NATIONAL NEWS

Divided federal appeals court says Trump administration was wrong to terminate climate program

Aug 4, 2026, 10:50 AM

FILE - President Donald Trump, left, speaks during an event with Environmental Protection Agency di...

FILE - President Donald Trump, left, speaks during an event with Environmental Protection Agency director Lee Zeldin in the Roosevelt Room of the White House, Feb. 12, 2026, in Washington. (AP Photo/Evan Vucci, File)
Credit: AP Photo/Evan Vucci

(AP Photo/Evan Vucci, File)

WASHINGTON (AP) — A divided federal appeals court on Tuesday said the Trump administration improperly terminated a multi-billion program to boost clean energy projects, handing a win to a coalition of nonprofits picked to run the Biden-era effort.

Climate United Fund and other nonprofits won’t have access to their funds immediately as the decision will be put on hold for several days giving the Environmental Protection Agency time to ask the Supreme Court to step in.

The split ruling by the full U.S. Court of Appeals for the District of Columbia is a loss for the Trump administration in one of its earliest efforts to dismantle President Joe Biden’s campaign to reduce climate-warming greenhouse gases. The Greenhouse Gas Reduction Fund, commonly referred to as a “green bank,” is a congressionally authorized program that provided money to nonprofits that would then make loans and invest in small energy projects, energy-efficient buildings and transportation.

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The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment

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Divided federal appeals court says Trump administration was wrong to terminate climate program