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EPA cannot block billions in climate grants, US appeals court rules

The court said the Trump administration wrongly ended the program, but a hold delays nonprofit access while the Environmental Protection Agency seeks review.

  • On Tuesday, a divided appeals court in Washington blocked the EPA from freezing about $20 billion in clean energy grants, dealing a defeat to the Trump administration's efforts to dismantle Biden-era climate programs.
  • Congress established the $27 billion Greenhouse Gas Reduction Fund in 2022 under the Inflation Reduction Act to finance renewable energy projects and energy-efficient buildings in underserved communities.
  • EPA Administrator Lee Zeldin attempted to terminate the grants in March 2025, citing fraud and waste concerns, but the court restored an injunction blocking his decision to freeze the funds.
  • The majority ruled that terminating grants 'based solely on a policy disagreement' likely violated the Inflation Reduction Act, though funds remain on hold for several days pending potential appeals.
  • EPA officials are reviewing the decision and may appeal to the Supreme Court, while some judges noted Congress passed a law last year repealing the 2022 grant program statute.
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The spokesman-Review broke the news in Spokane, United States on Tuesday, August 4, 2026.
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