Section 60201 of the IRA amends the Clean Air Act by adding a new section 138 on “environmental and climate justice block grants.” Section 138 of the Clean Air Act appropriates $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. Eligible entities may use grant funds for climate resiliency, adaptation, and mitigation activities; reducing indoor toxics and air pollution; community-led pollution monitoring, prevention, and remediation; investments in technologies and infrastructure to improve resilience or reduce emissions; related workforce development; and improved engagement of disadvantaged communities in public processes. Grants may be awarded for periods of up to three years and must benefit disadvantaged communities.
Section 138 of the Clean Air Act also appropriates an additional $200 million to the EPA administrator provide technical assistance to entities receiving the grants described above.
The funds appropriated under section 138 will remain available until September 30, 2026.
Eligible Entities:
Environmental Justice Considerations:
Grants may only be awarded for activities that benefit disadvantaged communities.
Current Status:
Section 60016 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under this IRA provision.
Trump Administration Actions:
- EPA Pushes Climate Groups to Close Community Change Grant Program Grants [12/01/2025]
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- Senate Parliamentarian Advises Several Provisions in Republicans’ “One Big, Beautiful Bill” Are Not Permissible, Subject to Byrd Rule [06/19/2025]
- Senate Environment Committee Releases Budget Reconciliation Draft Text [06/16/2025]
- House Committee on Energy and Commerce Proposes IRA Rollbacks to EPA Programs [05/13/2025]
- Thriving Communities Technical Assistance Centers Websites Removed [04/24/2025]
- Litigation Compliance Report Indicates EPA Intends to Terminate 781 IRA and IIJA Awards [04/23/2025]
- EPA Records Reveal Axed Industry Grants [03/21/2025]
- EPA Orders Employees to Stop Billing Hours to Climate, Infrastructure Laws [01/31/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
Section 60201 of the IRA appropriates $3 billion to EPA – $2.8 billion to award grants for environmental and climate justice and $200 million to provide technical assistance to entities receiving the grants. The funds must be used by September 30, 2026.
EPA has awarded more than $2.3 billion. In October 2023, EPA announced $128 million through its Environmental Justice Collaborative Problem Solving Cooperative Agreement and Environmental Justice Government-to-Government grant programs. In December 2023, EPA awarded $600 million for 11 selected Grantmakers under EPA’s Environmental Justice Thriving Communities Grantmaking program. In November 2024, EPA announced the selection of nearly $1.6 billion in funding for 105 selected applications to help disadvantaged communities tackle environmental and climate justice challenges through projects that reduce pollution, increase community climate resilience, and build community capacity. EPA has also announced the availability of approximately $2.5 million in funding to UPLIFT Climate and Environmental Community Action Grant. The application will close February 5, 2025.
Biden Administration Actions:
- EPA Announces $2.5 Million Opportunity for Community Action Grants with February 25, 2025 Deadline [12/17/2024]
- EPA Announces Total of Nearly $1.6 Billion in Environmental and Climate Justice Community Change Grants [12/11/2024]
- EPA Announces $17 Million Grant to Reduce Indoor Air Pollution [09/11/2024]
- EPA Announces $1 Million Community Grant for the Bronx River Alliance [08/29/2024]
- EPA Announces $70 Million in Climate Grants for Dillard University and the City of New Orleans [08/27/2024]
- Regional Grantmaker Seeks Applications in EPA’s Environmental Justice Thriving Communities Grantmaking Program [08/15/2024]
- EPA Announces $19 Million in Environmental and Climate Justice Community Change Grants for Louisiana Organizations [08/08/2024]
- EPA Announces More Than $34 Million to Tackle Climate Justice in Alabama and Tennessee [07/29/2024]
- EPA Announces More Than $325 Million in Environmental and Climate Justice Community Change Grants [07/25/2024]
- EPA to Award $500,000 to South Bronx Organization to Combat Impacts of Climate Change [06/21/2024]
- EPA Announces Recipient of $50 Million to Fund Environmental Justice Projects in the Mid-Atlantic Region [12/20/2023]
- EPA Announces $2 Billion in Funding for Environmental and Climate Justice Community Change Grants [11/21/2023]
- EPA Announces $128 Million to Fund 186 Environmental Justice Projects [10/24/2023]
- EPA Amends Environmental Justice Thriving Communities Grantmaking Program [05/19/2023]
- White House Releases IRA Guidebook for Tribes [04/04/2023]
- EPA Region 8 Announces Webinar on Upcoming Grant Opportunities [03/07/2023]
- EPA Requests Comments on Climate Justice Program [02/09/2023]
Litigation:
In Green & Healthy Homes Initiative v. EPA (filed April 2, 2025), three non-profit organizations sued EPA to challenge EPA’s termination of grants awarded through the Thriving Communities Grantmaking Program. On June 17, the court granted the plaintiffs’ motion for summary judgment and set aside EPA’s terminations of their grants.
On July 16, 2025, the government filed an appeal of the summary judgment in the Fourth Circuit Court of Appeals. The federal government’s brief is due on February 13, 2026 and the plaintiffs’ brief is due on March 13.
In Thakur v. Trump (filed June 4, 2025), researchers at the University of California filed a class action complaint to challenge the federal government’s termination of grants and other funding awards. Some class members had been awarded grants through programs which were funded in part by the IRA. On June 23, the court granted the plaintiffs’ motion for a preliminary injunction.
On July 10, the federal defendants filed an appeal of the preliminary injunction in the 9th Circuit Court of Appeals. The federal government filed its brief on August 7 and the plaintiffs filed their brief on August 26. Oral argument was held on November 14. On December 23, the court issued an order granting in part and denying in part the government’s motion to stay the district court’s preliminary injunction pending appeal. On December 29, the plaintiffs filed a petition for rehearing en banc.
In Appalachian Voices v. EPA (filed June 25, 2025), a coalition of non-profits sued EPA on behalf of themselves and a class of similarly situated grantees to challenge the termination of the plaintiffs’ Environmental and Climate Justice Block Grants. On August 29, the court denied the plaintiffs’ motion for a preliminary injunction and to certify a class, and granted EPA’s motion to dismiss the case.
On September 16, 2025, the plaintiffs filed an appeal of the decisions in the D.C. Circuit Court of Appeals. The plaintiffs filed their brief on October 27. The government filed its brief on January 7, 2026.
In Lucky Shoals Community Association v. EPA (filed December 17, 2025), Lucky Shoals Community Association sued to challenge EPA’s termination of the Environmental and Climate Community Block Grant program and refusal to disburse funding under Lucky Shoal’s $19 million grant.