‘Thumb its nose at Congress’: Federal judge slams EPA for unlawfully killing $600 million in environmental justice grants

A federal judge ruled on Tuesday that the Environmental Protection Agency (EPA) unlawfully ended $600 million in environmental justice grants that were meant to help low-income areas and communities of color.

According to Politico, the grants, known as the Thriving Communities Grantmaking Program, were part of a larger $2.8 billion funding package under the Democrats’ Inflation Reduction Act. The program was designed to help community groups fight pollution in areas that face more environmental challenges than others.

Judge Adam Abelson of the U.S. District Court for the District of Maryland criticized the EPA’s actions, stating that the agency cannot “thumb its nose at Congress and refuse to comply with its directives.” He said this behavior clearly showed the agency acting beyond its legal authority.

Judge rules EPA must follow Congress’s environmental justice funding directives

The EPA had terminated these grants in February as part of the Trump administration’s broader move against diversity, equity, and inclusion programs, which aligns with conservative policy overhauls outlined in Project 2025 This led to a lawsuit from three regional grantmakers: the Green and Healthy Homes Initiative, the Minneapolis Foundation, and Philanthropy Northwest.

The EPA tried to defend its actions by claiming the terminations were contract disputes that needed to be heard in a special court. They also argued the grants were ended to prevent waste. However, Judge Abelson rejected both arguments, emphasizing that Congress specifically required the EPA to use the funds for environmental justice programs.

The ruling comes at a time when the EPA is already appealing a similar decision about its termination of $20 billion in Greenhouse Gas Reduction Fund grants. Meanwhile, Congressional Republicans have suggested cutting funding for both grant programs in their reconciliation bills, despite Trump’s previous denials of connection to Project 2025.

Ruth Ann Norton, CEO of the Green and Healthy Homes Initiative, welcomed the decision. Her organization had planned to fund 117 projects across multiple states, including work on lead contamination in West Virginia. Leaders from the other organizations that sued also praised the ruling, with Minneapolis Foundation CEO R.T. Rybak calling it “a win for local communities.”

The EPA has said it is reviewing the decision. The agency’s next steps remain unclear, but the ruling requires them to follow Congress’s original directive to use the funds for environmental justice activities in disadvantaged communities.