Americans’ hard-earned tax dollars remain protected as an appeals court steps in to halt the release of $20 billion in climate funds. The decision, handed down late Wednesday, stops the funds from flowing to green activist groups in a massive win for the Trump administration.
The Hill reported that the appeals court’s ruling temporarily freezes $20 billion allocated under the Democrats’ Inflation Reduction Act, overriding a lower court’s order to release the funds to climate organizations.
This action follows a contentious legal back-and-forth between the Biden and Trump administrations. The funds, intended for climate-friendly projects, now hang in limbo.
During the Biden administration, the $20 billion was awarded to eight nonprofit institutions focused on climate finance.
These funds were part of a broader program embedded in the Inflation Reduction Act. The allocations aimed to support projects aligned with progressive environmental goals.
Since taking office, the Trump administration has aggressively sought to reclaim the $20 billion. The administration argues that these funds belong to American taxpayers, not climate-focused nonprofits. This stance reflects a commitment to fiscal responsibility and prioritizing national interests.
Earlier this week, District Judge Tanya Chutkan issued an order blocking the Environmental Protection Agency (EPA) from reclaiming the funds.
Her ruling directed Citibank to release the money to green bank groups as early as Thursday. Chutkan’s decision set the stage for the latest legal showdown.
The EPA, undeterred, swiftly appealed Chutkan’s order, escalating the case to the appeals court. The agency’s resolve reflects the broader Trump administration’s push to undo Biden-era policies. Taxpayers deserve clarity on how their money is spent, the EPA contends.
Late Wednesday, the appeals court issued its ruling, halting the release of the funds. The panel ordered that the $20 billion neither be returned to the U.S. Treasury nor disbursed to climate organizations. This decision buys time for further consideration of the case.
The EPA declined to comment on the appeals court’s order, signaling a cautious approach as the legal battle continues.
The agency’s earlier statement, however, was resolute. “Are terminated, and the funds belong to the U.S. taxpayer,” the EPA declared, emphasizing its confidence in the appeal.
“We couldn’t be more confident in the merits of our appeal and will take every possible step to protect hard-earned taxpayer dollars,” the EPA added. This commitment resonates with conservatives who prioritize fiscal accountability. The agency’s stance aligns with broader efforts to curb unchecked federal spending.
Climate organizations, meanwhile, remain steadfast in their pursuit of the funds. Beth Bafford, CEO of Climate United, expressed determination to move forward. “We remain firm on the merits of our case,” Bafford said, signaling no retreat.
“We will press forward to deliver on our promises to communities across America,” Bafford continued.
Her statement reflects the resolve of green bank groups to secure the $20 billion. These organizations argue that the funds are critical for advancing climate-friendly initiatives.
The Inflation Reduction Act, passed under Democratic control, has long been a lightning rod for controversy. Its climate provisions, including the $20 billion program, face scrutiny from conservatives wary of government overreach. The appeals court’s ruling adds another chapter to this ongoing saga.
For now, the $20 billion remains frozen, a victory for those advocating fiscal restraint. The appeals court’s decision ensures that no funds will flow to climate groups until the case is fully vetted. This pause allows for a thorough review of the program’s legality.