Overview

• In a 2–1 ruling, the appeals court vacated Judge Tanya Chutkan’s injunction and allowed the EPA to move forward with terminating the awards.
• Judges Neomi Rao and Gregory Katsas held that challenges to grant terminations are contractual and must be brought in the U.S. Court of Federal Claims.
• Judge Cornelia Pillard dissented, arguing the EPA provided no credible justification and that the ruling undermines Congress’s power of the purse.
• About $16 billion awarded under the Inflation Reduction Act remains frozen in Citibank accounts as parallel investigations and litigation continue.
• Nonprofits including Climate United, Coalition for Green Capital and Power Forward Communities signaled they will seek further review, but immediate access to funds now appears unlikely.