Bennington
Federal Courts Block EPA From Canceling $22B in Climate Funding
Two courts this week dealt blows to the Trump administration’s attempts to withdraw clean energy and climate grants. A federal appeals court on Tuesday ruled that the Environmental Protection Agency could not terminate $20 billion in clean energy grants awarded…
Key points
- Federal courts blocked the EPA from canceling $22 billion in clean energy and climate justice grants authorized under the Inflation Reduction Act.
- A federal appeals court restored an injunction protecting $20 billion in non-profit clean energy grants, giving the EPA one week to appeal to the Supreme Court.
- A federal judge ordered the EPA to restore $1.6 billion in environmental justice grants by Sept. 30, 2026.
NewsWK — Recent federal court rulings blocking the cancellation of $22 billion in climate and clean energy grants could help protect federal environmental funding streams across the nation, including potential regional projects in Southern Vermont and neighboring states.
According to a report first published by Stateline, two separate federal courts ruled this week that the Environmental Protection Agency acted unlawfully when it attempted to rescind grants authorized under the Biden-era Inflation Reduction Act.
D.C. Circuit Restores $20 Billion Clean Energy Funding
On Tuesday, August 5, 2026, a divided U.S. Court of Appeals for the District of Columbia Circuit restored an injunction against EPA Administrator Lee Zeldin. The decision prevents the agency from taking back $20 billion in clean energy grants previously awarded to non-profit groups.
While the decision favors grant recipients, the court gave the EPA one week to appeal the ruling to the U.S. Supreme Court before non-profits can access the funds.
District Court Orders Release of $1.6 Billion
In a separate ruling on Monday, August 4, 2026, U.S. District Judge Richard Mark Gergel rejected a request by the Trump administration to halt an order restoring $1.6 billion in climate justice grants.
The lawsuit was led by The Sustainability Institute alongside ten other non-profit organizations and six cities. Plaintiffs argued that the administration unlawfully canceled funds intended to assist communities vulnerable to pollution and climate change.
Key details from the court decisions include:
- Total funding involved: $22 billion across two major federal programs.
- Clean energy grants: $20 billion on hold pending a potential Supreme Court appeal.
- Climate justice grants: $1.6 billion ordered reinstated by Sept. 30, 2026.
- Legal basis: Judge Gergel ruled that withholding the funds causes direct harm to plaintiff organizations and municipalities.
Agency Appeals Mandate
EPA Associate Deputy Administrator Travis Voyles filed a motion asking to halt the order while appealing to the 4th U.S. Circuit Court of Appeals. Voyles stated that the EPA lacks the staff and funding to restore the grants after closing environmental justice offices agency-wide.
What This Means for Our Area
For residents in Bennington County and surrounding communities in Vermont, New York, and Massachusetts, the rulings help preserve federal resources designed for clean energy adoption, weatherization initiatives, and localized environmental resilience.
If the court decisions stand against ongoing federal appeals, local non-profits and regional municipal partners may retain access to competitive federal environmental grants.
This article was produced with the assistance of AI and reviewed by our editorial team.
Based on reporting by Nada Hassanein originally published by Stateline. Read the original story.
