Inflation Reduction Act Funding Freeze

Earthjustice, on behalf of nonprofits and small farmers, sued the Trump administration for unlawfully withholding grant funds appropriated by Congress through the Inflation Reduction Act. The lawsuit seeks a court order requiring the administration to fulfill its financial commitments, release the funds, and prevent further irreparable harm.

The lawsuit argues the Trump administration and the U.S. Department of Agriculture is unlawfully withholding funds in violation of the Constitution and the Administrative Procedure Act. By refusing to disburse funds Congress allocated to specific grant programs and already promised to grant recipients, the administration violates the Constitution’s separation of powers. Its arbitrary and capricious actions taken without consideration for the harms they cause and without a reasoned explanation also violate the APA.

Earthjustice represents five farms in Maryland, Massachusetts, and Mississippi along with three nonprofit organizations who were awarded USDA grants funded by the Inflation Reduction Act.

Farmers were awarded Rural Energy for America Program grants to install solar panels on their farms and improve energy efficiency, measures that would greatly lower energy costs for the small businesses and enable them to pay higher wages to workers, invest in cover crops, and expand their businesses.

The outcome of this lawsuit will have implications for the Trump administration across agencies that administer IRA grant funds.