D.C. Circuit says Trump administration improperly terminated multibillion-dollar climate fund

A divided federal appeals court ruled Tuesday, August 4, 2026, that the Trump administration acted improperly when it terminated a Biden-era program intended to finance clean-energy projects.

The decision by the U.S. Court of Appeals for the District of Columbia Circuit is an early appellate loss for the administration’s effort to dismantle climate initiatives created under President Joe Biden. The program involves billions of dollars in federal climate financing.

Nonprofit groups selected to administer the program challenged the administration’s termination. The court’s ruling limits the administration’s attempt to unwind the program and may require continued handling of funds selected under the prior administration.

For the organizations selected to administer the fund, the ruling may mean that work connected to the awards cannot simply be ended through the administration’s termination decision. For clean-energy projects intended to receive support, the decision could preserve a path for the program to continue, subject to the court’s precise judgment and any further proceedings.