A federal judge on Thursday overturned an Environmental Protection Agency decision under President Donald Trump to shutter a $2.8 billion block grant program.
The EPA’s move to terminate the Biden-era Environmental and Climate Justice Block Grant Program last year was “illegal,” U.S. District Judge Richard Mark Gergel wrote in an opinion.
In February 2025, the EPA started to unravel the ECJ Program following President Donald Trump’s executive order “Unleashing American Energy” that required agencies to “pause the disbursement” of such funds.
Not long after, a coalition of nonprofits and cities — including Baltimore, Nashville and San Diego — sued the federal government to retain grants they had been awarded under the program.
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On Thursday, Gergel, an Obama appointee, sided with the coalition, writing that “there is no doubt that Defendants’ internal guidance terminating the ECJ Program … was arbitrary and capricious and unlawful.’’
However, he denied the coalition’s request to compel the EPA to reimplement the ECJ program by taking measures such as rehiring staff, writing, “the requested relief appears impractical.”
“Plaintiffs, however, are of course free to pursue their claims for alleged unlawful termination of their grants in the CFC,” Gergel wrote in his ruling, referring to the Court of Federal Claims.
Republicans’ “One Big Beautiful Bill” Act of 2025 ordered the EPA to pull back any remaining money obligated to the program, although most funds had already been awarded.
The EPA did not immediately respond to a request for comment.
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