Trump’s Climate Funding Freeze Leaves Tribes and Community Groups in Limbo

When the Flandreau Santee Sioux Tribe landed a $19.9 million grant from the Environmental Protection Agency in early January, Robert Byrnes was elated. As a grant writer for the tribe, he and a few other employees had pulled 60-hour weeks during the holidays to ensure the agency had all the paperwork it needed to award the funds. The much-needed money would be put to use on the tribe’s reservation in South Dakota, repairing a historic bridge that had been razed a few years ago due to safety concerns, replacing asphalt roofs, and establishing resilience hubs to help tribal members during extreme weather. The grant was, as Byrnes put it, the “hugest” the tribe ever received for environmental work.

Once the agreement was inked on January 10, the tribe got access to the money through the Automated Standard Application for Payments, an online portal that grant recipients use to submit reimbursements and draw down their funds. In the weeks that followed, the tribe made a call for bids, hired contractors, and bought roofing materials, construction supplies, safety equipment, and freeze-dried food to stock the resilience hub.

Work proceeded quickly until the Trump administration issued a memo on January 27 directing federal agencies to freeze all funding. Suddenly, the tribe was shut out of its funding. Its $7 million grant to install solar panels through the EPA’s Solar for All program also is in limbo. Byrnes remains unsure about the future of a $300,000 grant for resilient infrastructure from the Department of Energy and $600,000 for food distribution from the Department of Agriculture.

“We’ve got a lot of hours invested,” said Byrnes. “It’s demoralizing especially after a signed contract. And you would think at that point, you got a contract with the federal government that should be pretty secure.” He said the tribe hasn’t been reimbursed for roughly half a million dollars.

Over the last two weeks, community groups, environmental organizations, and tribes that had been awarded billions in funding for climate and equity work have been scrambling to assess what the federal funding freeze means for them. One nonprofit with a $2.2 million Community Change grant from the EPA has accrued half a million dollars in unreimbursed expenses and has decided to stop hiring people. Others have pulled out of partnerships funded by the federal government, paused work with contractors, and are considering laying off or furloughing employees.

“It’s insane,” said the leader of one nonprofit. “The last three weeks have been lost work.” (Several grant recipients requested anonymity because they did not want to jeopardize federal funding, but a review of publicly available government spending data confirmed that they received grants.)

These groups have been unable to access their money despite at least two court orders requiring that the federal government release it. On January 31, a Rhode Island court issued a temporary restraining order against the Trump administration. Then, on Monday, the same court ruled that the government continued withholding funds in defiance of that order. It ordered the government to “immediately restore frozen funding” and “immediately end any federal funding pause.” (On Tuesday, a federal appeals court rejected the Justice Department’s request to lift the restraining order.)

But as of Tuesday, many of the nonprofits and others awaiting disbursements still don’t have access to them. Meanwhile, they continue incurring costs. Because grant payments are made through reimbursements, recipients are expected to front the money for any expenses, then submit receipts electronically for reimbursement. In some cases, this happens instantaneously. Since many of the grants cover payroll, labor costs, and supplies, those relying on them tend to submit this paperwork on a rolling basis. Some groups are seeking bridge loans and ways to cover the shortfall.

“There are all kinds of ways that folks are trying to mitigate harm, but they’re not going to be able to avoid harm,” said Hana Vizcarra, a senior attorney with the environmental law firm Earthjustice. “There’s harm to the communities they’re working in because if they’re unable to move forward with projects or have stalled those projects, that has an impact on the communities.”

On President Trump’s first day in office, he signed an executive order requiring federal agencies to pause all funding appropriated through the Inflation Reduction Act and the bipartisan infrastructure law, both of which Congress passed to infuse the economy with billions of dollars for climate and environmental projects. The government appeared to release at least some funding following last month’s court order.

On February 4, the EPA sent an internal memo notifying employees that it is unfreezing funds, including those from the Inflation Reduction Act and the bipartisan infrastructure law, to comply with that order. The letter noted that the agency’s Office of Budget would provide a “detailed list” of programs that will continue receiving funds. But a follow-up list reviewed by Grist included just one Inflation Reduction Act program for “consumer education.”

Then on Thursday, Chad McIntosh, the agency’s acting deputy administrator, instructed his staff to review all grant programs. Grist reviewed that directive which said that was needed to root out fraud and abuse.

“Congress has been clear on the need for oversight of funds provided to the agency for the implementation of the Inflation Reduction Act and other funding programs that may be improperly utilized,” the memo noted.

The following day, the agency’s budget office sent an internal email announcing a funding pause for more than two dozen air pollution, environmental justice, and clean vehicle programs.

“This list includes a number of climate and equity grants,” said Michelle Roos, executive director of the Environmental Protection Network, an environmental nonprofit that helps local groups navigate EPA’s grantmaking process. “And grantees are being told that EPA is releasing funding in tranches.”

In a statement, an EPA spokesperson told Grist the agency had begun disbursing funds tied to the Inflation Reduction Act and bipartisan infrastructure law. It has over the last week worked to ensure access was restored “by Friday afternoon,” according to an email. However, it also has identified several programs “as having potential inconsistencies with necessary financial and oversight procedural requirements or grant conditions of awards or programs.” The spokesperson also said the agency received “numerous concerning responses” to EPA administrator Lee Zeldin’s call for tips about theft of funds and misuse of grant money.

Some groups saw their funding restored on Friday only to lose it again. The Gonzaga Institute for Climate, Water, and the Environment, along with its partners, secured nearly $20 million from the EPA in early January in part to build climate resilience hubs in Spokane, Washington. When the institute lost access to that money last week, it grappled with what that might mean for its work. The group had already hired a program coordinator and debated whether it could continue to employ them. Brian Hennings, the organization’s director, felt relief when the freeze was lifted Friday. The hammer fell again on Tuesday, but Hennings said the institute remains committed to its work.

“We’re a Jesuit Catholic humanist university committed to social and environmental justice and see part of the reason for our existence as wanting to serve those who are most vulnerable to the impacts of a rapidly changing climate,” said Hennings. “We have a legal obligation under this contract, but we also have a moral responsibility to see this work through.”

This article originally appeared in Grist.

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