Environmental organizations lost their bid Tuesday to immediately access $16 billion in grant money that was frozen by the Trump administration earlier this year.
In a split decision, a three-judge panel from the DC Circuit Court of Appeals found the Trump administration was within its rights to stop $20 billion from the Biden-era Greenhouse Gas Reduction Fund that was promised to eight groups.
“While some grantees may be forced to shutter their operations during the litigation, their harms do not outweigh the interests of the government and the public in the proper stewardship of billions of taxpayer dollars,” Tuesday’s ruling reads.
The DC court said it doesn’t have jurisdiction over the matter and directed plaintiffs to the Court of Federal Claims.
Tuesday’s ruling reversed a lower court order that would have given the groups access to some of the funding while the case plays out.
Judges Neomi Rao and Gregory Katsas — the majority of the three-judge appellate panel — were both Trump appointees and worked in his administration during his first term. Dissenting Judge Nina Pillard was appointed by former President Barack Obama.
“The majority allows the government to seize plaintiffs’ money based on spurious and pretextual allegations and to permanently gut implementation of major congressional legislation,” Pillard wrote in her dissent.
The money — which was being held by Citibank — was frozen after Environmental Protection Agency Administrator Lee Zeldin claimed that the allocations were quietly arranged before then-President Joe Biden left office to benefit left-wing non-profits staffed by alums of the Obama and Biden administrations.
At the time, Zeldin highlighted a video released by right-wing group Project Veritas — in which a Treasury Department official was caught on hidden camera comparing the handouts to “throwing gold bars off the edge” of the Titanic.
Under Biden’s 2022 Inflation Reduction Act, the money was awarded to non-governmental organizations to help with initiatives like installing solar panels and making buildings more energy efficient. Tens of millions of dollars had already been disbursed to some of the groups prior to the freeze.
Beth Bafford, the CEO of plaintiff group Climate United, said she is “disappointed” with Tuesday’s ruling.
“While we are disappointed – albeit unsurprised – by the panel’s decision, we stand firm on the merits of our case: EPA unlawfully froze and terminated funds that were legally obligated and disbursed,” Bafford said.
“This is another hurdle in our fight to lower energy costs for those who need it most while creating jobs for hardworking Americans, but we will continue to press on for communities across the country that stand to benefit from clean, abundant, and affordable energy,” the statement added. “This is not the end of our road.”
Meanwhile a spokesperson with the EPA lauded the decision as “fantastic.”
“It’s fantastic to see reason prevail in the court system,” the spokesperson said. “EPA has a duty to be an exceptional steward of taxpayer dollars.
“Administrator Zeldin cancelled these grants due to well documented concerns about self-dealing and conflicts of interest, unqualified recipients, and intentionally reduced agency oversight,” the statement continued. “The gold bar recipients were wrong about jurisdiction all along and wrong to act so entitled to these precious public funds that belong to hardworking American taxpayers.”
