Trump EPA expects grant funding to shrink

By Kevin Bogardus | 03/12/2026 01:24 PM EDT

In its response to an inspector general report, the agency said “grant funding for EPA is anticipated to contract dramatically.”

The Environmental Protection Agency headquarters is shown.

EPA headquarters in Washington on March 16, 2017. Justin Sullivan/Getty Images

EPA expects considerable belt-tightening on grants funding as the Trump administration downsizes the agency.

The agency’s Office of Inspector General released a report Thursday that dinged EPA for lackluster planning for its employees who manage grants, which make up about half of EPA’s annual budget.

EPA responded that the cash flow of grants may soon slow down under President Donald Trump’s plans for the agency,

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Citing the White House’s fiscal 2026 budget request, “grant funding for EPA is anticipated to contract dramatically,” said the agency’s response, which was signed by Michael Molina, now principal deputy chief administrative officer and a top Trump political appointee.

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