Appeals court backs Trump on withholding $16 billion climate grants
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A federal appeals court overturned a previous decision that blocked President Donald Trump’s administration from withholding $16 billion in climate grants, ruling that the lower court had overstepped its authority.
The D.C. Circuit Court found that the District Court for Washington, D.C. had wrongly granted an injunction preventing the Trump administration from withholding funds intended for climate grants. The court’s opinion, written by Judge Neomi Rao, stated that the grantees were unlikely to succeed on the merits of their claims, which were deemed contractual in nature.
“The district court abused its discretion in issuing the injunction. The government, on behalf of the public, must ensure the proper oversight and management of this multi-billion-dollar fund,” the opinion stated.
The case revolved around $16 billion in EPA grants awarded to five nonprofits under the previous administration to support efforts to reduce greenhouse gas emissions. The Trump administration sought to review and potentially cut off the flow of funds, leading to a lawsuit from the nonprofits and the subsequent injunction from the district court.
Judge Rao highlighted evidence that the EPA had modified grant agreements shortly before Trump took office, making it harder for the government to terminate the grants. The opinion also referenced statements from an EPA employee suggesting a rushed distribution of funds after Biden’s election victory.
The ruling was welcomed by an EPA spokesperson, who emphasized the agency’s duty to be a responsible steward of taxpayer dollars. The nonprofits involved in the case had mixed reactions to the decision, with one CEO expressing disappointment while vowing to continue fighting for clean energy initiatives.
The decision is part of a broader effort by the Trump administration to reduce government spending, including significant cuts at the EPA and other agencies. EPA Administrator Lee Zeldin has been at the forefront of these efforts, aiming to streamline operations and focus on the agency’s core mission.
For more details, you can read the full opinion from the D.C. Circuit here.
