Skip to main content
Climate FundingStakes WatchAug 27, 2026, 12:56 PM· 4 min read

White House Employs Administrative Delays to Dismantle Climate Justice Policy Following Court Losses

Federal courts have repeatedly ruled that the White House unlawfully terminated billions in climate justice grants, but the administration is utilizing appellate delays to keep the funds frozen. The strategy highlights a growing reliance on administrative sabotage to dismantle statutory programs.

By Deniz Kaya

How this story has developed

This report is part of a developing story — read the earlier chapters below.

  1. The Quiet End of the US Administrative State's Independent Expertise
  2. How the OMB's Proposed 'Political Review' Rule Could Reshape US Scientific Funding
  3. The Mechanics of OMB Grant Termination: How Conditional Funding Shapes American Federalism
  4. White House Employs Administrative Delays to Dismantle Climate Justice Policy Following Court Losses (this article)
Environmental & Community Advocates 45%Legal & Administrative Observers 40%Executive Power Proponents 15%
Environmental & Community Advocates
Argues the administration is unlawfully weaponizing the bureaucracy to nullify congressionally authorized climate programs.
Legal & Administrative Observers
Focuses on the constitutional implications of administrative sabotage and the shifting balance of power between the executive and judicial branches.
Executive Power Proponents
Maintains that freezing the funds prevents mismanagement and that appealing court orders is a standard exercise of executive authority.

How we got here

  1. August 2022

    Congress passes the Inflation Reduction Act, authorizing billions for the Greenhouse Gas Reduction Fund and climate justice block grants.

  2. Late 2025

    EPA Administrator Lee Zeldin freezes the $20 billion green bank funds and terminates the grants, alleging mismanagement.

  3. December 2025

    The administration announces the closure of the National Center for Atmospheric Research (NCAR) in Colorado.

  4. June 2026

    U.S. District Judge Richard Mark Gergel rules the termination of the $1.6 billion climate justice program was illegal.

  5. August 4, 2026

    The full U.S. Court of Appeals for the D.C. Circuit rules the EPA's freeze of the $20 billion green bank was unlawful.

  6. August 2026

    The EPA files motions to halt the court orders while it appeals the decisions to higher courts.

Why it matters

The administration's strategy of using bureaucratic delays and appeals to freeze congressionally authorized funds demonstrates a new executive approach to nullifying statutory programs without legislative repeal, directly impacting billions of dollars intended for community climate resilience.

When the full U.S. Court of Appeals for the District of Columbia handed down its ruling this month, the mandate was unambiguous: the Environmental Protection Agency had broken the law by freezing $20 billion in clean energy grants. Yet, weeks after the decisive courtroom defeat, not a single dollar has moved from the Citibank accounts where the funds are trapped. The White House has discovered a potent new weapon in its war against Biden-era climate policy: if you cannot win in court, you can simply break the machinery of government to ensure the money never flows.[1][4]

The most glaring example is the $20 billion Greenhouse Gas Reduction Fund, a "green bank" created by the 2022 Inflation Reduction Act to finance clean-energy infrastructure. When EPA Administrator Lee Zeldin froze the funds and terminated the grants over alleged mismanagement, the full U.S. Court of Appeals for the District of Columbia ruled the move illegal, noting the administration cannot claw back congressionally appropriated money based solely on a policy disagreement.[1][4]

A parallel defeat occurred in South Carolina, where U.S. District Judge Richard Mark Gergel ordered the EPA to restore $1.6 billion in Environmental and Climate Justice Block Grants. The judge explicitly noted that the EPA would suffer no harm from reinstating the program, while the communities relying on the funds would be actively injured by their termination.[5]

Federal appellate courts have repeatedly ruled that the administration's termination of climate justice grants violates the law.

But the administration's response to these rulings reveals a calculated pivot from legal defense to bureaucratic attrition. The EPA has immediately filed motions to halt the court orders while it appeals to the Supreme Court and the 4th U.S. Circuit Court of Appeals. The legal merit of these appeals is secondary to their practical effect: they ensure the funds remain frozen in Citibank accounts, inaccessible to the nonprofits and cities that need them, while the clock runs out on the funding authorizations.[1][5]

The strongest counter-argument to this framing is that the administration is merely exercising its right to appellate review, a standard practice for any executive branch defending its policy priorities. Proponents of the administration's approach argue that the EPA has a fiduciary duty to halt the disbursement of billions of dollars if it genuinely believes the recipient organizations are mismanaging the funds, and that seeking Supreme Court intervention is the proper constitutional remedy for a lower court loss.[1][4]

However, this defense ignores the broader pattern of executive action that extends far beyond standard appellate procedure. The administration is not just appealing court orders; it is actively dismantling the scientific infrastructure that justifies climate policy in the first place. The recent directive to close the National Center for Atmospheric Research (NCAR) in Colorado—a move now facing a lawsuit from the Environmental Defense Fund—demonstrates a willingness to bypass the Administrative Procedure Act entirely to achieve ideological goals.[3]

The administration has directed the closure of the National Center for Atmospheric Research in Colorado, prompting lawsuits from environmental groups.
However, this defense ignores the broader pattern of executive action that extends far beyond standard appellate procedure.

