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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.

FILE - Former Rep. Lee Zeldin, R-N.Y., President-elect Donald Trump's pick to head the Environmental Protection Agency, appears before the Senate Environment and Public Works Committee on Capitol Hill, Jan. 16, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
Signage at the headquarters of the United States Environmental Protection Agency (EPA) in Washington, D.C., U.S., February 18, 2025. REUTERS/Kent Nishimura/File Photo
FILE - Vice President JD Vance, right, and Ohio Gov. Mike DeWine, left, listen as Environmental Protection Agency administrator Lee Zeldin, center, speaks in East Palestine Fire Station on Feb 3, 2025, in East Palestine, Ohio, Feb. 3, 2025. (AP Photo/Gene J. Puskar, File)
EPA Administrator Lee Zeldin.

Overview

  • 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.