Dive Brief:
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The U.S. Court of Appeals for the District of Columbia Circuit agreed yesterday to vacate and rehear a September panel ruling allowing the Environmental Protection Agency to freeze $20 billion in Greenhouse Gas Reduction Fund grants.
- “Earlier in the year, EPA Administrator [Lee] Zeldin proudly terminated $20 billion in GGRF funding that was awarded to eight National Clean Investment Fund and Clean Communities Investment Accelerator entities as serious concerns were raised regarding self-dealing and conflicts of interest, unqualified recipients, and reduced government oversight,” an EPA spokesperson said in an emailed statement. “EPA looks forward to vindicating its rights in court.”
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“A court just said the EPA must stop blocking the investments from our Greenhouse Gas Reduction Fund,” Sen. Chris Van Hollen, D-Md., posted on social media. “We created this program to support innovation that spurs good-paying jobs & lowers costs for Americans.”
Dive Insight:
Climate United received $6.97 billion in grants from the Greenhouse Gas Reduction Fund created as part of the Inflation Reduction Act in April 2024.
The organization used the money to fund “projects across the United States that support domestic clean energy development, build healthy and affordable housing, accelerate American-made electric vehicle manufacturing, and save hard-working Americans money on their bills,” it said in a March 8 lawsuit filed after EPA froze the funding to it and other organizations on March 4.
The EPA stated that the grants were terminated “based on substantial concerns regarding the GGRF program integrity, the award process, wasteful spending, and misalignment with agency’s priorities, which collectively undermine the fundamental goals and statutory objectives of the award.”
U.S. District Judge Tanya Chutkan issued a preliminary injunction rejecting the EPA’s attempts to terminate the grant program on April 15.
EPA appealed, and the U.S. Court of Appeals for the D.C. Circuit ruled 2-1 in September that the district court lacked jurisdiction in the case. Climate United and a group of grantees filed an emergency appeal asking the full court to review that decision on Sept. 11.
Oral arguments before the full court will take place on Feb. 24, 2026. The funds will remain frozen while litigation continues.
In separate lawsuits, Harris County, Texas, a coalition of states and community and labor groups are suing EPA for terminating the $7 billion Solar for All program to help low-income communities adopt clean energy, which was also created under the Clean Air Act’s Greenhouse Gas Reduction Fund.
