In a controversial ruling, a U.S. appeals court has cleared the way for the Trump administration’s EPA to cancel more than $16 billion in climate grants. These funds—originally awarded under President Biden’s Inflation Reduction Act—were intended to help nonprofits like Climate United Fund, Coalition for Green Capital, Power Forward Communities, Inclusiv, and Justice Climate Fund roll out clean energy projects and cut greenhouse gas emissions nationwide. The grants were part of the Greenhouse Gas Reduction Fund, a program seen as one of the Biden administration’s biggest climate investments.
The 2–1 decision, led by judges appointed under Trump, overturned a lower court ruling that had blocked the EPA from pulling back the money. The majority held that the EPA has the discretion to terminate the grants, framing the dispute as a contractual matter rather than a congressional overstep. But critics argue that this decision undermines both Congress’s climate authority and frontline communities who were counting on these funds for renewable energy, cleaner air, and green jobs. For now, the ruling throws a major roadblock in America’s path to its climate goals, raising urgent questions about the stability of federal climate funding. More