Court clears path for federal government to terminate $3 billion environmental grants program

For immediate release: Aug. 29, 2025
Media contact: Jackie Jena, jackie@publicrightsproject.org

Washington, D.C. — A federal district judge today dismissed the case and denied a request to temporarily block the Environmental Protection Agency’s (EPA) termination of the Environmental and Climate Justice (ECJ) Block Grant Program, a decision that leaves nearly $3 billion in federal funding in jeopardy.

Filed in June by Public Rights Project, Earthjustice, the Southern Environmental Law Center and Lawyers for Good Government, Appalachian Voices v. EPA argues that the EPA unlawfully terminated the grant program in violation of both the Constitution and the Administrative Procedure Act — and in direct defiance of clear Congressional direction to distribute the funds. The suit was brought by seven local governments, one Tribe and 15 nonprofits. The ECJ Block Grant Program was created and funded through the Inflation Reduction Act to support more than 350 local governments, Tribes, community organizations and academic institutions nationwide.

“This decision is a major setback for communities and critical environmental projects,” said Jill Habig, founder and CEO of Public Rights Project. “The court allows the federal government to continue freezing funding for climate resilience, delaying justice for hundreds of grantees. But this fight is far from over. We remain committed to ensuring these taxpayer dollars go back to cities, counties and Tribes.”

The ECJ Block Grant Program is not just about climate — it is about justice. These grants were specifically created to serve communities that have been historically excluded from federal programs and disproportionately harmed by pollution and climate change. The termination of the program has forced many local governments to halt shovel-ready projects, lay off staff and scale back efforts to reduce pollution, strengthen climate resilience and protect public health.

In Alaska, a project to stabilize a rapidly eroding riverbank near the Native Village of Kipnuk has been stalled. With the village built on melting permafrost and harsh winter conditions limiting construction, Tribal leaders are scrambling to protect the community while they still can — without federal support. The funding freeze also forced them to lay off a newly hired bookkeeper and postpone additional hires.

Public Rights Project is representing:

• Allegheny County, Penn.
• City and County of San Francisco, Calif.
• City of Sacramento, Calif.
• City of Springfield, Mass.
• Kalamazoo County, Mich.
• Martin Luther King County, Wash.
• Native Village of Kipnuk, Alaska
• Treasure Island Mobility Management Agency

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About Public Rights Project

As a nonpartisan nonprofit organization, Public Rights Project helps local government officials fight for civil rights. We do this by building their capacity to protect and advance civil rights, convening and connecting them on issues of civil rights, and providing legal representation to governments to help them win in court on behalf of their residents. Since our founding, we’ve built a network of over 1,300 partners, including elected officials and 227 government offices across all 50 states, and helped recover over $46 million in relief for marginalized people. www.publicrightsproject.org

Coalition statement: 

“We’re disappointed by the court’s ruling, which lets the federal government cut off  congressionally approved environmental justice funds. Communities across the country are already feeling the impact — from climate projects on hold to staff layoffs.  

While this ruling is a setback, it is not the end of the fight. Our coalition remains committed to holding the federal government accountable and ensuring that the intent of Congress — and the needs of local communities — are not disregarded. From climate resilience to clean water access, these projects matter. We’re exploring all available options to continue this fight.