EPA climate grant deal avoids Supreme Court emergency docket

By Alex Guillén, Jean Chemnick | 08/07/2026 01:48 PM EDT

The agency said it reached an agreement with groups affected by billions of dollars in frozen funds. Money will not flow while the case goes through the appeals process.

The U.S. Supreme Court building is seen.

The Greenhouse Gas Reduction Fund grant money will remain frozen while the Trump administration appeals to the Supreme Court. Francis Chung/POLITICO

Nonprofit groups fighting to receive roughly $17 billion in Biden-era climate grants have agreed to keep the money on ice a while longer — a move that could delay the awards until summer 2027 if the Supreme Court agrees to settle the dispute.

In a Tuesday order, the U.S. Court of Appeals for the District of Columbia Circuit ruled that the recipients fighting Administrator Lee Zeldin’s termination of their grants must be allowed to tap the funds again starting next week.

But in a filing Thursday evening, EPA said it reached a deal with challengers to maintain the funding freeze while the case is appealed to the Supreme Court. The D.C. Circuit backed the arrangement Friday afternoon.

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Now, the case will go through the traditional appeals process to the nation’s highest court. That will avoid an appeal on the Supreme Court’s emergency docket, also known by some critics as the “shadow” docket, that might not have gone favorably for the grantees.