Aspiring Applicants Worry EPA Environmental Justice Grant Funding Will Be Rescinded Before It’s Awarded

When a rare tornado swept through the north side of Minneapolis, Michelle Neal scrambled for cover at a fast-food restaurant. “It was unreal—we could have died,” she told Minnesota Public Radio. “McDonald’s saved me.”

It’s the kind of scenario that Julia Nerbonne, executive director of Minnesota Interfaith Power and Light, wants to make sure communities are better prepared for as climate change increases the frequency and severity of extreme weather. The faith-based nonprofit hopes to transform churches and other congregations into emergency shelters with solar power and battery storage to withstand power outages—especially in historically disadvantaged communities, like north Minneapolis, which have long been overburdened by pollution and underinvestment.

“We want to have a building,” she said, “in which they can have a cooling place, in which they can refrigerate their medication—a place where they can be with the community in the midst of a crisis.”

Around the country, nonprofits and other community organizations like Minnesota Interfaith Power and Light were hoping these sorts of projects would receive funding from the U.S. Environmental Protection Agency, which has $3 billion to spend on environmental justice community grants through Sept. 30, 2026. But the Biden administration has only been able to award about half the money so far, and experts say the unspent 50 percent can most likely be clawed back by President-elect Donald Trump—a blow to communities of color and poor rural communities that had long waited for help like this.

Among the threatened initiatives is the EPA’s Environmental Justice Thriving Communities Grantmaking Program, which dedicated $600 million in block grants for projects aimed at tackling climate and environmental justice issues in disadvantaged communities. The money has been hailed by advocates as one of the most important federal investments ever made in closing the nation’s long-standing socioeconomic and racial gaps.

The Biden administration has so far awarded nearly $266 million, according to an EPA database, leaving more than half—or just over $334 million—vulnerable to reversal efforts from Trump officials or Republican lawmakers. “EPA continues to work through its rigorous process to obligate the funds under the Inflation Reduction Act, including the Thriving Communities Grantmakers program,” said Nick Conger, the EPA’s communications director.

Last week, the EPA opened up the first round of applications for the Thriving Communities program, giving hopeful applicants like Nerbonne less than two months to navigate the complicated federal grantmaking process before Trump is sworn in. In fact, several EPA regions have yet to open their application processes, leaving some groups worried they won’t be able to complete their applications on time.

“It just seems like an incredibly missed opportunity. I’d feel disappointed about that,” Nerbonne said, when asked how she would feel if the program’s funding was rescinded under Trump. “Congregations aren’t talking about politics. They’re ready to get to work serving their community and they’re tired of politics, especially after this election.”

Republicans Target Environmental Justice Funding

The IRA’s idea for addressing historic environmental injustice through a community grant program was taken from the sprawling Environmental Justice for All legislation originally introduced in 2020 by Rep. Raúl Grijalva (D-Ariz) and the late Rep. A. Donald McEachin (D-Va.).

“We approached it with the fundamental belief that communities know what communities need best,” said Grijalva in an email.

But Congressional Republicans have been vocal about their intention to cut or limit the environmental justice grant program, characterizing it as a form of cronyism, providing support to political allies of Democrats and opponents of fossil fuels.

“The EPA is awarding taxpayer dollars to special interest groups committed to a radical energy agenda,” wrote U.S. Rep. Cathy McMorris Rodgers (R-Wash.) in a House Energy and Commerce Committee report, released just before Election Day. “Enriching nonprofit organizations to spread radical, left-leaning ideology is an inappropriate use of taxpayer dollars. These programs demand rigorous scrutiny and meticulous oversight.”

Trump himself suggested in a 2023 campaign video that he could “simply choke off the money” allocated under the Inflation Reduction Act.

Typically, Congress would have to pass new “rescission” legislation to take away unspent money that Congress previously appropriated. Republicans could use the appropriations bill for Fiscal Year 2025, which began in October and now appears likely to be in the hands of the newly elected Congress and Trump, to do so. But in order to avoid the threat of a filibuster in the Senate, they instead could use a budget reconciliation bill that only needs a simple majority—the approach Democrats used to pass the IRA. Republicans are aiming to embark on a reconciliation bill soon after taking office in order to extend and expand Trump’s 2017 tax cuts.

