Electric utility tower viewed from below.

Trump administration’s spending freeze sparks legal battles

The Trump administration has paused billions in climate and clean energy funds, defying court orders and raising concerns about the government's reliability in honoring financial commitments.

Brad Plumer and Nicholas Nehamas report for The New York Times.


In short:

  • Federal agencies have halted funding for climate and infrastructure projects approved under Biden, despite legal obligations and two court rulings ordering payments.
  • Companies, schools and local governments that expected federal reimbursements for clean energy investments now face financial uncertainty, with some businesses furloughing employees.
  • Lawsuits challenge the administration’s actions, and experts warn that undermining federal contracts could damage the U.S. government's credibility in financial agreements.

Key quote:

“They’ve taken a process that is longstanding, stable and reliable and turned the government into an unreliable business partner.”

— Jessica Tillipman, associate dean for government procurement law at George Washington University Law School

Why this matters:

The federal government’s ability to uphold financial agreements underpins trust in public-private partnerships. When legally obligated funds are withheld, businesses, schools and communities that rely on these investments face disruptions. Clean energy projects — many tied to long-term climate goals — could stall, leaving states and companies hesitant to commit to future federal programs. Legal battles over these freezes may set precedents for how future administrations handle funding, especially in politically contentious areas like climate policy.

Related: Trump's freeze on climate spending halts projects and jobs

NYC traffic congestion pricing
Credit: b k/Flickr

New York City's congestion toll halted by Trump administration

The Trump administration has rescinded federal approval for New York City's congestion pricing program, sparking legal challenges from state officials.

Ben Brasch and Allyson Chiu report for The Washington Post.

Keep reading...Show less
Senator Whitehouse & climate change

Senator Whitehouse puts climate change on budget committee’s agenda

For more than a decade, Senator Sheldon Whitehouse gave daily warnings about the mounting threat of climate change. Now he has a powerful new perch.
Oil drilling equipment in a field at sunset.

Trump administration moves to speed up fossil fuel projects with emergency permits

The U.S. Army Corps of Engineers has introduced a new category of “emergency” permits to fast-track fossil fuel projects, potentially limiting environmental reviews and public input.

Lisa Friedman reports for The New York Times.

Keep reading...Show less
U.S. fish and wildlife sign in the woods indicating that a permit is required.

Interior Department fires thousands as federal layoffs expand

The Trump administration has fired more than 2,000 probationary employees at the Interior Department, part of a sweeping effort to reduce the federal workforce across multiple agencies.

Coral Davenport and Chris Cameron report for The New York Times.

Keep reading...Show less
Aerial view of oil terminal tanks and docks surrounded by water.

Texas offshore oil terminal gets federal approval

The Trump administration approved a license for the Texas GulfLink project, a deepwater oil export terminal off the coast of Freeport, Texas, allowing it to move forward with plans to ship up to two million barrels of crude oil per day.

Shelby Webb reports for E&E News.

Keep reading...Show less
An African child being cradled in its mother's arms.

USAID shuts down climate programs aimed at preventing unrest

The Trump administration’s efforts to dismantle the U.S. Agency for International Development (USAID) have halted programs designed to mitigate conflicts fueled by climate change, leaving vulnerable regions without critical support.

Somini Sengupta reports for The New York Times.

Keep reading...Show less
Demolished house and cars after a tornado.

FEMA firings target climate and equity staff

The Trump administration has dismissed hundreds of Federal Emergency Management Agency employees and is now compiling a list of staff involved in climate change, equity, and environmental justice programs, raising concerns about the agency’s disaster response capacity.

Thomas Frank reports for E&E News.

Keep reading...Show less
Farmer in white shirt and jeans planting seeds in a field.

North Carolina farmers still struggle months after Hurricane Helene

Western North Carolina farmers face mounting losses and uncertainty months after Hurricane Helene devastated crops, equipment, and land, with state and federal aid still slow to arrive.

Brady Dennis reports for The Washington Post.

Keep reading...Show less
From our Newsroom
wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

People  sitting in an outdoors table working on a big sign.

Op-ed: Why funding for the environmental justice movement must be anti-racist

We must prioritize minority-serving institutions, BIPOC-led organizations and researchers to lead environmental justice efforts.

joe biden

Biden finalizes long-awaited hydrogen tax credits ahead of Trump presidency

Responses to the new rules have been mixed, and environmental advocates worry that Trump could undermine them.

Op-ed: Toxic prisons teach us that environmental justice needs abolition

Op-ed: Toxic prisons teach us that environmental justice needs abolition

Prisons, jails and detention centers are placed in locations where environmental hazards such as toxic landfills, floods and extreme heat are the norm.

Agents of Change in Environmental Justice logo

LISTEN: Reflections on the first five years of the Agents of Change program

The leadership team talks about what they’ve learned — and what lies ahead.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.