U.S. EPA Scraps Over 400 Grants Totaling $1.7 Billion in Fourth Round of Cancellations

The U.S. Environmental Protection Agency on March 10 announced that it has cancelled over 400 grants, worth a combined $1.7 billion in its fourth and largest round of grant cancellations for programs considered unnecessary. In February, the agency stated that it had partnered with the Department of Government Efficiency to review and scrap funding awarded to diversity and climate initiatives by the Biden administration. The latest round of cancellations now brings the total value of canceled financing to more than $2 billion.

The announcement is part of a broader initiative to eliminate funding for Biden-era initiatives associated with diversity, equity, inclusion, or DEI, and environmental justice. By scrapping funding, the agency is working towards achieving the objectives set out in President Trump’s executive orders, including the “Ending Radical and Wasteful Government DEI Programs and Preferencing.” EPA is collaborating with other agencies to establish accountability and oversight regarding around $20 billion in grant funding approved for climate projects under the 2022 Inflation Reduction Act.

Multiple environmental organizations, which were due to receive EPA funding, have criticized the agency and called the actions unlawful. Last week, Climate United filed a lawsuit against the agency and Citibank for what the organization claimed was illegal withholding of obligated funds. In 2024 under the Biden administration, the EPA selected Climate United for the National Clean Investment Fund program and signed a legally binding contract with the organization to deliver jobs, energy savings and economic growth for communities. The signed agreement required the agency to obligate the funds to Climate United by Sep. 30, 2024.