POLITICO Energy
Trump’s big climate funding freeze just hit a legal roadblock
Apr 3, 2025
This week, a court decision stopped the Trump administration from revoking billions in climate funding tied to the Inflation Reduction Act. The legal battle focused on the legality of the EPA's freeze on $14 billion in grants, raising tough questions for the administration. Frustration emerged in court over insufficient evidence to support the EPA's claims. Additionally, Senate Republicans introduced a new budget plan to help push Trump's domestic agenda, highlighting the ongoing political maneuvering in the fight over climate initiatives.
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Quick takeaways
- A federal judge's challenge to Trump's funding freeze highlights significant legal complexities impacting congressionally approved climate initiatives under the Inflation Reduction Act.
- The outcome of the ongoing court case could either impede or expedite critical climate projects, depending on the judge's ruling on grant accessibility.
Deep dives
Legal Roadblock for Climate Grants
A federal judge recently challenged the Trump administration's attempt to retract $20 billion in climate grants from the Greenhouse Gas Reduction Fund, part of the Inflation Reduction Act. This hearing centered on whether nonprofit groups, which were awarded approximately $14 billion in these grants, could regain access to funds frozen by the EPA. The cancellation of these grants was contested as the groups argued it lacked sufficient justification, with the judge questioning the administration's claims of wrongdoing due to a lack of presented evidence. As a result, this legal setback poses significant implications for the administration's broader strategy to dismantle established climate funding.
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