Court unfreezes $20B in federal climate grants

A U.S. Court of Appeals ruled that the Trump administration potentially violated the Inflation Reduction Act by attempting to claw back grants awarded under the Greenhouse Gas Reduction Fund program.

1 minute read

August 6, 2026, 5:00 AM PDT

By Diana Ionescu @aworkoffiction


Republican candidate for Governor of New York Lee Zeldin speaks at campaign stop at American Legion Post in Thornwood on October 31, 2022.

EPA Chief Lee Zeldin. | lev radin / Shutterstock

The U.S. Court of Appeals for the District of Columbia Circuit overturned a decision allowing the Trump administration to rescind $20 billion in climate-related grants, reports Robin Griggs Lawrence in Smart Cities Dive.

The court said the EPA "likely violated the Inflation Reduction Act" when it attempted to terminate grants awarded under the Greenhouse Gas Reduction Fund program.

"The grants were being used to fund 'projects across the United States that support domestic clean energy development, build healthy and affordable housing, accelerate American-made electric vehicle manufacturing, and save hard-working Americans money on their bills,' Climate United said in a March 8 lawsuit filed after EPA froze the funding." Six of the 10 judges on the panel said the EPA could not terminate the program "based solely on a policy disagreement." 

According to Lawrence, "The court leaves open what the EPA can do next, stating it is evenly divided on whether the temporary restrictions on the EPA should continue based on the remaining legal arguments presented to them."

Wednesday, August 5, 2026 in Smart Cities Dive

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