This is what legal scholars identify as administrative sabotage: using the mundane tools of agency management—budget allocations, staffing decisions, and litigation postures—to deliberately kill a statutory program. Rather than navigating the arduous process of proposing new rules and soliciting public comment to rescind regulations, the administration is using its control over the bureaucracy to nullify laws it cannot convince Congress to repeal.[6]

This strategy effectively creates a new, unconstitutional executive veto. By tying up the $20 billion green bank and the $1.6 billion in climate justice grants in endless procedural delays, the White House achieves its retrenchment goals regardless of what the judiciary dictates. The courts may rule that the administration broke the law, but if the money never reaches the communities, the administration still wins.[1][5]

For the cities, tribal governments, and nonprofits relying on these funds to build climate resilience and lower energy costs, the legal victories are entirely pyrrhic. They have won the argument that the administration cannot unilaterally cancel their grants, but they remain unable to access the capital required to execute their projects.[2][4]

As the Supreme Court prepares to weigh in on the EPA's appeals, the stakes extend far beyond environmental policy. If the executive branch can successfully use administrative friction to run out the clock on congressionally mandated programs, the balance of power shifts permanently. The administration is proving that a determined executive does not need to win in court to dismantle a law; it only needs to ensure the bureaucracy refuses to function.[1][6]

What to know

  • The full U.S. Court of Appeals for the D.C. Circuit ruled that the EPA unlawfully froze $20 billion in clean energy grants.
  • A federal judge in South Carolina separately ordered the administration to restore $1.6 billion in Environmental and Climate Justice Block Grants.
  • Despite the courtroom losses, the administration is using appellate delays to keep the funds frozen in Citibank accounts.
  • The administration has also directed the closure of the National Center for Atmospheric Research (NCAR), prompting further litigation.
  • Legal scholars describe this strategy as "administrative sabotage," using bureaucratic friction to effectively veto statutory programs.

Where opinion splits

The Administration's Defense

The executive branch argues it has a fiduciary duty to halt funds it believes are being mismanaged.

Proponents of the EPA's actions argue that the administration is simply exercising its constitutional right to appellate review and protecting taxpayer dollars. By freezing the $20 billion Greenhouse Gas Reduction Fund, Administrator Lee Zeldin asserted he was preventing waste and fraud by the recipient nonprofits. From this perspective, seeking Supreme Court intervention is not "sabotage," but the appropriate legal mechanism to challenge a lower court ruling that the administration believes infringes on executive discretion over agency priorities.

Environmental Advocates' View

Climate groups view the delays as an unconstitutional executive veto designed to run out the clock on statutory programs.

Environmental organizations and the nonprofits selected to administer the grants argue that the administration is blatantly ignoring congressional intent and judicial mandates. They contend that the White House is weaponizing the appellate process to ensure that the funding authorizations expire before the litigation concludes. By dismantling scientific institutions like NCAR and refusing to disburse block grants, advocates argue the administration is inflicting irreversible harm on vulnerable communities and the broader climate resilience effort, regardless of the ultimate legal outcomes.

Sources

Source coverage

6 outlets

3 viewpoints surfaced

Environmental & Community Advocates 45%Legal & Administrative Observers 40%Executive Power Proponents 15%
  1. [1]Al JazeeraLegal & Administrative Observers

    US court deals blow to Trump's bid to scrap climate grant programme

    Read on Al Jazeera
  2. [2]Southern Environmental Law CenterEnvironmental & Community Advocates

    VICTORY: Federal court rules Trump admin's grant terminations were illegal

    Read on Southern Environmental Law Center
  3. [3]Inside Climate NewsEnvironmental & Community Advocates

    Lawsuit Seeks to Block Closure of Top Federal Climate Research Center

    Read on Inside Climate News
  4. [4]The Economic TimesLegal & Administrative Observers

    A divided federal appeals court rules Trump administration improperly terminated a multi-billion-dollar Biden-era programme

    Read on The Economic Times
  5. [5]Highland County PressLegal & Administrative Observers

    Two courts this month dealt blows to the Trump administration's attempts to withdraw clean energy and climate grants

    Read on Highland County Press
  6. [6]Insurance JournalLegal & Administrative Observers

    Trump EPA Losing Environmental Rollback Cases in Court

    Read on Insurance Journal

Comments

Stay informed

Every angle. Every day.

Get perspectives stories with full source coverage and perspective breakdowns delivered to your inbox.