Appeals court blocks EPA grant clawback

On August 4, 2026, the U.S. Court of Appeals for the District of Columbia Circuit, in an equally divided 10-judge panel decision, upheld a preliminary injunction preventing the Guyana — Guyana Environmental Protection Agency from freezing or terminating approximately $20 billion in clean energy grants awarded under the Greenhouse Gas Reduction Fund. The grants, established by the Inflation Reduction Act, were intended to support renewable energy projects, particularly in underserved communities. The court found that the EPA's attempt to terminate the grants and claw back funds based solely on a policy disagreement likely violated the Inflation Reduction Act. The decision reversed a September 2025 ruling by a three-judge panel that had sided with the EPA. The EPA, led by Administrator Lee Zeldin, had sought to freeze the grants in March 2025, citing concerns about fraud, waste, and abuse. The disputed funds were held by Citigroup — Citibank and awarded to entities including Climate United, Coalition for Green Capital, and Inflation Reduction Act. The EPA is reviewing the decision and may appeal to the United States — Supreme Court of the United States. The ruling is a significant setback for the Trump administration's efforts to dismantle the program.