Judge blocks EPA from reclaiming $20 billion in climate grants — for now

A federal judge has temporarily stopped the U.S. Environmental Protection Agency from taking back $20 billion in climate grants awarded during the Biden administration, delaying the Trump administration’s effort to roll back past clean-energy investments.

Zack Colman reports for POLITICO.

In short:

• U.S. District Judge Tanya Chutkan ruled that the EPA failed to provide legal justification for canceling the grants, which were deposited at Citibank for nonprofit climate groups.
• The decision does not restore access to the funds for grantees but prevents the EPA from reclaiming the money while litigation continues.
• The grants, part of the Greenhouse Gas Reduction Fund, support private-sector clean energy projects in underserved communities and are a key target in Trump’s push to dismantle Biden’s climate policies.

Key quote:

“Based on the record before the court, and under the relevant statutes and various agreements, it does not appear that EPA Defendants took the legally required steps necessary to terminate these grants, such that its actions were arbitrary and capricious.”

— U.S. District Judge Tanya Chutkan

Why this matters:

The ruling represents yet another flashpoint in the ongoing battle over U.S. climate policy. At the heart of the dispute is $20 billion in clean energy funding — money that was intended to accelerate the transition to lower-carbon technologies, particularly in economically disadvantaged communities. The Trump administration’s broader rollback of Biden-era climate initiatives has been met with resistance from environmental groups and Democratic lawmakers, who argue that these funds are crucial for reducing emissions and stimulating green job growth.

Meanwhile, conservative policymakers and industry groups have questioned the necessity of such large-scale government spending, framing it as an inefficient use of taxpayer dollars. The case underscores the stark political divide over climate investments, with implications for both the energy sector and broader economic policy. As courts weigh in, the outcome could shape the trajectory of U.S. climate action in the years ahead.

Learn more: EPA defends freezing $20 billion in climate grants without new evidence