Overview
- The full D.C. Circuit reheard the dispute after a 2-1 panel ruling said district courts lacked jurisdiction and directed the case toward claims-court procedures.
- Judges questioned unsubstantiated allegations of fraud and mismanagement and pressed the administration on public claims likening the funds to “gold bars.”
- At issue is whether the nonprofits have an enforceable property or contractual interest in money the EPA awarded in August 2024 and placed in Citibank accounts.
- Congress’s One Big Beautiful Bill Act repealed the program’s statutory authority and rescinded unobligated balances, prompting debate over whether these grants remained obligated.
- The EPA argues it cannot restore the awards under the repeal, while the grantees seek to block interference with their contracts; the court has not yet issued a ruling.