Judges Uphold Trump EPA’s Cancellation of Inflation Reduction Act Grants to Nonprofits

📅 Published: 9/2/2025
🔄 Updated: 9/2/2025, 10:30:53 PM
📊 15 updates
⏱️ 11 min read
📱 This article updates automatically every 10 minutes with breaking developments

On Tuesday, a federal appellate court upheld the Trump-era Environmental Protection Agency’s (EPA) decision to cancel billions of dollars in Inflation Reduction Act (IRA) grants awarded to nonprofits, affirming the agency’s authority to terminate these funding agreements despite previous district court rulings deeming the cancellations "arbitrary and capricious." The decision marks a significant legal victory for the EPA under Administrator Lee Zeldin, who argued that the grants no longer aligned with the agency’s priorities and raised concerns about potential fraud, although no concrete evidence was presented[1][3].

The legal dispute centers on approximately $20 billion in cl...

The legal dispute centers on approximately $20 billion in climate-related grants awarded by the EPA in August 2024 to eight nonprofits involved in environmental and climate justice projects. These grants were authorized under the IRA and aimed at supporting community-based initiatives such as solar power development, pollution reduction, and climate resilience. Among the affected organizations were Climate United and Power Forward, which had already committed hundreds of millions of dollars to projects in states like Oregon, Idaho, and Arkansas. The freeze on these funds, enforced with cooperation from the FBI and the EPA inspector general who instructed Citibank to freeze accounts holding the grant money, has left these groups struggling to fulfill contractual obligations, including paying contractors[1].

The appellate court's majority opinion, authored by two Trum...

The appellate court's majority opinion, authored by two Trump-appointed judges, sided with the EPA, emphasizing the agency’s discretion in managing and terminating grants to ensure proper oversight. The court rejected arguments from the nonprofits that the Inflation Reduction Act mandated full spending of the $20 billion by a specific deadline, clarifying that while funds were appropriated to remain available until September 30, 2024, the statute did not prohibit the EPA from canceling grants after that period. The judges also cited an undercover video from Project Veritas—an organization known for releasing selectively edited conservative-leaning videos—as partial support for concerns over grant management[1][3].

This ruling starkly contrasts with the position of the coali...

This ruling starkly contrasts with the position of the coalition of nonprofits, Tribes, and local governments that had sued the Trump EPA for unlawfully terminating the Environmental and Climate Justice (ECJ) Grant programs. Plaintiffs and advocacy groups, including Earthjustice and the Southern Environmental Law Center, argue that the cancellations violate federal law, disrupt vital community projects aimed at reducing pollution and bolstering climate resilience, and undermine Congressional intent embedded in the IRA. They contend that these grants were lawfully awarded and that the EPA’s abrupt termination is an unconstitutional breach of administrative law and separation of powers principles[2][4].

Advocates emphasize that the ECJ programs funded critical lo...

Advocates emphasize that the ECJ programs funded critical local efforts such as air quality monitoring, community pollution notifications, urban tree planting, lead pipe replacements in water systems, and resilience projects against extreme weather. The termination of these programs leaves vulnerable communities exposed to environmental hazards and climate impacts. Earthjustice’s senior attorney Hana Vizcarra expressed disappointment with the court's dismissal of their challenge but affirmed ongoing efforts to seek justice and restore the grants[2][4].

The dispute highlights a broader policy and ideological divi...

The dispute highlights a broader policy and ideological divide over environmental justice and climate funding priorities. Under the Trump administration’s second term, EPA leadership, including Administrator Lee Zeldin, dismissed environmental justice initiatives as politically motivated, often referring to them as "leftist buzzwords." This stance sharply diverged from the Biden administration’s approach, which had expanded environmental justice programs under the IRA with unprecedented funding and political backing[5].

As the legal battle continues, the fate of these IRA-funded...

As the legal battle continues, the fate of these IRA-funded community grants remains uncertain. The EPA has signaled intentions to recommit funds, but recent repeal of related statutes like the Greenhouse Gas Reduction Fund complicates the agency's authority to reallocate these resources. Meanwhile, affected communities and environmental groups continue to advocate for restoration of funding to sustain critical climate and environmental justice work across the United States[1][3][4].

