Anchor
Court fight over EPA's canceled environmental justice grants
Rule ChangesA judge voided the EPA's shutdown of a $2.8 billion community grant program but stopped short of forcing it back to life
June 12th, 2026: Judge voids the cancellationNew here? Follow stories to track developments over time. Create a free account to get updates when stories you care about change.
Overview
Updated Jun 13Community groups in Baltimore, Nashville, and San Diego were promised federal money to clean up pollution and cool overheated neighborhoods. On June 12, a federal judge ruled the EPA broke the law when it cut off the entire $2.8 billion program.
The win may be hollow. Judge Gergel declined to restart the program, and Congress had already rescinded unobligated portions of the funds in July 2025. A parallel class action at the D.C. Circuit Court of Appeals, where a three-judge panel appeared skeptical of the government's position in March 2026, is the next live legal path.
Why it matters
The ruling tests whether an agency can erase a program Congress funded by citing 'policy,' with billions for local pollution and heat projects at stake.
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Key Indicators
$2.8B
Program funding at stake
What the block grant program was set to send to community projects.
Feb. 2025
Program terminated
When the EPA cut off the whole program for 'policy reasons.'
Sept. 2026
Award deadline
The cutoff for awarding the funds. The judge refused to extend it, and Congress rescinded unobligated funds in July 2025, narrowing what could still flow.
$500K
Example community grant
What a North Carolina group received for neighborhood air sensors.
Related Media
US EPA cancelling all environmental justice grants, Washington Post reports | Reuters
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Court fight over EPA's canceled environmental justice grants
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People Involved
Richard Gergel
U.S. District Court judge, District of South Carolina
Voided the EPA's cancellation of the program
Lee Zeldin
EPA Administrator
Agency lost the ruling; may appeal
Kym Meyer
Litigation director, Southern Environmental Law Center
Reviewing the ruling, pressing EPA on compliance
Zealan Hoover
Former EPA senior advisor
Critic of the program's shutdown
Organizations Involved
U.S. Environmental Protection Agency (EPA)
Federal Regulatory Agency
Lost ruling on program-wide termination
The federal agency that regulates pollution and administers environmental grants.
Southern Environmental Law Center
Nonprofit legal organization
Lead plaintiff
A nonprofit legal group focused on environmental cases across the U.S. South.
Public Rights Project
Nonprofit legal organization
Co-plaintiff
A nonprofit that backs state and local governments in litigation over federal actions.
Earthjustice
Environmental Law Organization
Co-counsel in D.C. Circuit appeal
A nonprofit environmental law firm representing grantees in the Appalachian Voices class action.
Timeline
August 2022 June 2026
9 events
Latest: June 12th, 2026 · 3 months ago
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-
Judge voids the cancellation
Latest LegalJudge Gergel rules the program-wide termination unlawful and voids it, but declines to order the EPA to restart the program or extend its deadline.
-
Senate Democrats call on Zeldin to comply
PoliticalSenators Edward Markey, Tammy Duckworth, and Cory Booker applaud the Gergel ruling and call on Zeldin to follow the court's order. The three co-chairs of the Senate Environmental Justice Caucus urge the agency to resume funding reimbursements immediately.
-
D.C. Circuit panel questions EPA's rescission argument
LegalA three-judge D.C. Circuit panel hears oral arguments in Appalachian Voices v. EPA and appears skeptical that the One Big Beautiful Bill Act actually rescinded these grants. The judges question whether funds already identified for recipients were truly 'unobligated.'
-
Fourth Circuit backs the administration
LegalIn a related case, the Fourth Circuit Court of Appeals upholds termination of individual grants, treating the dispute as contractual.
-
D.C. district court dismisses class-action challenge
LegalA federal judge in Washington dismisses Appalachian Voices v. EPA, ruling that the APA claims belong in the U.S. Court of Federal Claims, not district court. Plaintiffs appeal to the D.C. Circuit.
-
Congress rescinds unobligated grant funds
LegislationPresident Trump signs the One Big Beautiful Bill Act, which rescinds unobligated balances under the IRA's Environmental and Climate Justice Block Grant program. The government later cites this as a reason the grants cannot be restored.
-
EPA kills the program
Agency DecisionAn EPA official terminates the entire block grant program, later testifying he did so for 'policy reasons.'
-
Trump orders a freeze
Executive ActionNew executive orders pause Inflation Reduction Act disbursements and direct agencies to close environmental justice offices.
-
Congress creates the program
LegislationThe Inflation Reduction Act sets aside $2.8 billion for environmental and climate justice block grants to community projects.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
February 1975
Train v. City of New York (1975)
The Nixon administration's EPA withheld billions in water-pollution control money that Congress had appropriated under the Clean Water Act. New York City and other cities sued to force the funds out. The Supreme Court ruled unanimously that the administrator could not refuse to allot the money Congress directed be spent.
Then
The EPA had to release the impounded water-cleanup funds to states and cities.
Now
The case became a marker for limits on the executive's power to refuse spending Congress has mandated.
Why this matters now
Both cases turn on the same question: can the executive branch refuse to spend environmental money Congress already appropriated?
June 2019
Department of Commerce v. New York (2019)
The Trump administration tried to add a citizenship question to the 2020 Census, saying it would help enforce the Voting Rights Act. The Supreme Court ruled 5-4 that the stated reason was contrived and blocked the question under the Administrative Procedure Act.
Then
The citizenship question was kept off the 2020 Census.
Now
Courts reaffirmed they can reject agency actions built on thin or pretextual justifications.
Why this matters now
Gergel applied the same law: an agency must give a real, reasoned basis, and 'policy reasons' alone did not clear that bar.
June 2020
Department of Homeland Security v. Regents (2020)
The first Trump administration moved to end DACA, the program shielding some immigrants brought to the U.S. as children. The Supreme Court ruled 5-4 that the rescission was 'arbitrary and capricious' because the agency failed to weigh the consequences and explain its choice.
Then
DACA stayed in place; the administration had to try again with better reasoning.
Now
The decision set a clear standard for how thoroughly agencies must justify reversing a major program.
Why this matters now
The phrase 'arbitrary and capricious' is exactly what Gergel used to void the EPA's shutdown of the grant program.
Sources
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