Federal Judges Lift Freeze on Climate Funding Amidst Legal Battles

On April 16, 2025, significant rulings emerged from two federal courts, providing a notable victory for nonprofit organizations striving to access climate funding previously approved during the Biden administration. U.S. District Judge Tanya S. Chutkan, based in Washington, D.C., authorized the release of up to $625 million in climate grants that had been suspended since February, primarily under the Greenhouse Gas Reduction Fund, often referred to as the "green bank" program. This fund has garnered considerable attention from critics, particularly EPA Administrator Lee Zeldin, who have contested its efficacy and funding distribution.

In a parallel ruling, Judge Mary S. McElroy of the Rhode Island federal court mandated the unfreezing of environmental and infrastructure funds allocated to nonprofits by the Biden administration. During her judgment, Judge McElroy argued that the indefinite halt imposed by the Trump administration lacked reasonable justification and noted that plaintiffs were likely to successfully demonstrate the arbitrary nature of the freezes.

These lawsuits are indicative of wider legal challenges against the Trump administration's attempts to completely freeze multiple billions of dollars in funding designated through legislation enacted in 2021 and 2022, namely the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. Multiple judges have previously responded to these funding freezes, yet the Trump administration has leaned on legal loopholes to maintain the pause, asserting that such actions align with various executive orders issued since Trump took office.

The rulings mark a pivotal moment in the ongoing battle over environmental funding, as stakeholders and litigants continue to contest the barriers limiting access to essential financial resources aimed at combating climate change and enhancing infrastructure.