President Donald Trump’s administration unlawfully terminated millions of dollars in grants to environmental justice communities, a federal judge ruled last week in response to a challenge from the Minneapolis Foundation and others.
More than $180 million in environmental funding must be restored to three regional organizations responsible for issuing grants to smaller groups, Maryland U.S. District Court Judge Adam Abelson ruled. The Environmental Protection Agency (EPA) violated federal law when it moved to cancel funding promised to the Thriving Communities Grantmaking Program, Abelson wrote.
The Thriving Communities Grantmaking Program is just a portion of the more than $1 billion in environmental justice funding that was frozen or terminated by the Trump administration this spring.
At least $42 million that were destined for groups in Minnesota were cut or paused. The money was earmarked for environmental justice areas — historically polluted, diverse and underserved urban, rural and Tribal communities. Much of that funding remains cut or frozen, as it is not tied to the Thriving Communities Grantmaking Program.
The legal challenge from three nonprofits — the Minneapolis Foundation, Maryland’s Green and Healthy Homes and Washington state’s Philanthropy Northwest — will restore some of those cuts. The Minneapolis Foundation was set to receive $60 million; $48 million will be distributed as grants throughout Minnesota and parts of the Great Lakes region outside the state, according to court documents.
Minneapolis Foundation CEO R.T. Rybak said it was gratifying to be chosen to administer the grants in the first place, and that it was rewarding to win a “long, unnecessary fight” to get the $60 million it was promised.
The Trump administration’s aversion to the term “environmental justice” led to the cuts, and the Minneapolis Foundation had to make a difficult decision whether to get in a political fight with the federal government. But Rybak’s glad they did.
“We’re using this money to help deliver healthy homes, clean water and clean air,” Rybak said. “All of it is also going to go to communities that need it the most because they have suffered the biggest impact.”
The Minneapolis Foundation serves as an administrator for smaller organizations, local governments and Tribal Nations that applied for grants from across the Great Lakes region. The organization received more than 650 applications, including 168 for projects in Minnesota. Before the EPA terminated the program on May 1, the Minneapolis Foundation had paid out about $625,000 to 10 projects, inducing three in Minnesota. The foundation has not announced those recipients.
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Workers who administer the grants were put into limbo by the termination, and the Minneapolis Foundation had to pay to keep personnel on staff while the legal case played out. They’re happy to start moving the money, and have 10 grants lined up to fund once the federal funds comes through.
“We had about 12-and-a-half minutes of celebration before getting back to work,” Rybak said.
The EPA is currently reviewing the decision, a spokesperson told Sahan Journal.
Fight over climate cuts continues
The EPA’s termination of the funding was arbitrary and capricious, Abelson wrote in his ruling. The agency was required to administer environmental justice block grants by Congress when the Inflation Reduction Act of 2022 became law.
“EPA contends that it has authority to thumb its nose at Congress and refuse to comply with its directives,” Abelson wrote.
Other Minnesota organizations that had been promised climate funding by Congress won’t benefit from Abelson’s ruling, because their funding was grouped under different programs that were not part of the legal case.
The Minneapolis American Indian Center was promised $4 million to make energy efficiency upgrades to its building as part of the Resilient Minneapolis project, which also includes the Sabathani Community Center. That money was under the Community Change Grants program, which is separate from the program that supported the Minneapolis Foundation, said Minneapolis American Indian Center Executive Director Mary LaGarde.
The Minneapolis American Indian Center moved ahead with energy efficiency improvements to its Franklin Avenue building, but has had to seek other funding sources for its solar panels. They’ve been fairly successful, raising $30 million of their $32.5 million goal.
“The termination of our grant means we are still actively raising funds for the All Roads Capital Campaign, which supported our historic renovation that provided needed building improvements and updates,” LaGarde said.
Many Trump administration cuts to climate funding that had been promised in the Inflation Reduction Act are being challenged in courts. A federal appeals court is currently deciding whether the EPA can cancel $20 billion in Greenhouse Gas Reduction Grants across the country.
