Appeals Court Blocks Trump from Rescinding Green Bank Funds

In a Reversal, a Federal Appeals Court has Blocked the Trump (R) Administration from Rescinding Billions in Climate Funds Issued under the Biden (D) Administration’s Signature Inflation Reduction Act (IRA). The D.C. Circuit Court of Appeals Reinstated part of a previous Preliminary Injunction that Temporarily Bars the Environmental Protection Agency (EPA) from Clawing back Billions in “Green Bank” Funding for Climate-Friendly Projects.

Tuesday’s Ruling came down from the Entire Bench of the Circuit Court. Previously, a Smaller Panel of Appellate Judges had Canceled the Injunction. It’s now Back in Place. When He took Office, EPA Administrator Lee Zeldin (R) said He would Recoup the $20 Billion Doled Out by the Biden Administration. The Funds would go to Green Banks that would have Awarded them to Projects that aim to Mitigate Climate Change or Reduce Pollution.

The Trump EPA, however, said it Terminated the Program and sought to get the Money Back. After the Latest Ruling, an EPA Spokesperson said the Agency was “reviewing the judgment and considering next steps.” The Spokesperson did Not address The Hill’s Request for a Status Update on the Funds since the Preliminary Injunction was Previously Axed nearly a year ago.

The Panel of Judges said it was Reinstating Part of the Injunction because the EPA’s Move “likely contravened the IRA’s mandatory appropriation” since the Decision was “based solely on a policy disagreement.” However, some of the Judges Disagreed, saying the Organizations that Sued to get their money back did Not show why the Injunction was needed after Republicans Repealed the Section of the IRA, as part of the One Big Beautiful Bill Act.

The Republican Bill Repealed “unobligated” Funds from the Program. Meanwhile, One of the Grantees, the Climate United Fund, Celebrated the Decision in a Statement.

“Today, the DC Circuit Court judges affirmed what we have always known: EPA took actions to unlawfully freeze and dismantle the National Clean Investment Fund grant program. Despite efforts to harm the awardees with false allegations and misinformation, there remains no legal basis for terminating our grant award and clawing back funds that were already disbursed in our bank accounts,” it said in the Statement.

“As hardworking Americans grapple with an affordability crisis, the impact of the EPA’s decisions are far-reaching. This program was designed to lower energy costs, create good jobs, and improve public health. We will continue to pursue every legal avenue available to us to unfreeze funds on behalf of the communities we serve,” it continued.










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