In an April 29, 2025 order, the federal district court for the District of South Carolina concluded that it had subject matter jurisdiction over a lawsuit challenging the freezing of funds for 38 grants under the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA). The court found that the “essence” of the plaintiffs’ claims was not contractual in nature and that the claims therefore fell “plainly within the jurisdiction” of the district court under the Administrative Procedure Act, and not in the Court of Federal Claims under the Tucker Act. The court also rejected the federal defendants’ contentions that Congress intended to commit the IRA and IIJA funding to the agencies’ discretion and that there was therefore no subject matter jurisdiction under the Administrative Procedure Act. The court’s order also directed the defendants to supplement the record with six categories of documents to allow for “greater specification of the reasons for the proposed termination of certain grants and a better understanding of the present status of several other grants.”

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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South Carolina Federal Court Determined It Had Jurisdiction over Challenges to Trump Administration’s Freezing of Grant Funds

Filed

United States of America

South Carolina

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South Carolina Federal Court Determined It Had Jurisdiction over Challenges to Trump Administration’s Freezing of Grant Funds

Policy instrument

Fossil fuel

Economic sector

Finance