A federal judge has ruled that the Trump administration must immediately restore $176 million in community and environmental grants that had been frozen earlier this year. The decision, issued on Monday by U.S. District Court Judge Richard Gergel in Charleston, South Carolina, marks a significant victory for environmental advocates and nonprofit organizations nationwide.
The grants, awarded under the 2022 Inflation Reduction Act and the 2021 Infrastructure Investment and Jobs Act, were intended to support projects ranging from energy-efficient affordable housing to air pollution monitoring. However, in early 2025, the Trump administration issued executive orders freezing these funds, citing concerns over “inefficient spending” and misalignment with administration priorities. This move disrupted numerous initiatives and led to layoffs and project suspensions.(selc.org)
The Southern Environmental Law Center (SELC), representing 11 nonprofit organizations and six cities, filed a lawsuit challenging the funding freeze. The plaintiffs argued that the executive orders violated the Administrative Procedure Act and infringed upon the separation of powers by overriding congressional appropriations. Judge Gergel agreed, stating that the executive branch does not have the authority to disregard congressional mandates.(selc.org)
While the ruling reinstates 32 of the 38 affected grants, six grants under the U.S. Department of Agriculture’s Climate Smart Commodities program were not reinstated. The USDA had canceled this program in March, citing concerns about its efficiency and alignment with the administration’s priorities. The court indicated it would consider the legality of these cancellations separately.
Environmental advocates view this decision as a reaffirmation of the principle that the executive branch must adhere to congressional directives. Kym Meyer, SELC’s Litigation Director, emphasized that the ruling underscores the importance of upholding the rule of law and ensuring that federal agencies honor their commitments to communities.
The Trump administration has indicated its intent to appeal the ruling. However, for now, the decision stands as a significant check on executive power and a win for communities and environmental justice initiatives across the country.
