A federal appeals court ruled on August 4, 2026, that the Trump administration improperly terminated funding for clean energy projects, impacting a program established under the Biden administration. The court's decision allows for a coalition of nonprofits, including Climate United Fund, to challenge the termination of their grants, although access to funds will be delayed as the Environmental Protection Agency (EPA) considers appealing to the Supreme Court.
The Greenhouse Gas Reduction Fund, a $20 billion program authorized by Congress, was designed to support nonprofits in financing energy projects and improving energy efficiency. EPA Administrator Lee Zeldin had previously accused the nonprofits of mismanagement, leading to the freezing of funds and termination of grants. The nonprofits contested these allegations, claiming that the Trump administration violated legal and constitutional obligations by not disbursing the authorized funds.
In a previous ruling, a three-judge panel had supported the Trump administration's authority to cancel grants, but the full U.S. Court of Appeals for the District of Columbia agreed to revisit this decision. The court's majority opinion indicated that the Trump administration likely violated the 2022 law when it terminated the grants, although some judges expressed concerns about the implications of Trump's tax and spending bill on the nonprofits' access to funds. The EPA has not yet commented on the ruling.