Federal Judge Blocks EPA's Termination of $20 Billion Climate Grants

The court's temporary restraining order keeps funds frozen while legal challenges and investigations into the Greenhouse Gas Reduction Fund proceed.

U.S. District Judge Tanya Chutkan issued a temporary restraining order halting the EPA's termination of $20 billion in climate grants, citing insufficient evidence and due process violations.
The grants, part of the Greenhouse Gas Reduction Fund under the 2022 Inflation Reduction Act, were designed to fund clean-energy projects, especially in underserved communities.
The EPA, led by Administrator Lee Zeldin, claimed the terminations were due to concerns about fraud and waste but failed to provide substantial evidence to support these allegations.
The funds remain frozen in Citibank accounts, preventing both the EPA from reclaiming them and the nonprofits from accessing them during ongoing litigation.
Nonprofits involved in the lawsuit argue that the fund freeze threatens their operations, including layoffs and disruptions to clean-energy projects across the United States.