Ending environmental justice grantmaking is also part of the vision laid out in Project 2025, the policy roadmap that conservative groups drew up for Trump’s second term. Although Trump professed no familiarity with Project 2025 during the campaign, he has named authors of the plan to key positions in his new administration, including tapping Russell Vought, his former budget chief, to head the Office of Management and Budget again. Project 2025 called for pausing and reviewing all environmental justice grants in light of the Supreme Court’s recent decisions against affirmative action. 

The Thriving Communities grant program has become a particular target of Republicans, who singled out one of its recipients and accused it of being “radical” and “anti-American.” The Climate Justice Alliance, a California-based organization, is one of 11 regional grantmaker organizations that were initially awarded $50 million each from the Thriving Communities program. Those groups would then disseminate $40 million of their funds as subgrants to community organizations in their regions.

The Climate Justice Alliance is the only regional grantmaker that has not received any of its funding, sparking speculation that GOP rancor could be to blame. In May, Sen. Shelley Moore Capito (R-W.Va.), the highest ranking Republican on the Senate Environment and Public Works Committee, criticized the group for its support of Palestinians in Gaza and its opposition to Israel, calling its members “radical,” “anti-American,” and “antisemitic.”

Conger, the EPA spokesperson, said the “EPA continues to review the grant for the Climate Justice Alliance,” but provided no further details.

KD Chavez, the Climate Justice Alliance’s executive director, said that the group’s pro-Gaza advocacy is constitutionally protected speech that is separate from the work it would fund under the Thriving Communities program. “This grant money would only be used as intended by Congress, going towards things like air quality and asthma, water quality and lead, asbestos contamination,” she said.

If the group’s political views are the reason for the holdup in funding, Chavez said it could put at risk any social justice or progressive work that receives federal funding. “This could really be setting up a horrific First Amendment precedent moving forward for any type of organization across civil society,” Chavez said.

Other groups involved in the EPA grant program pushed back against the GOP attacks as well. In addition to the 11 regional grantmaker organizations, another 18 institutions were chosen to act as technical assistance centers—known officially as Thriving Communities Technical Assistance Centers, or TCTACs—to help community organizations navigate the often complicated federal grant application process. 

Bonnie Keeler, a University of Minnesota public affairs associate professor who runs the Midwest region’s TCTAC, said it’s a misrepresentation of her center’s work to say it channels federal funding to “left-leaning activist or extremist organizations,” adding that the program deserves broad bipartisan support.

“The TCTACs do not advance a particular policy agenda, we respond to requests for assistance wherever they come from,” Keeler said. “To date, we have responded to over 400 requests for technical assistance from urban, rural and tribal communities seeking assistance with everything from energy efficiency goals, to cleaning up brownfields, to managing hazardous waste, to reducing indoor air pollution.”

How Far Will Trump Go?

In the early 1970s, then-President Richard Nixon had a problem. A Democratic-controlled Congress wanted to fund highway improvements, drug rehabilitation and a number of other initiatives that the Republican president believed were “undisciplined” and “fiscally irresponsible.”

So Nixon decided to withhold funds in the budget that he didn’t agree with, sparking a constitutional struggle that resulted in the passage of the Congressional Budget and Impoundment Control Act. That law, which is still in effect today, prohibits a president or other government officials from refusing to release congressionally appropriated funds and essentially substituting their own funding decisions for those of Congress.

The legislation also defines when federal funding has been “obligated,” a legal term for when a contract has been signed between a federal agency and the recipient of federal funds, such as an organization applying for a grant, said Jeremy Kalin, a finance attorney for the law firm Avisen Legal. That means the $266 million dedicated to environmental justice under the Inflation Reduction Act, which Congress passed in 2022, and already obligated is protected from being rescinded, Kalin said. 

But legal experts, including Kalin, aren’t sure if Trump and his officials will respect that federal law and refrain from trying to seize or rescind obligated funds, pointing to statements made by Trump and Vought.

Vought and members of right-wing think tanks he is associated with have argued that the Congressional Budget and Impoundment Control Act of 1974 is unconstitutional, saying that Article II of the Constitution, which obligates the president to “faithfully execute” the law, also allows a president to forbid enforcement of the law.

