US court deals blow to Trump’s bid to scrap climate grant programme
Summary
A US federal appeals court ruled that the Environmental Protection Agency (EPA) likely broke the law by trying to cancel a $20 billion clean energy grant program created under President Biden’s Inflation Reduction Act. The court stopped the EPA from freezing the grants but paused the release of funds while the EPA considers asking the Supreme Court to intervene.Key Facts
- The court ruled against the EPA’s attempt to cancel the Greenhouse Gas Reduction Fund, a $20 billion grant program for clean energy projects.
- The fund was created by Congress in the 2022 Inflation Reduction Act to support nonprofit groups investing in energy projects and clean energy infrastructure.
- EPA Administrator Lee Zeldin tried to stop the program, claiming it was wasteful and accused recipients of fraud.
- The EPA froze billions of dollars that were held at Citibank for distribution to grantees.
- The organizations receiving funds sued, saying the administration was wrongfully withholding money approved by Congress.
- The full appeals court reversed an earlier panel decision that had sided with the EPA.
- Judges said the EPA’s action was based on policy disagreements and likely violated the law.
- The court’s decision restores an earlier judge’s order that blocked the EPA from canceling the grants without proper justification.
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