EPA spending freeze continues despite court orders

By Jean Chemnick | 02/04/2025 06:26 AM EST

Two judges have ordered the administration to lift the freeze. But nonprofits and states still can’t get money for contracts backed by the Inflation Reduction Act.

Grid Alternatives employees hoist a solar panel as they install no-cost solar panels on the rooftop of a low-income household in California.

Grid Alternatives employees hoist a solar panel as they install no-cost solar panels on the rooftop of a low-income household on Oct. 19, 2023, in Pomona, California. Mario Tama/Getty Images

The Trump administration is still freezing many climate and infrastructure grants despite two federal court orders barring it from doing so.

Nonprofits and state agencies still lacked access Monday to EPA grant awards funded through the Inflation Reduction Act. Two district court judges have issued orders to reverse such spending freezes — with U.S. District Judge Loren AliKhan reinforcing her order Monday.

EPA administers several major grant programs under the climate law, including the nearly $5 billion Climate Pollution Reduction Grant program and the $7 billion Solar for All program, which supports community and rooftop solar projects in low-income neighborhoods. The overwhelming majority of those grants were final when former President Joe Biden left office last month, and the Trump EPA has few clear options to pull back funds or repurpose the awards.

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EPA is not the only agency that has halted payouts from the IRA and the 2021 bipartisan infrastructure law, said Jillian Blanchard, vice president for climate change and environmental justice with Lawyers for Good Government. She said grant recipients at the Agriculture and Energy departments are also reporting that they can’t access funds.

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