Appeals court upholds injunction blocking EPA from axing $20B in climate grants

By Alex Guillén, Jean Chemnick | 08/04/2026 01:35 PM EDT

The ruling is a big win for recipients — but potentially only a short-lived one, since it could be swiftly appealed to the Supreme Court.

EPA Administrator Lee Zeldin listens during an event about loosening a federal refrigerant rule, in the Oval Office at the White House, May 21, 2026.

EPA Administrator Lee Zeldin has said he "will not rest" until he gets back the billions of grant dollars under the Greenhouse Gas Reduction Fund. Jacquelyn Martin/AP

A federal appeals court Tuesday barred EPA from clawing back billions of dollars in unspent green energy grants that were awarded to nonprofits under former President Joe Biden’s signature climate law.

Under the court’s order, the recipients could start drawing down funds as soon as next week, when the April 2025 stay that had effectively kept the cash frozen in bank accounts now must be lifted.

But the Trump administration may ask the Supreme Court to step in and maintain the freeze before then. EPA Administrator Lee Zeldin last year vowed that he “will not rest” until he has recovered as much of the $20 billion in climate grants as possible.

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In a statement, EPA said it is reviewing the judgment and considering next steps.