Trump EPA wrongly canceled $20B in climate funds, appeals court rules

The Trump EPA had argued that it had the authority to claw back funding because the One Big Beautiful Bill Act (OBBBA) repealed the part of the IRA that created the Greenhouse Gas Reduction Fund.

But the assenting judges said that because funds were already obligated and disbursed into the nonprofits’ accounts, the OBBBA didn’t have grounds to claw back the money. In other words, the government can’t make a new law to take back money it had already sent out.

While nonprofits celebrated the decision, it might be too little, too late for some of them.

Climate United’s CEO left in March and hasn’t been replaced, while Power Forward Communities only has two employees left, The New York Times reported. Others have had to lay off workers.

The EPA has seven days to file an appeal to the Supreme Court.