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
Trump jokes Xi Jinping is 'tough negotiator' at high-stakes meeting

Trump Praises Xi Jinping’s Negotiation Skills at Crucial Diplomatic Summit

Donald Trump and Chinese President Xi Jinping met in person for the…
Dad-to-be, 29, killed by single punch in bar brawl

Tragic Night Out: Expectant Father Loses Life in Bar Altercation

A tragic incident unfolded in Arizona as a man eagerly anticipating fatherhood…
Trump and China's Xi are meeting in South Korea to try to roll back months of trade tensions

Trump and Xi Convene in South Korea to Address Trade Disputes

GYEONGJU, South Korea — On Thursday, President Donald Trump is engaging directly…
President Donald Trump cuts tariffs on China after meeting Xi in South Korea

Trump Reduces China Tariffs Following Strategic Meeting with Xi in South Korea

President Donald Trump hailed his recent meeting with Chinese President Xi Jinping…
Trump's redistricting push fuels nationwide gerrymandering fight

Trump’s Redistricting Initiative Intensifies National Gerrymandering Debate

President Donald Trump’s encouragement for Republican-dominated states to revise their congressional boundaries…
Stray Cats cancel US tour as Brian Setzer battles 'serious illness'

Stray Cats Call Off US Tour Due to Brian Setzer’s Health Challenges

The Stray Cats have announced the unfortunate cancellation of their U.S. tour…
Holon signs deal to build its driverless shuttles in $100 million Jacksonville facility

Holon to Launch $100 Million Autonomous Shuttle Production in Jacksonville

Holon is set to expand its global footprint with plans for new…
The methods Russian officers are using to torture and kill OWN men

Russian Officers’ Alleged Tactics for Torturing and Executing Their Own Soldiers Uncovered

In a startling revelation, an investigation has unveiled that Russian commanders are…