Appeals court rules Trump EPA unlawfully froze $20B in climate funds

The U.S. Circuit Court of Appeals for the District of Columbia Circuit found that the EPA’s move to seize the money was driven solely by policy disagreement rather than legal necessity. In a six-to-four decision, the judges determined that because the funds were already obligated and deposited into the groups' accounts, the One Big Beautiful Bill Act could not be applied retroactively to reclaim them. The court upheld an injunction against the agency, effectively restoring the nonprofits' access to the capital.

While the ruling provides a legal victory, the operational damage to the organizations remains severe. Many groups, including Power Forward Communities and Climate United, were forced to implement drastic staff cuts and leadership changes during the months their assets were locked. The EPA now faces a seven-day window to challenge the ruling before the Supreme Court, leaving the future of the Greenhouse Gas Reduction Fund in continued uncertainty.