🔄 Updated: 9/2/2025, 8:10:45 PM
An appellate court ruled 2-1 that the Trump-appointed EPA administrator Lee Zeldin lawfully canceled $20 billion in Inflation Reduction Act grants to nonprofits, overturning a prior injunction[2][3]. The ruling emphasized the EPA’s authority to ensure "proper oversight and management" of funds amid claims of fraud, despite a district court previously deeming Zeldin’s actions "arbitrary and capricious"[2]. Key grantees like Climate United and Power Forward had committed $392 million and $539 million respectively to clean energy projects, but the ruling allows the EPA to halt or claw back these funds, significantly impacting ongoing solar and affordable housing initiatives in over 30 states[1][2].
🔄 Updated: 9/2/2025, 8:20:51 PM
Judges upheld the Trump EPA’s cancellation of $20 billion in Inflation Reduction Act grants to nonprofits, sparking strong public backlash. Critics like Senator Bernie Sanders condemned the move as illegal and harmful to over 900,000 low- and moderate-income households relying on programs such as Solar for All, which aimed to reduce their electric bills[1][2]. Environmental groups affected by the funding freeze reported millions in stalled clean energy projects, with Power Forward citing an inability to pay contractors due to the frozen $539 million in grants[2].
🔄 Updated: 9/2/2025, 8:30:51 PM
A U.S. appeals court upheld the Trump EPA's cancellation of $20 billion in Inflation Reduction Act climate grants awarded to nonprofits, a move that risks slowing international momentum on clean energy funding and climate justice initiatives[2][3][4]. The ruling follows EPA Administrator Lee Zeldin’s freeze and termination of grants intended for projects benefiting low-income communities, which had ripple effects on $392 million in solar projects in Oregon, Idaho, Arkansas, and other states supporting global climate goals[2]. Internationally, this decision has drawn concern from environmental advocates who view cuts to U.S. climate funding as undermining global cooperative efforts to combat climate change, though no formal government-level responses have been documented to date.
🔄 Updated: 9/2/2025, 8:40:49 PM
Judges upheld the Trump EPA’s cancellation of $20 billion in Inflation Reduction Act grants to nonprofits, validating EPA Administrator Lee Zeldin’s claim of lacking statutory authority to continue the funding. This ruling disrupts the competitive landscape by retracting federal support from over 60 nonprofits, including Climate United and Power Forward, which had committed nearly $1 billion collectively to renewable projects, leaving many contractors unpaid and project development stalled. The court majority cited the need for "proper oversight and management" of grants, relying in part on a controversial undercover video as justification[2].
🔄 Updated: 9/2/2025, 8:50:49 PM
Following the appellate court's decision upholding the EPA's cancellation of $20 billion in Inflation Reduction Act grants to nonprofits, market reactions reflected concerns over the renewable energy sector's near-term funding. Shares of solar and clean energy companies like those involved in related projects experienced modest declines, with some dropping around 2-3% on Tuesday, September 2, 2025, as investors reassessed the impact of the grant cancellations on project pipelines[2]. The ruling also triggered a freeze on funds previously allocated to nonprofits, intensifying uncertainties in associated contractor payments and financial flows within the clean energy finance market[2].
🔄 Updated: 9/2/2025, 9:00:52 PM
Judges upheld the Trump EPA’s cancellation of nearly $16 billion in Inflation Reduction Act grants to nonprofits, sparking sharp criticism from consumer and public advocates. Climate United, which had committed $392 million in projects—including $63 million for solar power in Oregon and Idaho—called the ruling “a devastating blow to communities depending on clean energy investment.” Power Forward highlighted that the freeze left it unable to pay contractors, raising concerns about job losses and stalled renewable initiatives. Public reaction on social media echoed frustration, with many condemning the court decision as a setback to climate progress and accountability[1][3].
🔄 Updated: 9/2/2025, 9:10:56 PM
Judges have upheld the Trump EPA’s cancellation of $20 billion in Inflation Reduction Act grants awarded competitively to eight nonprofits, including Climate United and Power Forward, significantly altering the nonprofit climate funding landscape[1][2]. This ruling enables the EPA to reallocate or withhold grants despite prior commitments of $392 million and $539 million in projects by these organizations, disrupting their ongoing solar and climate initiatives across states like Oregon, Idaho, Arkansas, and beyond[1]. EPA Administrator Lee Zeldin cited concerns about fraud and mismanagement as justification, and the court emphasized the government's prerogative to ensure “proper oversight and management” of such funds[1][5].
🔄 Updated: 9/2/2025, 9:20:52 PM
An appellate court upheld the Trump EPA’s cancellation of $20 billion in Inflation Reduction Act grants to nonprofits, ruling the agency acted within its authority amid concerns of self-dealing and mismanagement[2][3]. EPA Administrator Lee Zeldin cited well-documented issues like conflicts of interest and unqualified recipients, with the court referencing evidence including a controversial "gold bars" video to justify termination and stricter oversight[3]. The grants had funded projects such as $63 million in solar developments in Oregon and Idaho and $31.8 million in Arkansas, with some nonprofits like Power Forward reporting $539 million committed before the freeze halted contractor payments[2].
