In a four-sentence order, the Fourth Circuit Court of Appeals granted the federal government’s emergency motion for a stay pending appeal of a July 22, 2026 district court order directing that Inflation Reduction Act’s Environmental and Climate Justice Block Grant Program (ECJ Program) funds be made available through September 30, 2026. In the emergency motion, the federal government argued that the plaintiffs were not likely to succeed in defending the injunction on appeal because ECJ Program funds were not available due to Congress’s rescission of the funds. The government also argued that the district court did not and could not require EPA to obligate ECJ Program funds. In addition, the government argued that the district court’s preliminary injunction would irreparably harm the government and the public interest by requiring the disbursement of more than $1 billion that might never be recovered and by placing “an extreme administrative burden on EPA.” The government contended that the plaintiffs’ interest in the preliminary injunction was “relatively minimal,” including because they could seek damages in the Court of Federal Claims. One judge would have denied the motion.

Community groups' and cities' lawsuit alleging that the Trump administration had unlawfully and arbitrarily frozen federal grant funds, including for programs and projects to reduce greenhouse gas emissions.

Sustainability Institute v. Trump

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Fourth Circuit Stayed District Court Order Requiring that Environmental and Climate Justice Block Grant Program Funds Be Made Available Through September 30, 2026

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Fourth Circuit Stayed District Court Order Requiring that Environmental and Climate Justice Block Grant Program Funds Be Made Available Through September 30, 2026

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