Trump EPA Spending Freeze Continues regardless of Court docket Orders

Two judges have ordered the Trump administration to raise a freeze on spending, together with on the Environmental Safety Company. However nonprofits and states nonetheless can’t get cash for contracts which are backed by the Inflation Discount Act

By Jean Chemnick & E&E News

CLIMATEWIRE | The Trump administration continues to be freezing many local weather and infrastructure grants regardless of two federal court docket orders barring it from doing so.

Nonprofits and state businesses nonetheless lacked entry Monday to EPA grant awards funded by the Inflation Discount Act. Two district court docket judges have issued orders to reverse such spending freezes — with U.S. District Choose Loren AliKhan reinforcing her order Monday.

EPA administers a number of main grant packages underneath the local weather legislation, together with the almost $5 billion Local weather Air pollution Discount Grant program and the $7 billion Photo voltaic for All program, which helps neighborhood and rooftop photo voltaic tasks in low-income neighborhoods. The overwhelming majority of these grants had been ultimate when former President Joe Biden left workplace final month, and the Trump EPA has few clear choices to tug again funds or repurpose the awards.

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EPA will not be the one company that has halted payouts from the IRA and the 2021 bipartisan infrastructure legislation, stated Jillian Blanchard, vice chairman for local weather change and environmental justice with Legal professionals for Good Authorities. She stated grant recipients on the Agriculture and Vitality departments are additionally reporting that they can not entry funds.

“Individuals can’t get into their accounts. They cannot entry funding. They’re ready on invoices to be paid. Nobody will name them again,” she stated.

EPA program recipients advised POLITICO’s E&E Information on Monday that the shortcoming to entry funds was already having an influence after one week. The recipients, granted anonymity to keep away from retribution, stated they’ve needed to lay out cash for bills, like payroll or lease, with out realizing if and when it will be reimbursed. The freeze has additionally prompted some recipients to pause hiring — and fear about how lengthy they might pay present workers.

The Justice Division in a submitting Monday acknowledged AliKhan’s order and pledged to tell businesses of it. But it surely argued that the order “incorporates a number of ambiguous phrases and provisions that might be learn to represent vital intrusions on the chief department’s lawful authorities and the separation of powers.”

EPA’s appearing Common Counsel Sean Donahue despatched an company “mass mailer” to all workers earlier than 9 a.m. Monday morning that linked to the short-term restraining order. He promised “further EPA-specific steering on company monetary help,” which sources stated was not despatched as of Monday night.

EPA declined to answer an inquiry from E&E Information about why the funds remained frozen, referring inquiries to DOJ. EPA didn’t acknowledge questions on whether or not the delay was as a result of a technical issue or whether or not the company believed it was complying with the court docket order.

DOJ declined to remark.

Zealan Hoover, former director of implementation at Biden’s EPA, stated the Trump administration seemed to be making an attempt to dodge the order.

“I’m very involved that this unlawful motion will drive state and native governments to pause building, lay off workers and gradual their work to supply cleaner air and water,” he stated.

Blanchard echoed that concern.

“It appears to be like like this govt is contemplating simply utterly flouting a court docket’s direct order,” she stated.

Reprinted from E&E News with permission from POLITICO, LLC. Copyright 2025. E&E Information offers important information for vitality and atmosphere professionals.