Appeals court mulls whether GOP rescission has mooted climate grant dispute

By Alex Guillén | 03/17/2026 06:43 AM EDT

The judges appeared confused about whether the Trump administration’s termination made the grant money subject to rescission under the One Big Beautiful Bill Act.

A person on a scooter rides past the the E. Barrett Prettyman Federal Courthouse.

Questions of semantics and timing dominated an appellate court argument over $2.8 billion in climate grants terminated by the Trump administration. Kevin Wolf/AP

A panel of federal judges on Monday debated whether almost $3 billion in Biden-era climate grants had actually been rescinded by Republicans as part of the spending bill they passed last year.

The judges gave no indications during oral arguments how they may rule, and all sides acknowledged other cases pending before the full court — including a dispute over the $20 billion Greenhouse Gas Reduction Fund — will likely play a significant role in the outcome for these separate climate grants.

The case highlights the tug-of-war on climate change policy and spending that creates confusion when power in Washington changes hands.

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“I think there’s no doubt that [Congress] can rescind” funds, said Chief Judge Sri Srinivasan of the D.C. Circuit Court of Appeals. “But the question becomes, when did they become unobligated? Do they become unobligated?”

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