Overview

• On August 7–8 the EPA sent termination letters to about 60 state, tribal and nonprofit grantees, freezing access to the ASAP reimbursement portal and clawing back unobligated funds.
• The agency said it would honor reimbursement of “allowable costs” already incurred but ordered grantees to return unspent money and file any disputes within a 30-day window.
• Awardees in Michigan, North Carolina, Arkansas and Georgia reported specific grants—including a $156 million Michigan allocation and a $93 million Arkansas award—being rescinded or recalled.
• Nonprofits, state officials and public-interest lawyers have signaled plans to sue, arguing that most of the $7 billion had already been legally obligated under the Inflation Reduction Act.
• Analysts say the cancellation fits a broader Trump administration effort to roll back Biden-era clean-energy programs, from DOE grant reviews to Interior Department land-use directives.