A recent report from the U.S. Environmental Protection Agency’s Office of the Inspector General revealed that the EPA followed a careful and correct process when awarding about $1.5 billion in environmental grants aimed at disadvantaged communities. These grants had been canceled by the Trump administration.
Among the 80 projects affected were various energy initiatives, including energy-efficient housing improvements, solar energy, microgrids, and community workforce programs.
The Community Change Grant Program was funded with $2 billion from the Inflation Reduction Act of 2022. Last May, the EPA announced it was terminating the grants, and in July, the One Big Beautiful Bill Act undid the program’s remaining funds.
Supporters argue that the report indicates officials acted unlawfully in halting the funds.
“The Inspector General confirmed there was no ‘fraud’ or ‘waste’ – the real waste is in time and lives,” stated Jillian Blanchard, the senior vice president of climate change and environmental justice at Lawyers for Good Government.
She added, “The EPA cannot claim to prioritize efficiency and accountability when it unlawfully canceled grants that would provide clean water and air to the communities it is supposed to protect.”
In its defense, the EPA emphasized its commitment to managing taxpayer money wisely. While it addressed the previous administration’s approach to environmental justice, it did not dispute the report’s findings.
The Office of the Inspector General operates independently from the EPA.
One organization impacted by the cancellation was the Lucky Shoals Community Association in Gwinnett County, Georgia. They had received nearly $20 million for a community resilience hub and a lead pipe replacement project.
Georgia State Rep. Marvin Lim expressed disappointment over the abrupt cancellation in an article last year. He described the resilience hub as a project that would create local jobs, repair neglected buildings, preserve green spaces, and improve air quality.
“How would you feel if you had a contract for honest work but were suddenly terminated without any allegations of poor performance?” he questioned. “We have other sources of funding, but to lose what was a significant win for our community after so much effort is disheartening.”
Legal organizations are still advocating for various grant recipients affected by the Trump administration’s overall crackdown on programs focused on environmental justice and climate change. In August, a federal judge ruled that disputes over federal contracts must go through the U.S. Court of Federal Claims, hindering efforts to restore the terminated grants.
Lawyers for Good Government noted that its Court of Federal Claims Clinic has linked over 50 affected organizations with legal help.