EPA should not have been blocked from terminating 'green bank' funds, appeals court says
Story by MICHAEL PHILLIS • 1h
WASHINGTON (AP) — The Trump administration was handed a win by a federal appeals court on Tuesday in its effort to freeze billions of dollars and terminate contracts for nonprofits to run a “green bank” aimed at financing climate-friendly projects.
The head of the Environmental Protection Agency had blasted the Biden-era program as a waste of taxpayer money, tried to claw back funding that had already been distributed and accused the nonprofits of mismanagement.
A lower court said the EPA couldn't support Administrator Lee Zeldin's accusations and that the agency was wrong to try and end contracts with the nonprofits without substantiating allegations against them. On Tuesday, a divided federal appeals court ruled 2-1 in the agency's favor, saying the EPA should not have been blocked from terminating the grants and that the arguments by the climate groups have no place in federal district court.
Instead, the case should be heard in a federal claims court that hears contract disputes, the appeals court ruled in a decision written by U.S. Appeals Court Judge Neomi Rao, who was appointed by President Donald Trump in his first term. The decision was a major loss for the groups who said they can only seek monetary damages in district court. The groups in this case were seeking an order allowing them immediate access to their funds, which total about $16 billion.
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