🔄 Updated: 9/2/2025, 9:30:52 PM
An appellate court upheld the Trump EPA's cancellation of nearly $20 billion in Inflation Reduction Act grants to multiple U.S. environmental nonprofits, reversing a prior ruling that had blocked the terminations and allowing the administration to freeze and claw back funds intended for climate projects including $392 million in solar developments and $539 million in contractor payments[1][2][3]. Internationally, this decision has raised concerns among global climate advocates about U.S. commitment to addressing climate change, as the canceled grants were part of significant clean energy investments targeting low-income communities and cutting-edge renewable projects, potentially undermining the U.S. position in global climate leadership ahead of upcoming international climate summits[1][2]. The ruling referenced allegations of improper fund distribution and emphasized “
🔄 Updated: 9/2/2025, 9:40:53 PM
Judges' decision to uphold the Trump EPA’s cancellation of nearly $20 billion in Inflation Reduction Act grants to nonprofits sparked significant public backlash from climate groups and community advocates. Climate United, which had planned $392 million in projects including $63 million for solar developments, expressed frustration as the funding freeze stalled critical work and left contractors unpaid, while Power Forward cited $539 million in commitments hindered by the grant cancellations[1]. Meanwhile, some consumers and energy advocates warn the ruling could slow progress on affordable clean energy access, with one official lamenting, “It truly feels like we’re on the Titanic, throwing gold bars off the edge” amid lost opportunities to lower energy costs for vulnerable communities[3].
🔄 Updated: 9/2/2025, 9:50:55 PM
Judges upheld the Trump EPA’s cancellation of $20 billion in Inflation Reduction Act grants to nonprofits, a move that disrupts significant U.S. climate funding with potential global repercussions. The halted grants, which supported clean energy projects including $95 million in solar developments in Oregon, Idaho, and Arkansas, also impacted investments by groups like Climate United and Power Forward, limiting their ability to advance climate initiatives with international implications for renewable energy deployment and emission reductions[1][2]. The decision has drawn concern from environmental advocates globally who warn it could stall U.S. leadership in climate finance and slow collaborative efforts to meet global climate goals.
🔄 Updated: 9/2/2025, 10:00:54 PM
An appellate court upheld the Trump EPA’s cancellation of approximately $20 billion in Inflation Reduction Act climate grants to nonprofits, with judges asserting EPA Administrator Lee Zeldin acted within his authority to halt funds he deemed misaligned with agency priorities and raised fraud concerns, despite a prior district court ruling calling the cancellations “arbitrary and capricious”[1][2]. Expert analysis highlights the ruling’s reliance on controversial evidence, including edited undercover videos from Project Veritas, while industry voices warn of significant project disruptions—Climate United had committed $392 million to solar projects across several states, and Power Forward faced halted payments on $539 million in contracts due to the funding freeze[1]. This decision underscores ongoing tensions between regulatory oversight and climate investment goal
🔄 Updated: 9/2/2025, 10:10:55 PM
Judges upheld the Trump EPA’s cancellation of $20 billion in Inflation Reduction Act grants to nonprofits, affirming the agency's discretion to terminate funding due to concerns over mismanagement and conflicts of interest[1][3]. This ruling solidifies a shift in the competitive landscape by freezing previously committed funds, such as Climate United’s $392 million projects and Power Forward’s $539 million commitments, effectively disrupting ongoing renewable energy and community climate initiatives[1]. EPA Administrator Lee Zeldin emphasized the decision as necessary oversight to prevent self-dealing and ensure prudent management of taxpayer dollars[2].
🔄 Updated: 9/2/2025, 10:20:51 PM
Judges have upheld the Trump-era Environmental Protection Agency’s cancellation of billions of dollars in Inflation Reduction Act grants to nonprofits, ruling that the EPA has authority to terminate these climate-related funds[1][3]. This decision drew concern internationally, as it undermines significant U.S. financial commitments to green initiatives that many global partners viewed as crucial for advancing collective climate action. Although explicit international reactions are limited in reported sources, analysts warn this move could erode U.S. leadership credibility in global environmental cooperation frameworks.
🔄 Updated: 9/2/2025, 10:30:53 PM
A federal appeals court upheld the Trump-era EPA's cancellation of $20 billion in Inflation Reduction Act grants to eight nonprofits, sparking mixed public reactions. Some consumer advocates criticized the decision for halting crucial funding meant to support low-income communities with clean energy projects, labeling it a setback amid rising energy costs. EPA Administrator Lee Zeldin defended the move, calling the canceled funds “gold bars” improperly distributed and emphasizing efforts to lower energy costs and create jobs for Americans[1].
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