D.C. Circuit: EPA Had No Authority to Reclaim $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 paid to nonprofits. The court found the EPA acted on policy disagreement alone, and that the One Big Beautiful Bill Act's repeal of the Greenhouse Gas Reduction Fund did not permit clawing back obligated funds. The EPA has seven days to appeal.