President Donald Trump, left, speaks during an event with Environmental Protection Agency director Lee Zeldin in the Roosevelt Room of the White House, Feb. 12, 2026, in Washington. (AP Photo/Evan Vucci, File)

2026-08-04T17:50:59Z

WASHINGTON (AP) — A divided federal appeals court on Tuesday said the Trump administration improperly terminated a multi-billion program to boost clean energy projects, handing a win to a coalition of nonprofits picked to run the Biden-era effort.

Climate United Fund and other nonprofits won’t have access to their funds immediately as the decision will be put on hold for several days giving the Environmental Protection Agency time to ask the Supreme Court to step in.

The split ruling by the full U.S. Court of Appeals for the District of Columbia is a loss for the Trump administration in one of its earliest efforts to dismantle President Joe Biden’s campaign to reduce climate-warming greenhouse gases. The Greenhouse Gas Reduction Fund, commonly referred to as a “green bank,” is a congressionally authorized program that provided money to nonprofits that would then make loans and invest in small energy projects, energy-efficient buildings and transportation.

EPA Administrator Lee Zeldin accused Climate United Fund and other nonprofits picked to run the green bank of mismanagement and potential fraud. He froze billions that had been placed in a Citibank account for the program and then terminated their grants. The groups disputed any wrongdoing and sued, arguing the Trump administration broke the law and violated the Constitution by not spending money authorized by Congress.

In September, a divided three-judge panel of the same appeals court overturned a lower court and said the Trump administration had broad power to cancel grants without having to face charges of illegality in federal court. The full appeals court agreed to revisit that decision, a rare occurrence reserved for the most important cases.

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The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment

MICHAEL PHILLIS





Phillis is an Associated Press reporter covering the environment with a focus on water. He can be reached on Signal at mjphillis.15.















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