As reported on December 1, 2025, recipients of EPA’s Community Change Grant Program awards have received emails from EPA asking them to formally “close out” their awards “expeditiously” by submitting a final accounting of program expenses. The EPA indicated that groups that close out awards could be reimbursed for costs that were incurred before EPA purported to canceled their awards, and for the cost of some closeout activities after that, as long as EPA agrees to it. However, closing out would also forfeit recipients’ rights to legally challenge the termination of the grants in court or reopen their programs if litigation challenging EPA’s actions was successful.
IRA section 60201 allocates $2.8 billion to the EPA Administrator to award grants to community-based nonprofit organizations as well as partnerships between those organizations and Indian tribes, local governments, and institutions of higher education for various environmental justice related projects in disadvantaged communities. The Community Change Grant Program was allocated $1.96 billion to fund projects that utilize extensive community engagement for local climate action. EPA had previously frozen all grants in March, terminated the program, and rescinded all unobligated funds after the passage of the OBBBA. Multiple groups that have had their funds frozen or rescinded after they have been obligated have filed lawsuits against the EPA.