Court halts green fund clawback

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Court halts green fund clawback

The Hill · 15 hours ago

I now have enough verified detail to write an accurate summary.

SUMMARY:
A federal appeals court has dealt a blow to the Trump administration's attempt to strip billions of dollars in clean energy funding from grantees under the "green bank" programme created by the 2022 Inflation Reduction Act. On 4 August 2026, the full U.S. Court of Appeals for the District of Columbia Circuit, sitting en banc, upheld a preliminary injunction barring the Environmental Protection Agency (EPA) from terminating the grants, finding that the agency had likely acted unlawfully in trying to claw the money back.

The dispute centres on roughly $20 billion allocated through the EPA's Greenhouse Gas Reduction Fund, with Climate United Fund among the grantees fighting to keep the money. The EPA, under the Trump administration, had sought to rescind the funds by alleging they were vulnerable to fraud or waste, but a divided ten-judge panel ruled against the agency, reversing course after a smaller three-judge panel had sided with the EPA 2-1 in September 2025. The case now returns the injunction to force, keeping the funds out of the administration's reach for now while the underlying legal fight continues.

  • D.C. Circuit blocks EPA from clawing back $20bn in green bank grants
  • Full court reversed a prior 2-1 panel ruling favouring the EPA
  • Case centres on Climate United Fund and other IRA-era grantees

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