Judge orders federal agencies to release billions of dollars from two
Biden-era initiatives
[April 16, 2025]
By MICHAEL CASEY
BOSTON (AP) — A federal judge on Tuesday ordered the Trump
administration to release billions of dollars meant to finance climate
and infrastructure projects across the country.
U.S. District Judge Mary McElroy, who was appointed by President Donald
Trump during his first term, sided with conservation and nonprofit
groups and issued a preliminary injunction until she rules on the merits
of the lawsuit. The injunction is nationwide.
McElroy concluded that the seven nonprofits demonstrated that the freeze
was “arbitrary and capricious” and that the powers asserted by the
federal agencies, including the White House’s Office of Management and
Budget, in halting the payouts were not found in federal law.
“Agencies do not have unlimited authority to further a President’s
agenda, nor do they have unfettered power to hamstring in perpetuity two
statutes passed by Congress during the previous administration,” she
wrote.
Diane Yentel, the president and CEO of the National Council of
Nonprofits and a plaintiff in the lawsuit, welcomed the decision. It is
the second legal victory for the organization, after a judge in February
prevented the administration from issuing a broad freeze on all federal
grants and contracts.
The nonprofits said that an executive order issued by Trump resulted in
projects funded by these two laws being put on hold. As a result,
funding from many federal agencies has been frozen for everything from
urban forestry projects to weatherization programs to lead pipe
remediation and has resulted in “serious and irreversible harm” to many
groups.
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“This funding freeze has already caused serious harm in communities,
as nonprofits that provide critical services to our country’s most
vulnerable have been forced to scale back operations, cancel
projects, and consider laying off staff,” Yentel said. “This
injunction offers much-needed relief and a path forward."
Plaintiffs argued the freeze violated the Administration Procedure
Act and contradicts a directive from the budget office that said the
pause in funding in the executive order didn't apply to all the
funding. They also said there is no statutory provision that allows
the federal agencies to freeze the funding.
Lawyers for the federal government responded that Congress gave
agencies broad latitude to select recipients for the funding and
that the plaintiffs failed to show that three of the seven agencies
they sued have caused them any harm. They also argued that
plaintiffs couldn’t seek relief through this lawsuit since they are
already pursuing a similar challenge in a different court.
The 2021 Infrastructure Investment and Jobs Act provided $550
billion in new infrastructure investments, but is set to expire in
2026. Another $30 billion came from the 2022 Inflation Reduction
Act, including for projects focused on clean energy and climate
change.
Administration officials have said the decision to halt loans and
grants funded by these two laws and others was necessary to ensure
that spending complies with Trump’s recent blitz of executive
orders. The Republican president wants to increase fossil fuel
production, remove protections for transgender people and end
diversity, equity and inclusion efforts.
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