Federal Appeals Court Upholds EPA Termination of Green Bank Grants

A federal appeals court ruled 2-1 in favor of the Environmental Protection Agency (EPA) and Administrator Lee Zeldin, upholding the agency's decision to terminate billions of dollars in grants for nonprofits managing the Greenhouse Gas Reduction Fund and the Solar For All program. The court held that disputes over the termination of these grants, totaling nearly $17 to $20 billion, are contractual in nature and therefore must be heard in federal claims court rather than district court. The ruling supports the EPA's concerns about mismanagement, self-dealing, conflicts of interest, and reduced agency oversight under the prior administration’s handling of these programs. Two Trump administration-appointed judges joined the majority opinion backing the EPA, while the Obama appointee dissented. The EPA criticized the previous grant administration for modifying agreements to hinder termination and ignoring evidence of mismanagement, including a controversial “gold bars” video. This decision effectively allows the EPA to claw back funds from projects it views as wasteful or poorly managed, reinforcing the agency's role as steward of taxpayer dollars in climate-related funding.