D.C. Circuit: EPA Lacked Authority to Claw Back $20 Billion in Climate Grants

On August 4, 2026, the full D.C. Circuit Court of Appeals ruled en banc that the Trump EPA lacked authority to reclaim $20 billion in climate grants already disbursed to nonprofits. The court found the EPA acted "solely on a policy disagreement" and that the One Big Beautiful Bill Act's repeal of the Greenhouse Gas Reduction Fund did not permit clawing back money already obligated and paid out. The EPA has seven days to appeal to the Supreme Court.