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EPA grantees sue to reclaim funds as agency pushes rushed grant closures

Nonprofits caught between compliance and justice fight back. The EPA’s ultimatum: close grants now—or lose the chance to reclaim millions later.

In this image these two persons standing and holding a award in there hands, in the background...
In this image these two persons standing and holding a award in there hands, in the background there are flags and a curtain.

EPA grantees sue to reclaim funds as agency pushes rushed grant closures

Recipients of the Community Change Grant Program are taking legal action against the Environmental Protection Agency (EPA). The dispute centers on funds that grantees claim they are owed, while the EPA pushes them to finalize their grants quickly. Some organizations say they cannot access money needed for eligible expenses, leaving projects in limbo.

Emails sent to grantees, including 2C Mississippi, urged them to close out their grants shortly after the government shutdown ended on 12 November. Closing a grant requires submitting a final financial statement and program reports, which would then allow reimbursement for certain costs. But doing so would also mean forfeiting the right to challenge the termination in court or revive the program if other legal efforts succeed.

The EPA’s push to close out grants quickly has left grantees in a difficult position. If they comply, they risk losing the chance to reclaim funds or challenge the decision later. The court’s ruling on the injunction will decide whether the agency can continue withholding payments while the dispute remains unresolved.

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