Overview

• A federal appeals court issued a partial stay on Judge Tanya Chutkan’s order to unfreeze $14 billion of climate funds allocated under the Inflation Reduction Act’s Greenhouse Gas Reduction Fund.
• The Trump administration had frozen the grants, citing unsubstantiated claims of waste, fraud, and abuse, which the EPA failed to provide evidence for in court.
• Judge Chutkan’s ruling earlier this week had required Citibank to release the funds, but the stay allows the court time to review the case further.
• Nonprofit organizations and states argue the freeze disrupted critical climate and infrastructure projects, including solar installations and energy efficiency upgrades in underserved communities.
• The ongoing legal battle underscores broader disputes over executive authority, congressional power, and the operational impact on federally funded programs.