Appeals Court Upholds Trump EPA Climate Grant Terminations

A federal appeals court ruled in favor of the Trump administration's Environmental Protection Agency (EPA) by overturning a lower court injunction that blocked the termination of $20 billion in climate grants initiated under President Biden's administration. The court determined that disputes over these grants are contractual and should be addressed exclusively by the Court of Federal Claims, rejecting the grantees' case in district court. Judges Neomi Rao and Gregory Katsas, both Trump appointees, emphasized the government's responsibility to oversee and manage the funds properly, while dissenting Judge Nina Pillard criticized the majority for enabling what she called sabotage of Biden's climate efforts. These grants, part of the Greenhouse Gas Reduction Fund established by the Inflation Reduction Act, were allocated rapidly by the Biden EPA shortly before the Trump administration took office, which then sought to retract the funding citing concerns over oversight and qualifications of recipients. Climate groups argue the EPA unlawfully froze and terminated funds already obligated for climate projects, but the appeals court ruling marks a significant legal victory for the Trump administration's deregulatory agenda focused on fossil fuel development. This decision is likely to stand as the Supreme Court is not expected to intervene, solidifying the Trump EPA's authority to rescind the climate grants.