US Appeals Court Blocks EPA Freeze on $20 Billion Climate Grants

A U.S. appeals court ruled Tuesday that the Environmental Protection Agency cannot freeze approximately $20 billion in clean energy grants, delivering a defeat to the Trump administration. The decision by the divided D.C. Circuit Court restored an injunction against EPA Administrator Lee Zeldin's termination of the grants. The grants, awarded during the Biden administration, were intended to reduce greenhouse gas emissions and fund renewable energy projects, particularly in underserved communities. The money came from the Greenhouse Gas Reduction Fund, a $27 billion program established by the 2022 Inflation Reduction Act, which no Republicans supported. Zeldin had sought to freeze the funds in March 2025, citing policy misalignment and potential fraud concerns. The majority ruled that terminating the grants "based solely on a policy disagreement" likely violated the law, while six judges upheld the specific grant provisions. The EPA is reviewing the decision and may appeal to the Supreme Court. Four judges dissented, citing Congress's repeal of the grant program's authorizing section in last year's One Big Beautiful Bill Act.