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Judge Blocks Trump Administration’s Freeze on $20 Billion in Climate Grants

Federal court orders disbursement of funds allocated under the Inflation Reduction Act, rejecting claims of fraud and abuse.

FILE - A bridge along Interstate 26 is destroyed in the aftermath of Hurricane Helene, Oct. 4, 2024, in Erwin, Tenn. (AP Photo/Jeff Roberson, File)
The headquarters of the United States Environmental Protection Agency (EPA) in Washington, D.C., U.S., February 18, 2025. REUTERS/Kent Nishimura/File Photo
Providence - United States District Court for the District of Rhode Island.

Overview

  • U.S. District Judge Tanya Chutkan issued a preliminary injunction preventing the Trump administration from halting or clawing back $20 billion in Biden-era climate grants.
  • The ruling requires Citibank to release frozen funds to nonprofit groups by Thursday, enabling them to resume clean energy and climate resiliency projects.
  • Judge Chutkan found the EPA's actions to freeze the grants arbitrary, citing a lack of evidence supporting claims of waste, fraud, or abuse.
  • The Greenhouse Gas Reduction Fund, established in 2022, was designed to finance clean energy initiatives, particularly in low-income communities.
  • The EPA and DOJ have appealed the decision, leaving the long-term status of the grants uncertain as litigation continues.