stayed pending appeal.
  • With $20 billion allocated to finance tens of thousands of clean-energy and environmental-justice projects, the court's ruling will determine control over the funds, which were frozen after Congress last year rescinded part of the law.
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Appeals court questions shifting reasons for Trump's EPA killing clean energy contracts

A federal appeals court is weighing whether the Trump administration unlawfully shut down a $20 billion green bank program and froze money meant for climate nonprofits.

·United States
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WPLG broke the news in Miami, United States on Tuesday, February 24, 2026.
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