On December 17, 2025, the D.C. Circuit Court of Appeals granted petitions for rehearing en banc and vacated its September 2, 2025 decision holding that a federal district court abused its discretion when it granted nonprofit organizations’ motion for a preliminary injunction requiring the U.S. Environmental Protection Agency (EPA) and a bank that served as the U.S.’s financial agent to continue funding grants awarded to the organizations during the Biden administration under the Greenhouse Gas Reduction Fund established by the Inflation Reduction Act. The D.C. Circuit’s December 17 order provided that an April 16, 2025 partial administrative stay was in effect. The court set a schedule for new briefing to be completed on February 17, 2026 and for oral argument to be heard on February 24.

Lawsuits challenging EPA's freezing and purported termination of funding under the Inflation Reduction Act’s Greenhouse Gas Reduction Fund.

Climate United Fund v. Citibank, N.A.

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En Banc D.C. Circuit to Rehear Challenges to EPA Termination of Greenhouse Gas Reduction Fund Grants

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En Banc D.C. Circuit to Rehear Challenges to EPA Termination of Greenhouse Gas Reduction Fund Grants

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