Illustration: Natalie Peeples/Axios
EPA is beginning an internal review of IRA and IIJA grant programs, as President Trump's spending freeze continues to roil agencies' climate initiatives.
Why it matters: EPA and other agencies appear to have unfrozen some funds in response to a court order, but there's still uncertainty about what will happen to a massive tranche of climate money.
State of play: EPA late last week began a review of grant programs in search of awards that are "unlawful," "fraudulent" or contrary to the agency's policy priorities, according to an internal memo from acting deputy administrator Chad McIntosh viewed by Axios.
- The memo also makes clear that grant awards already awarded that had been paused "shall continue to be immediately disbursed."
- It appeared Friday that at least some grantees under IRA programs were getting their disbursements unfrozen, according to two sources outside the agency involved with those programs who spoke on condition of anonymity.
- But agency leadership followed with another note Friday pausing "new obligations or disbursements" pending review on a long list of IRA and IIJA programs, including the Clean School Bus Program and money from the Greenhouse Gas Reduction Fund.
- EPA didn't respond to requests for comment.
Meanwhile, the Department of Transportation on Thursday issued a memo revoking all implementing guidance for the National Electric Vehicle Infrastructure (NEVI) program pending a review.
- The agency said "reimbursement of existing obligations will be allowed," but it suspended approval of state plans.
- A DOT spokesperson said the agency is using "the unique authority afforded under the NEVI Formula Program to ensure the program operates efficiently and effectively and aligns with current U.S. DOT policies and priorities."
What we're watching: Confusion reigns right now, but we could see further legal action, with blue states alleging that the Trump administration is not complying with court orders.
