A US appeals court has ruled in favor of the Trump administration, allowing it to terminate over $16 billion in federal grants awarded to climate change nonprofits.
The decision, handed down by the US Appeals Court for the District of Columbia, overturns a lower court’s ruling that prevented the grants from being revoked.
The grants were part of the Inflation Reduction Act, a landmark legislation passed in 2022 that included the single biggest investment in climate change initiatives in US history.
The funding was earmarked for the Greenhouse Gas Reduction Fund, a program designed to finance “green bank” projects aimed at reducing air pollution, lowering greenhouse gas emissions, and building clean-energy infrastructure.
The Trump administration, led by Environmental Protection Agency (EPA) Administrator Lee Zeldin, froze the grants in February, denouncing them as an example of government waste.
Zeldin claimed that the funds were being irresponsibly allocated to far-left activist groups. “The days of irresponsibly shoveling boatloads of cash to far-left activist groups in the name of environmental justice and climate equity are over,” he said.
The appeals court voted 2-1 to overturn the lower court’s decision, with Judge Neomi Rao, a Trump appointee, writing that the lower court did not have jurisdiction to hear claims related to the grant termination.
Rao stated that claims of arbitrary grant termination are essentially contractual and should be heard by the Court of Federal Claims.
Judge Cornelia Pillard, appointed by former President Barack Obama, dissented, arguing that the rollback of the federal grants was a political action taken to reflect the Trump administration’s opposition to green-energy initiatives.
The Climate United Fund, one of the groups fighting for access to the funds, expressed disappointment with the court’s decision.
“While we are disappointed by the panel’s decision, we stand firm on the merits of our case: EPA unlawfully froze and terminated funds that were legally obligated and disbursed,” said Beth Bafford, CEO of the Climate United Fund. “This is not the end of our road,” she added, indicating that the group will continue to pursue its case.
The ruling has significant implications for climate change initiatives in the US, as it allows the Trump administration to block funding for projects aimed at reducing greenhouse gas emissions and promoting clean energy.
The decision is part of a broader effort by the Trump administration to roll back environmental regulations and promote fossil fuel development.