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- By Brian Edwards
- Energy | Environment
A federal judge temporarily blocked the Environmental Protection Agency from terminating billions in climate funding awarded during the Biden administration, a decision that protects $1.5 billion committed for tribal energy projects alongside other clean energy initiatives. The ruling delivers a setback to the Trump administration's efforts to dismantle key climate programs.
Judge Tanya S. Chutkan of the U.S. District Court for the District of Columbia granted a temporary restraining order on Tuesday preventing the EPA and Citibank from implementing the agency's termination of grants to three nonprofit organizations: Climate United Fund, Coalition for Green Capital, and Power Forward Communities.
The ruling freezes the EPA's recent decision to cancel approximately $20 billion in grants from the Greenhouse Gas Reduction Fund, which was established through the Inflation Reduction Act to accelerate clean energy investments. The EPA, under Administrator Lee Zeldin, had moved to terminate these grants on March 11, citing concerns about program integrity, oversight mechanisms, and alignment with the current administration's priorities.
Chutkan's order specifically prohibits the EPA from transferring, re-obligating or re-allocating the grant funds held in the plaintiffs' Citibank accounts. It also prevents Citibank from moving the funds to any party other than the account holders without a court order.
In her 23-page memorandum opinion accompanying the order, Chutkan wrote that EPA officials failed to provide concrete evidence of fraud or wrongdoing when pressed during hearings and did not follow required procedural steps before termination.
“Vague and unsubstantiated assertions of fraud are insufficient,” she wrote, finding the nonprofits showed a “substantial likelihood of success” on their claims that the EPA violated administrative procedures and due process requirements. The judge emphasized that the organizations would suffer irreparable harm without access to their funds, as they would be unable to meet payroll obligations, fulfill existing project commitments, and would likely cease operations entirely.
The dispute represents one of the first major legal battles over the Biden administration's climate initiatives since President Donald Trump's return to office in January. The EPA claims the grants lack adequate oversight and potentially violate constitutional principles, while the grantees argue the termination is unlawful and politically motivated.
The temporary restraining order will remain in effect while the court considers the full merits of the case. Citibank must file a compliance report by March 24, and all parties must submit a joint status report by March 19 outlining next steps in the litigation.
“Today’s decision is a strong step in the right direction,” Climate United CEO Beth Bafford said in a statement. “In the coming weeks, we will continue working towards a long-term solution that will allow us to invest in projects that deliver energy savings, create jobs, and boost American manufacturing in communities across the country.”
The grants in question are intended to fund low-interest loans for climate initiatives like building solar arrays and improving home energy efficiency. For Native American communities, the EPA’s attempts to terminate the grants represent a potential setback to tribal energy sovereignty efforts. The eight grantees under the Greenhouse Gas Reduction Fund programs had pledged to direct $1.5 billion for clean energy loan capital and technical assistance in Native communities.
