We’re making progress unlocking critical federal funds, thanks to states fighting back. As of February 25, all obligated climate grants at EPA (with the glaring exception of the Greenhouse Gas Reduction Fund) are unfrozen, including Solar for All, the Clean School Bus Program, and the Climate Pollution Grants are now back online. At other agencies, the situation is murkier. The U.S. Department of Transportation is ordering an indefinite review and suspension of NEVI guidance for states and is holding up essential funding for mass transit, including high-speed rail in California. Meanwhile, the U.S. Department of Agriculture announced late last week that several programs supporting renewable energy were back online, but vital initiatives like the Rural Energy for America (REAP) remain on hold, leaving farmers and others counting on that funding in limbo.
What Is the Status of Trump’s Illegal Funding Freeze?
On January 27, just a week into his term, President Trump’s Office of Management and Budget issued a memo directing federal agencies to withhold contractually obligated grants across the federal government. This sweeping directive has had significant and devastating on-the-ground impacts, which Evergreen and movement partners are tracking closely. Among the vast amount of funds threatened by this move are billions in obligated, bipartisan funding for states, local governments, businesses, and community organizations that put people to work building the clean energy economy we desperately need. This funding is also critical to lowering energy costs and reducing harmful pollutants for households. Immediately after this illegal and damaging guidance was issued, states and other award recipients were prevented from accessing funding under programs like Solar for All, which is designed specifically to install solar technology in low-income communities, and the Climate Pollution Reduction Grants, a key program supporting state climate leadership in reducing pollution across key sectors of our economy.
States Are Fighting Back—And It’s Working
State and local leaders mobilized right away to defend critical programs from Trump’s illegal cuts, and we’re starting to see early successes in their efforts to fight back. Democratic Attorneys General, who spent the months since the election preparing to defend the rule of law, challenged this action immediately on behalf of their states. We also saw governors intervene directly where that was necessary. New York Attorney General Tish James rightly said that the action “violated the constitution” and was trampling on the powers of Congress to allocate funding. Nonprofit organizations have also filed their own lawsuits, securing one of many recent court orders for the Trump administration to undo the illegal freeze.
After weeks of harrowing uncertainty and real damage being inflicted on communities across the country, the aggressive strategy of litigation coupled with public pressure is bearing fruit. Courts are increasingly running out of patience with the Trump administration’s antics, ordering the White House and relevant agencies to reverse course and resume the disbursement of funds to recipients. As of today, states and other grantees are able to access more of their funds thanks to this effort. For example, at EPA, programs like the Clean School Bus Program are now accessible again for school districts, and states are having an easier time drawing down CPRG and Solar for All funds. Earlier this week, Governor Shapiro announced that most, but not all, of Pennsylvania's impacted federal funding was once again accessible to state and local governments.
The situation is evolving rapidly and subject to change, but fighting back is making a difference. We need state leaders to keep standing up to this lawless and reckless administration over the next four years, and this battle is an early signal that aggressive and early state intervention can move the needle significantly.
The Threat Is Evolving
While we’ve made real progress in countering this funding freeze in the past few weeks, Americans are still locked out of billions in bipartisan funding and programs. As the courts continue to press the administration to restart the flow of funding, we’re seeing the administration get ever more creative when it comes to denying communities funds they are entitled to. This administration will stop at nothing to take a sledgehammer to any initiative that helps us equitably tackle the climate crisis, reshore good-paying manufacturing jobs, and lower energy costs. And as they adapt their strategy to work around court orders, we’ll need to adapt to fight them on new fronts.
Outside of the broad “freeze” being battled out in the courts, we’re starting to see this administration abuse the bureaucratic process to advance its agenda by ordering additional “reviews” to scrutinize spending it is ideologically hostile to. Earlier this month, the US Department of Transportation put critical funds for EV charging in its crosshairs (PDF), rescinding critical program guidance, as well as the approval of state implementation plans, for the NEVI program. Practically, this means that roughly $3 billion in investments to make electric vehicles more accessible and reliable across the entire country is on hold indefinitely.
Importantly, NEVI was enacted on a bipartisan basis as part of the Infrastructure Investment and Jobs Act and was designed to benefit consumers in every single state by deploying reliable charging options throughout the highway system and in communities. These funds have been allocated by formula to nearly every state across the country, and it’s vital that states and advocates press aggressively for proper implementation to resume.
Another glaring example of the administration’s more surgical malfeasance is the Greenhouse Gas Reduction Fund (GGRF). Earlier this month, EPA announced an attempt to terminate its financial agreement with Citibank, which is holding $20 billion in obligated funding under the Greenhouse Gas Reduction Fund. Specifically, this funding is earmarked for the National Clean Investment Fund (NCIF) and the Clean Communities Investment Accelerator (CCIA). This funding is poised to catalyze transformative public and private investments in low-cost technologies and building up community lending ecosystems across the country. GGRF awards are allocated for things like home energy efficiency upgrades and support for state and local green banks. It’s worth noting that this type of initiative once benefitted from bipartisan support. For example, Nevada’s Clean Energy Fund was established under a Republican governor.
The administration’s attacks on this commonsense program are baseless and can’t be allowed to stand, and is yet another example of their illegal “freeze” being implemented using a different tool. Just like the rest of the programs now coming back online, the GGRF awards are obligated federal funds the grant recipients are entitled to. This move by the Trump EPA is so egregious that senior officials have resigned from the agency in protest.
Where Are We Now and What Can We Do?
We’re entering a new phase of this critical battle against an authoritarian presidency. We’ve made real progress in pushing back against the sweeping funding freeze implemented last month. The courts are forcing the hand of the Trump administration, which is now beginning to bring key programs back online. But we can’t let up. There are still reports of grant recipients unable to draw down funds, and we can’t rest until every grant that is legally obligated is delivered to its intended recipients. And, widespread layoffs throughout the federal government imposed by an unelected billionaire threaten to hobble the implementation of programs even if they are technically "unfrozen."
As more funding is restored, we’ll need to come up with specific strategies to defend against the more surgical attacks being waged on programs like GGRF and NEVI. More litigation led by states and nonprofits will be necessary, and we’ll need to fight in the court of public opinion to demonstrate the costs of withholding these funds. But, our progress over the last few weeks offers a blueprint. With a sustained public outcry and aggressive legal action from state champions, we can ensure that investments in an equitable and prosperous clean energy future continue to reach communities across the country, creating more opportunities and lowering costs. We’re at an inflection point in the fight, and we can’t let up now.
