Federal Judge Orders $180 Million in Environmental Dollars Restored
Court vacates EPA’s termination of grants supporting environmental and public health projects in disadvantaged communities after finding action unlawful.
Communities seeking to protect their air and water, make homes healthy and safe, and address other environmental hazards won a major victory on Tuesday when a federal court ruled in favor of three organizations administering grants that the U.S. Environmental Protection Agency (EPA) terminated earlier this year.
A judge in U.S. District Court for the District of Maryland ruled that the EPA unlawfully terminated $180 million in congressionally authorized funding for environmental and public health projects supported by three organizations that the EPA had previously designated as regional grantmakers under its Thriving Communities Grantmaking Program.
In his decision issued on June 17, Judge Adam B. Abelson set aside the EPA’s termination of the grants, finding the agency’s action to have been arbitrary and capricious, as well as contrary to the provisions of the Clean Air Act in which Congress appropriated funds for the grants.
“Congress expressly required EPA to use appropriated funds for ‘environmental justice’ programs,” wrote Abelson, in his ruling. “By terminating Plaintiffs on the basis that current EPA leadership no longer want to support ‘environmental justice’ programs, EPA exceeded its authority under the Clean Air Act.”
“This ruling is a win for local communities that are working to reduce air pollution, protect their drinking water, and address other critical needs, and we look forward to the EPA’s prompt compliance with the court’s order.”
The ruling comes in a case brought against the EPA and its administrator, Lee Zeldin, by Green & Healthy Homes Initiative (Baltimore, MD), the Minneapolis Foundation, and Philanthropy Northwest (Seattle, WA).
In 2023, the three organizations were selected by the EPA to administer a total of $180 million, distributed evenly between their three regions supporting 15 states and 315 federally recognized tribes. They jointly filed suit in April 2025 after the EPA issued boilerplate memoranda terminating the grants—actions that violated statutory requirements for the grants, in addition to well-established general requirements that federal agencies engage in “reasoned decisionmaking”.
“The court’s decision affirms what we and our partners have known all along, communities most impacted by environmental harm deserve access to the resources committed to them by federal law,” said Jill Nishi, CEO of Philanthropy Northwest. “We’re grateful the court recognized this commitment, enabling us to support the sub-recipients of this funding to improve the environmental conditions and health of their communities with these resources. Philanthropy Northwest remains steadfast in our commitment to advancing community-led solutions across our region.”
The EPA’s Thriving Communities Grantmaking program was part of a broader Congressional mandate under the Inflation Reduction Act, which directed the agency to distribute $3 billion in climate and environmental justice block grants under the Clean Air Act.
The Thriving Communities Grantmaking program is designed to address environmental and public health challenges that local communities identify as priorities, from watershed cleanups to air-quality monitoring, stormwater infrastructure, remediating lead and asbestos poisoning, and reducing childhood asthma. A central goal of the program is to streamline and simplify the federal grants process, making it easier for local communities to access these resources.
“This is an important victory for the communities we all serve, and communities throughout the country that are committed to protecting public health by working to improve air and water quality, clean up toxic hazards, ensure access to food, and make homes safe, healthy, and resilient for millions of Americans,” said Ruth Ann Norton, President and CEO of the Green & Healthy Homes Initiative. “The projects funded by this program will be transformative and create tangible, long-lasting positive change for years to come.”
The strong response to the program underscores the great need for this funding. In the Great Lakes region, for example, the Minneapolis Foundation has received more than 650 grant applications. Examples include projects that would:
- Improve air quality through the creation of green spaces in Cincinnati, Ohio.
- Enhance emergency preparedness and disaster resilience through GIS mapping of community infrastructure in rural Illinois.
- Reduce water contaminants in the Great Lakes and connecting rivers through community cleanups, water quality monitoring, and educational workshops.
In the mid-Atlantic region, the Green & Healthy Homes Initiative received nearly 420 grant applications. Examples include projects that would:
- Identify and mitigate contaminated water sources in rural and post-industrial communities.
- Certify local residents in environmental remediation and energy efficiency services.
- Expand lead remediation and asthma trigger reduction in aging housing stock.
In the Pacific Northwest region, Philanthropy Northwest received 715 grant applications. Examples include projects that would:
- Reduce the risk of severe wildfires in Southwest Idaho through the removal of flammable vegetation and mitigation projects.
- Create a solid waste management program to protect human health and improve environmental conditions in rural Alaska.
- Prepare emergency response systems to provide information in commonly spoken regional languages.
—
About Green & Healthy Homes Initiative: The Green & Healthy Homes Initiative (GHHI) addresses the housing-based causes of lead poisoning, asthma, injury, and energy inefficiency by creating homes that are healthy, safe, and resilient. By delivering a standard of excellence through merit-based, data-driven solutions, GHHI aims to eradicate the negative health impacts of unhealthy housing for children, seniors, and families to ensure everyone has the opportunity to live, learn, work, and play in homes that support their health and well-being.
About Philanthropy Northwest: For nearly 50 years, Philanthropy Northwest has been a trusted partner and peer collective committed to transforming the philanthropic sector. We work side-by-side with funders, tribal nations, and community partners across Alaska, Idaho, Montana, Oregon, Washington, Wyoming, and beyond to catalyze lasting change toward equity and racial justice. Through advocacy, learning, and collaboration, we help move resources and power to community-led solutions that create meaningful, enduring impact.
About the Minneapolis Foundation: The Minneapolis Foundation drives collective action to realize strong, vibrant communities. The Foundation cultivates generosity by taking action on the greatest civic, social, and economic needs—partnering with nonprofits, facilitating grantmaking, driving research and advocacy, and providing services to donors seeking to make a difference in their communities.
Press Contact: Tom Weber, tweber@mplsfoundation.org, 612-672-3824
