Federal Appeals Court Rules on EPA Funding

A federal appeals court recently ruled 2-1, allowing EPA administrator Lee Zeldin the authority to withhold $16 billion in funds, referred to as “gold bars,” that were allocated by the Biden administration prior to his departure.

This ruling from the U.S. Court of Appeals for the D.C. Circuit overturns a previous lower court’s decision and marks a significant victory for the Trump administration, particularly in efforts aimed at redirecting federal funds typically associated with eco-focused leftist groups.

Back in February, according to reports, Zeldin announced he had frozen nearly $2 billion that had been allocated through the Biden administration during his last days in office.

In a video shared on social media, Zeldin criticized the Biden administration, likening their approach to “throwing out the gold stick from Titanic,” referring to financial losses in a climate project he described as a “rushed job with insufficient oversight.”

“We’ve moved past the days of funneling taxpayer money into far-left organizations under the guise of environmental justice and climate equity,” Zeldin stated. “The American people deserve government transparency and accountability, which has been lacking over the past four years.”

The funds in question were intended for a project called the “Green Bank,” which Zeldin alleged was really meant to create a financial reserve for left-wing initiatives aimed against the forthcoming Trump administration policies.

As reported:

The lower court previously ruled that the EPA could not uphold the claims made by Zeldin, asserting it was incorrect to seek termination of its contract with a nonprofit without providing concrete evidence. However, the federal appeals court ruled in favor of the EPA, stating that the agency should have the right to end grants, and that disputes from climate groups aren’t properly heard in federal district court.

Instead, the contract issues ought to be addressed in a federal claims court, according to a decision penned by Judge Neomi Rao, a Trump appointee. This represents a significant setback for the group that sought a ruling for immediate access to the approximately $16 billion in funds.

It’s uncertain if this case will be taken to the U.S. Supreme Court or re-filed in Federal Claims Court. Historically, Democrats have found some success in lawsuits against Trump at the district level, only for those rulings to be overturned by the Supreme Court.