Donald Trump’s administration has run into a solid wall in its efforts to kill renewable energy development in the country. The full DC Circuit Court of Appeals has retained a preliminary injunction that prevented the federal Environmental Protection Agency from pulling around $20 billion in renewable energy grants.
This injunction also stops the EPA from reclaiming funds that had already been released to relevant recipients. President Trump has spent the entirety of his second term fighting local clean energy: he began his tenure by rescinding dozens of Biden-era sustainability-related policies, and has spent the past one and a half years systematically dismantling America’s fledgling green energy infrastructure.
However, the federal government’s efforts to rescind renewable energy grants funded via the Greenhouse Gas Reduction Fund (GGRF), a $27 billion federal program launched during the Biden administration, have ground to a halt.
The Biden administration established the program through the 2022 Inflation Reduction Act, and under the auspices of the EPA. However, the program came under attack right after Trump assumed office for his second term and signed an executive order halting disbursements made by the federal government under the landmark Inflation Reduction Act.
The Appeals Court’s ruling offers a minor reprieve for American green energy but doesn’t close the issue, as the EPA is set to file an appeal. In fact, the federal agency is already seeking an administrative stay to keep the ruling from taking effect until the legal proceedings are over.
A motion for an administrative stay was granted last Friday, freezing the disputed funds until 9th November, and the court will most likely extend this stay if the Supreme Court decides to evaluate the recent injunction. Losing the Biden-era funds will be a significant blow to an industry that’s essentially fighting the federal government for its survival.
In March 2025, just two months after President Trump assumed office, EPA Administrator Lee Zeldin rescinded the GGRF climate grants and tried to retrieve funds that had already been released to grant recipients.
According to Zeldin’s notice, the agency has significant concerns about the Biden-era program’s award process, integrity, waste and abuse, and problematic fraud. He also noted that the program did not align with the EPA’s priorities under President Donald Trump.
Although the Appeals Court’s decision won’t be final, it puts a considerable legal barrier in front of the Trump administration’s anti-green energy campaign. In the meantime, the green projects that were set to benefit from the grants will remain in limbo until the courts make a final ruling.
This hostile policy landscape leaves advanced energy entities like American Fusion Inc. (OTC: AMFN) with no doubts about how much they should lean on their innovations to reach the market rather than hoping that the federal government will provide support to their programs.
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