Federal Appeals Court Rules EPA Cannot Block Climate Grants

A divided federal appeals court on Aug. 4 prevented the Trump administration from terminating about $16 billion in Biden-era climate grants.
The court majority ruled that an effort by the U.S. Environmental Protection Agency (EPA) to claw back the funds based merely on a “policy disagreement” probably ran afoul of a mandatory congressional appropriation.
The case goes back to March 2025, when the EPA terminated the grants amid concerns about a lack of oversight and transparency. The program, known as the Greenhouse Gas Reduction Fund or “green bank,” was approved under the 2022 Inflation Reduction Act. The EPA awarded approximately $20 billion in grants to eight entities to finance climate-related projects…. 

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