A federal judge in Rhode Island is requiring the Trump administration to release billions of dollars that have already been obligated to climate resilience and infrastructure projects around the nation.
The nationwide injunction, issued by U.S. District Judge Mary McElroy, will order the administration to honor existing commitments from two federal grant programs introduced under the Biden administration—the Infrastructure Investment and Jobs Act of 2021 (IIJA) and Inflation Reduction Act (IRA) enacted in 2022.
In January, the Trump administration issued an executive order to freeze federal funding for infrastructure and climate projects, grants and awards that did not align with the executive office’s new energy policies. Titled “Unleashing American Energy,” the order established a 90-day review period to assess federal agencies’ processes, policies and programs related to grant, loan, contract and financial disbursements.
The executive order sparked a response from conservation and nonprofit organizations that were set to receive IIJA and IRA grant funding.
These organizations, which include the National Council of Nonprofits (NCN) and the Green Infrastructure Center, filed suit against the U.S. Department of Agriculture, Department of Energy and Department of the Interior for violating federal processes under the Administrative Procedure Act.
In support of the plaintiffs, Judge McElroy’s injunction states “the sudden, indefinite freeze of all already-awarded IIJA and IRA money was arbitrary and capricious; it was neither reasonable nor reasonably explained, and it also failed to account for any reliance interests.”
The injunction also supports the plaintiff’s allegations that the powers asserted by federal agencies were not founded in existing federal law. Weighing the balance of equities and public interest, Judge McElroy’s decision holds that the nonprofits have demonstrated irreparable harm and will institute a nationwide injunction to release existing funding while the case is pending.
Already, several existing federal grant programs have been terminated, hindered or suspended at the request of the Trump administration, including the $5 billion National Electric Vehicle Infrastructure Program and the $2.5 billion Charging and Fueling Infrastructure Discretionary Grant Program. Both programs supported infrastructure projects that reduce reliance on traditional fuel-powered vehicles and promote environmental sustainability in transportation systems.
Judge McElroy was successfully appointed by President Trump during his first term in late 2019. The U.S. Senate approved Judge McElroy’s nomination for the U.S. District Court for the District of Rhode Island with no opposition, holding jurisdiction over nearly all categories of federal cases, including civil and criminal.
This is a developing story—Government Market News will provide updates as additional information becomes available.
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