A federal appeals court recently overturned a lower court’s ruling, significantly favoring the Trump Administration and putting a stop to billions of dollars in Biden-era climate grants. On Tuesday, the court ruled in a 2-1 decision, reversing U.S. District Judge Tanya Chutkan’s earlier injunction that had allowed eight ‘green’ nonprofits to access funds held at Citibank.
Back in the spring, Judge Chutkan had issued a ruling preventing Lee Zeldin, who had previously clawed back $20 billion in grants from the Greenhouse Gas Reduction Fund, from halting these funds. Citibank had complied by freezing money intended for the Coalition for Green Capital, Climate United Fund, and others. Chutkan had mandated that these frozen funds be unfrozen and distributed by Thursday. However, the Trump Administration swiftly appealed her decision, leading to the court’s current ruling.
The three-judge panel included Judges Rao and Katsas, both appointees of Trump, while Judge Pillard represented the dissent. Judge Rao, in her strongly worded majority opinion, critiqued Judge Chutkan’s judgment. “We conclude the district court abused its discretion in issuing the injunction,” she wrote. Rao explained that the claims from the grantees were likely to fail because they were fundamentally contractual in nature. Therefore, she asserted, jurisdiction resided solely with the Court of Federal Claims.
Moreover, Rao highlighted that even though there was some jurisdiction concerning the constitutional claim, it lacked merit. “The equities strongly favor the government, which on behalf of the public must ensure the proper oversight and management of this multi-billion-dollar fund,” she concluded, vacating the previous injunction.
This episode ties back to Zeldin’s earlier actions, which followed a revelation by an EPA advisor. In a Project Veritas undercover video, EPA Advisor Brent Efron claimed there was an “insurance policy” set against Trump’s victory. “Get the money out as fast as possible before they [Trump Administration] come in…it’s like we’re on the Titanic and we’re throwing gold bars off the edge,” Efron stated, encapsulating the urgency felt within the agency to distribute funds before the administration changed hands.
This recent ruling by the appeals court marks a significant legal win for the Trump Administration. It reinforces the notion of proper oversight in managing taxpayer dollars and reflects a broader trend of accountability regarding administration grants and the intentions behind their allocations.
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