By Jeff St. John, Canary Media, 4 August 2026
A federal appeals court has ruled that the Environmental Protection Agency acted improperly in terminating billions of dollars of “green bank” financing last year, setting up a potential showdown before the U.S. Supreme Court over one of the Trump administration’s earliest attacks on a key Biden-era climate program.
Tuesday’s divided ruling from the U.S. Court of Appeals for the D.C. Circuit is a victory for the nonprofit groups targeted by EPA Administrator Lee Zeldin as part of a broader attack on the Biden administration’s clean energy and climate spending.
In March 2025, the EPA moved to freeze $20 billion in funding under the Greenhouse Gas Reduction Fund (GGRF), which was created by the 2022 Inflation Reduction Act and is commonly known as the federal “green bank” program. The ambitious effort was meant to inject large-scale federal funding into climate and clean-energy lending pioneered by state-level green banks — lending institutions that have successfully enabled $21.8 billion in public-private investment to date.
The idea was to put federal money to work to boost financing for clean energy and climate-oriented projects in communities that have traditionally lacked access to it. That could spur a virtuous cycle that could yield between $150 billion to $250 billion in private-sector investment over the next 10 years, according to an April 2023 analysis by consultancy McKinsey.
That effort has been frozen in its tracks by the current EPA, forcing the nonprofits awarded grants to curtail operations. Those groups argued that the EPA’s actions violated the law by not spending money authorized by Congress.