EPA ends spending freeze on certain environmental funds

The Office of Budget at the EPA will provide a comprehensive list of programs that are set to receive disbursements.

EPA ends spending freeze on certain environmental funds
The Environmental Protection Agency (EPA) directed officials on Tuesday to enable the disbursement of funds from certain programs under the bipartisan infrastructure law and the Inflation Reduction Act, which had been on hold since January 20, according to an internal memo obtained by PMG.

This decision follows a federal judge's ruling on Monday that prohibited agencies from enforcing any remaining components of the spending freeze implemented by the Trump administration.

“Consistent with the Order, the agency’s financial system will now enable the obligation of financial assistance,” wrote EPA’s acting chief financial officer, Gregg Treml. “This includes programs within the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, including federal financial assistance in the State and Tribal Assistance Grants, Brownfields, and Superfund.”

The memo indicates that EPA’s Office of Budget will provide a comprehensive list of the programs eligible for disbursement.

A climate policy worker reported that the majority of the unfrozen funding is aimed at initiatives within the bipartisan infrastructure law, based on reviewed documents. This includes funding for restoring estuaries, state revolving funds for improving drinking water, brownfield remediation, and addressing contaminants such as PFAS “forever chemicals.” Additionally, this list includes one program under the Inflation Reduction Act focused on consumer education.

The spending freeze will remain for a wide array of funding under the Inflation Reduction Act, which is the Biden administration’s substantial investment strategy to combat climate change, noted Sam Ricketts, co-founder of S2 Strategies, an organization that collaborates with state governments on climate policies. As of Tuesday evening, Ricketts stated that one state he advises still cannot access funds from EPA’s $7 billion Solar for All initiative and its $5 billion climate pollution reduction grant programs.

“They are flagrantly disregarding the law. It is outrageous,” Ricketts expressed.

The EPA did not respond immediately to requests for comment.

Last week, federal judges in Washington and Rhode Island prevented the White House from enforcing a widespread spending pause issued by the Office of Management and Budget, a move that had caused significant disarray before it was revoked two days later.

However, funding for energy and climate initiatives appeared to remain on hold due to President Donald Trump’s executive order from his first day in office, which suspended the disbursement of so-called “green new deal” funds under both the Inflation Reduction Act and the infrastructure law. Nonprofits and state agencies informed the courts that they still couldn't access awards funded under these laws.

In response, U.S. District Judge Loren AliKhan issued a temporary restraining order on Monday, preventing the administration from enforcing any remnants of the spending pause.

In the EPA memo, Treml seems to recognize this ruling, stating that the “Court directs that federal financial assistance shall not be paused based on the Office of Management and Budget’s direction in the rescinded OMB memorandum or the President’s Executive Orders, while ongoing litigation proceeds or until otherwise directed by a Court.”

Alex Guillén, Josh Siegel, and Kelsey Tamborrino contributed to this report.

Debra A Smith for TROIB News