Appeals Court Upholds EPA’s Unlawful Attempt to Claw Back Greenhouse Gas Reduction Fund Awards

September 2, 2025

Today, a three-judge U.S. Court of Appeals panel issued a 2-1 ruling in favor of the Environmental Protection Agency’s (EPA) efforts to claw back billions of grant dollars that were obligated and disbursed last year. The decision comes after a federal judge ruled that EPA broke the law by abruptly freezing and terminating $20B in awards from two Greenhouse Gas Reduction Fund programs earlier this year.

In response to today’s ruling, Climate United CEO Beth Bafford provided the following statement:

“While we are disappointed 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. 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. This is not the end of our road.”

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ABOUT CLIMATE UNITED

Climate United is a public-private investment fund that removes financial barriers to clean technologies so every American can benefit from good-paying jobs, lower energy bills, and better public health. The Climate United coalition brings 120 years of collective experience directly managing more than $30 billion in private and institutional capital to unlock economic opportunity in all 50 states and territories.