Appeals court rules EPA can withhold $16B in climate funds
Share and Follow


() A federal appeals court Tuesday delivered a victory to the Trump administration in its effort to freeze billions of dollars and cancel contracts for nonprofits to run a “green bank” program to finance climate-friendly projects.

Environmental Protection Agency Administrator Lee Zeldin, who has criticized the Biden-era program as wasteful and mismanaged, had moved to claw back funding already distributed. A lower court previously ruled the EPA lacked evidence to support its accusation and could not end contracts without proof.

But in a 2-1 decision, the appeals court sided with the EPA, ruling that the nonprofits’ arguments belong in federal claims court, which handles contract disputes, rather than in district court. The decision was written by U.S. Appeals Court Judge Neomi Rao and was supported by Judge Gregory Katsas. Rao and Katsas were both appointed by President Donald Trump.

Tuesday’s ruling blocks climate groups from regaining immediate access to roughly $16 billion in funds they argue are urgently needed. Instead, organizations like Climate United Fund may now only pursue monetary damages in claims court.

“In sum, district courts have no jurisdiction to hear claims that the federal government terminated a grant agreement arbitrarily or with impunity. Claims of arbitrary grant termination are essentially contractual,” Rao wrote in the opinion.

The lawsuit named the EPA, Zeldin and Citibank, which has been holding the grant money on behalf of the agency. Nonprofits argue the funding freeze has paralyzed their work and jeopardized their basic operations.

Judge Cornelia Pillard, who former President Barack Obama appointed, said in her dissent that the groups provided evidence that the EPA disagreed with the program’s goals and tried to end it while throwing around allegations against the groups that it couldn’t substantiate.

The EPA has damaged the green bank program “without presenting to any court any credible evidence or coherent reason that could justify its interference with plaintiffs’ money and its sabotage of Congress’s law,” Pillard wrote.

The Associated Press contributed to this report.

Share and Follow
You May Also Like
Chicago and Illinois sue to stop Trump’s National Guard deployment plan after Portland ruling

Chicago and Illinois File Lawsuit to Block Trump’s Plan to Deploy National Guard After Portland Decision

The Trump administration has portrayed the cities as war-ravaged and lawless amid…
Trump, Canadian Prime Minister Mark Carney meet over trade

Trump and Canadian Prime Minister Mark Carney Discuss Trade Relations

() Canadian Prime Minister Mark Carney is meeting with President Donald Trump…
Surprising stomach symptom linked to autism, according to new study

New Research Finds Unexpected Gut Symptom Associated with Autism

Children diagnosed with autism could be at a greater risk of debilitating…
Missing New York politician's name to still appear on ballot

Name of Disappeared New York Politician to Remain on Ballot

NEW YORK () — A Long Island politician who went missing earlier this…
Mystery of a child prodigy who wrote acclaimed novel then vanished

The Enigmatic Tale of a Child Prodigy Who Penned a Celebrated Novel and Then Disappeared

By the age of 12, Barbara Newhall Follett had already become a…
Woman arrested for allegedly punching child in Knoxville

Woman Taken into Custody for Suspected Assault on a Child in Knoxville

Witnesses told police the woman dragged the child by his arm into…
Insider reveals the fate of star NFL analyst Mark Sanchez

Insider Unveils Future Prospects for Star NFL Analyst Mark Sanchez

Mark Sanchez’s felony arrest over a violent altercation with a 69-year-old delivery…
Sean 'Diddy' Combs' lawyers want him sent to a New Jersey federal prison that offers drug treatment

Sean ‘Diddy’ Combs’ Lawyers Seek to Transfer Him to New Jersey Federal Prison with Drug Treatment Program

NEW YORK (AP) — Sean “Diddy” Combs’ lawyers want the hip-hop mogul…