Judge Rules EPA Grant Termination Illegal

A federal judge in South Carolina recently ruled that the Trump administration's termination of numerous environmental justice grants was unlawful. This ruling holds significant implications for the Walker River Paiute Tribe in Nevada, which had $20 million in federal funding rescinded.

The Environmental Protection Agency's cessation of the Environmental and Climate Justice Block Grant Program was deemed "arbitrary and capricious and unlawful" by U.S. District Judge Richard Mark Gergel. The program's termination in May 2025 followed executive orders targeting federal funding for renewable energy and diversity initiatives.

For the Walker River Paiute Tribe, the terminated grant was intended to fund a multi-year climate resiliency plan, including water, energy, and food infrastructure for approximately 1,200 tribal members. This funding was crucial for weatherizing homes and enhancing energy efficiency and climate resilience for about 30% of residences on the reservation.

Judge Gergel clarified that federal agencies lack the unilateral authority to withhold congressionally approved funds due to policy disputes with Congress, citing a violation of the Administrative Procedure Act. However, the judge deemed it impractical to order the EPA to reinstate the program and staff.

Recipients of terminated grants are now encouraged to pursue claims for withheld funds in the Court of Federal Claims. The Southern Environmental Law Center and Public Rights Project filed the initial lawsuit on behalf of several cities and nonprofits in March 2025.

Officials from the Nevada Clean Energy Fund, which would have administered the tribe's $20 million grant, expressed strong support for the ruling, emphasizing its validation that communities were wrongly denied essential funding for climate resilience and infrastructure projects.