A North Carolina nonprofit corporation sought money damages from the U.S. Environmental Protection Agency's (EPA's) alleged breach of a grant agreement for funds awarded pursuant to the Community Change Grants program that implemented the Inflation Reduction Act’s Environmental and Climate Justice Program. The complaint alleged that the grant agreement obligated $3,103,648 to the plaintiff in December 2024 and that EPA unilaterally terminated the agreement on May 2, 2025, “claiming that ‘the objectives of the award are no longer consistent with EPA funding priorities.’” The plaintiff asserted breach of contract and breach of the duty of good faith and fair dealing. 

Breach of contract action against the United States seeking money damages for unilateral termination of Environmental and Climate Justice Program grant agreement.

MDC, Inc. v. United States

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Environmental and Climate Justice Program Grantee Filed Breach of Contract Action Against U.S.

Filed

United States of America

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Actions or measures to adapt terrestrial systems to climate change.

Actions or measures to adapt freshwater systems to climate change.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

Hot temperature extremes are daily maximum temperatures  that were exceeded on average once in a decade or once in 50 years, and includes heatwaves.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

People who have left their homes, whether through force, voluntarily, or a mixture of both

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Climate change can have a range of impacts on technological system. Extreme weather events can cause infrastructure failures like power outages or damage to roads and bridges, as well as the impacts from waste following natural disasters. Human activities also cause technological impacts, such as the risks posed by oil spillage and leaks.

Environmental and Climate Justice Program Grantee Filed Breach of Contract Action Against U.S.

Risk

Impacted group

Just transition

Greenhouse gas

Economic sector

Adaptation/resilience

Finance