A federal judge has indefinitely blocked the Environmental Protection Agency (EPA) from freezing or reclaiming billions in climate grants issued during the Biden administration. U.S. District Judge Tanya Chutkan ruled Wednesday that the EPA cannot suspend, terminate, or limit access to the funds while litigation over the matter proceeds.
Chutkan also ordered Citibank, which received the funds but withheld disbursement under the Trump administration’s direction, to unfreeze the money. However, she postponed the release of funds until Thursday afternoon. The order restores $14 billion of the $20 billion allocated by the Inflation Reduction Act to finance climate initiatives through eight institutions.
The Trump administration claimed the grants were frozen due to suspected waste and fraud, but provided no evidence. Chutkan previously blocked the EPA from returning the funds to the Treasury and criticized the agency’s lack of substantiation.
The decision marks a significant setback for the administration’s broader efforts to dismantle Biden-era climate programs. An appeal is underway.
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