Federal court blocks Trump administration from ending climate grants

A divided federal appeals court ruled that the Trump administration improperly terminated $8 billion in clean energy grants issued under the Inflation Reduction Act.3,4,5,6 The grants were established under the Biden-era Inflation Reduction Act to boost clean energy projects.6 The D.C. Circuit Court of Appeals reinstated the funds, reversing the Trump administration's decision to cancel them.3,5,6

The ruling was handed down by a closely divided appeals court, indicating a split among judges.5 The Environmental Protection Agency (EPA) had attempted to cancel the grants as part of broader climate policy changes.3,4 The decision represents a setback for the Trump administration's efforts to roll back Biden-era climate initiatives.5

The case was brought by a coalition of nonprofits that were selected to administer the grants under the Biden administration.3 The appeals court found that the EPA likely acted unlawfully in terminating the grants.4 The ruling does not address the merits of the clean energy projects but focuses on the legality of the termination process.6

The decision comes amid ongoing legal challenges between the Trump administration and states over environmental and social policies.1,2