Trump appears to agree with that interpretation. In a statement announcing Vought’s nomination last week, Trump bragged about Vought’s experience as a deregulator, saying, “Russ knows exactly how to dismantle the Deep State and end Weaponized Government.”

“Russell Vought,” Kalin said, “may stretch the bounds of the Impoundment Control Act … and just force people to stop it through the courts.”

If that’s the case, Kalin said, some funds—even those protected as “obligated” funds under the Impoundment Control Act—may be subject to reversals by the Trump administration, and only funds that get fully dispersed to organizations before Trump takes office may be safe from those efforts.

Trump has already tested this theory. During his first term in office, he withheld nearly $400 million in military aid to Ukraine while pressuring President Volodymyr Zelenskyy to open a corruption investigation into Joe Biden and his family. The U.S. Government Accountability Office, or GAO, later ruled that Trump’s actions violated the Impoundment Control Act.

Trump will have an opportunity to appoint a new head of GAO next year when the 15-year term of the current Comptroller General ends, giving him a chance to choose who will have direct oversight of any decisions he makes to withhold funding. 

If Trump decides to withhold funds, it will most certainly trigger legal fights that could go all the way to the Supreme Court. The high court has never directly weighed in on the subject, however, but the court’s conservative majority has indicated it is willing to take an expansive view on presidential power.  

“Time Is Just Not on the Side of the Grantees”

The short amount of time, roughly seven weeks, before Trump takes office, could also be discouraging some community groups from applying for federal environmental justice grants at all. In some cases, nonprofits see it as a reason to rely less on federal support to do their work.

Caleb Roberts applied for a $1.5 million grant earlier in November from another IRA-funded environmental justice program. He hoped to use the money to hire more employees at his nonprofit, Dallas-based Downwinders at Risk, to conduct door-to-door screenings to check residents’ homes for conditions that cause asthma. But now he’s unsure he’ll ever see that money.

“We think we’ll definitely run into some funding issues,” he said. “Starting day one after inauguration, those things are probably under fire.”

Another nonprofit, Alabama-based We Matter Community Association, said it plans to apply for a Thriving Communities grant to purchase 1,200 acres of land in the city of Prichard, on which it plans to build community amenities, including a community center, athletic fields, commercial space and affordable housing. But Carletta Davis, the group’s president, said the organization will likely rely less on federal support in the future.

“[The election] is the reason why We Matter is really solely focused on trying to create a way to sustain itself without having to go through governmental grants,” she said. “I think that our model is probably going to be the model going forward for EJ organizations.”

Some organizations aren’t sure if applying for a federal environmental justice grant is worth the effort at all. Applications for the Thriving Communities grant program, the largest single program of federal environmental justice block grants, haven’t even opened in the EPA-designated area that includes Texas and Louisiana, home to the nation’s largest petrochemical complexes and environmental justice communities.

“At this time, the groups we know of that may be interested still need more time to understand the grant program and whether they will apply,” said Vanessa Toro Barragán, a senior program officer at the Houston-based Hive Fund for Climate and Gender Justice, which isn’t involved with the grant program.

But time may not be a luxury community groups can afford at the moment, should Trump officials and Republican lawmakers follow through with their threats.

Employees of organizations that work closely with the Thriving Communities program, also expressed concern that community groups would struggle to complete a complicated federal grant application before Trump takes office in just seven weeks, agreeing to comment anonymously to safeguard their prospects as potential grantees. 

“Time is just not on the side of the grantees,” one employee told Inside Climate News.

Still, organizations involved with the federal grant programs are encouraging community groups to apply and hope to see a big turnout. 

“The fact is that this program, it still exists, and it doesn’t make sense to turn away from an opportunity that is still there while it is still there,” said Chandra Taylor-Sawyer, senior attorney at the Southern Environmental Law Center, one of the partner organizations helping to recruit applicants to the Thriving Communities program.

Keeler, who runs the Midwest technical assistance center at the University of Minnesota, expressed a similar sentiment. “The future of these programs is uncertain,” she said. “That said, all we can do is continue the work we’ve started. We get new requests for support every week and we’ll keep responding to those requests for technical assistance as long as we are able.”