A federal appeals court on Tuesday vacated a lower court order requiring the Environmental Protection Agency and Citibank to continue funding $16 billion in climate-related grants, ruling that the grantees are unlikely to prevail in their lawsuit.
Judge Neomi Rao, writing for the panel, said the district court “abused its discretion” in issuing a preliminary injunction after five nonprofits sued the agency over its March 2025 decision to terminate the awards.
The court found that the groups’ claims were primarily contractual and must be pursued in the Court of Federal Claims, while their constitutional claim was without merit.
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