A U.S. appeals court has ruled that the Environmental Protection Agency under the Trump administration can terminate more than $16 billion in climate-related grants created under the 2022 Inflation Reduction Act.

The grants, intended to reduce greenhouse gas emissions, had been awarded to nonprofit organizations through the Greenhouse Gas Reduction Fund. The court determined that disputes over the funds were contractual and should be heard in the U.S. Court of Federal Claims, and also found the EPA acted within its discretion.

Manufacturers monitoring federal climate and energy programs are likely to see continued shifts in funding priorities under the Trump administration. 9/3/2025