Signal US Appeals Court Rules EPA Cannot Block Billions in Climate Grants

Summary

A divided panel of the U.S. Court of Appeals in Washington, D.C. ruled that the Environmental Protection Agency cannot freeze about $20 billion in clean energy grants awarded to several nonprofit groups, handing the Trump administration a defeat, U.S. News reported on August 4, 2026, citing the Associated Press. The decision restores an April 2025 injunction against EPA Administrator Lee Zeldin's move to terminate the grants, which were awarded under the Biden administration to reduce greenhouse gas emissions. The funds, tied to the National Clean Investment Fund and Clean Communities Investment Accelerator entities, come from the $27 billion Greenhouse Gas Reduction Fund established by Congress in the 2022 Inflation Reduction Act and were intended to help finance renewable energy products, including in communities that have lacked access to green financing. The majority found that EPA's attempt to terminate the grants and claw back funds 'based solely on a policy disagreement' likely violated the Inflation Reduction Act. EPA's next step could be an appeal to the U.S. Supreme Court.