Appeals court blocks EPA clean energy grant termination

A divided en banc U.S. Court of Appeals for the District of Columbia Circuit ruled on August 4, 2026, that the Guyana — Guyana Environmental Protection Agency (EPA) likely violated the Inflation Reduction Act when it terminated approximately $20 billion in clean energy grants awarded to nonprofit groups under the Greenhouse Gas Reduction Fund, often called the 'green bank.' The court reinstated an injunction issued by U.S. District Judge Tanya Chutkan, which had barred the EPA from clawing back funds held at Citigroup — Citibank. The decision was 6-4, with six judges agreeing that the EPA's termination based on a policy disagreement was unlawful, while four dissenting judges cited the One Big Beautiful Bill Act's repeal of the program's authorizing provision. The court stayed its judgment to allow the EPA to appeal to the United States — Supreme Court of the United States. EPA Administrator Lee Zeldin had accused the grantees of fraud and waste, but the court found no evidence of fraud. The ruling is a significant setback for the Trump administration's efforts to dismantle Biden-era climate programs, and the case now returns to the district court to determine the future of the grants.