Trump administration refreezes some environmental grant money to Mass. despite judge's order

The on-again-off-again funding freeze saga continues in Massachusetts.

One day after a federal judge reiterated his order that the Trump administration immediately restore frozen funds across the country, two state environmental agencies say they no longer have access to millions of dollars awarded to them by the U.S. Environmental Protection Agency during the Biden administration.

According to state officials, the Department of Energy Resources cannot access its $156 million grant for the Solar For All program, an initiative to slash energy costs for low-income residents by installing solar panels on tens of thousands of homes. Similarly, the Department of Environmental Protection cannot access almost $1.2 million of grant money for two air monitoring programs.

Together, the frozen funds represents more than half of the $230 million the judge ordered the Trump administration to restore to Massachusetts Monday.

The back-and-forth nature of the freeze has caused confusion among state officials, local nonprofits and others expecting to receive contractually obligated federal grant money.

It began when President Trump issued an executive order, “Unleashing American Energy,” on his first day in office. This order directed federal agencies to cut off hundreds of billions of dollars promised to states, businesses and nonprofits that were planning a wide array of environmental and infrastructure projects.

A memo from the Office of Management and Budget followed a few days later. The now-rescinded memo said the head of all executive branch departments and agencies must suspend money “including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.” (President Trump often uses the term 'Green New Deal' to refer to two major Biden-era climate laws: The Inflation Reduction Act and the Bipartisan Infrastructure Law.)

The following day, Massachusetts Attorney General Andrea Campbell, along with 22 other state attorneys general, requested an emergency temporary restraining order. In their motion, the states wrote that “without this funding, Plaintiff States will be unable to provide certain essential benefits for residents, pay public employees, satisfy obligations, and carry on the important business of government.”

Judge John J. McConnell, Jr. granted the temporary restraining order, which should have meant all funds started flowing again. That was not what happened. So last Friday, the same coalition of states filed a new motion and a request that McConnell “enforce” the restraining order.

McConnell’s order on Monday rejected the White House’s arguments for keeping some funds frozen and compelled the administration to “comply with the plain text of the [temporary restraining order].”

Following this order, Massachusetts state officials said that $230 million in frozen grants to the two environmental agencies was once again accessible in the federal funding portal used by states to request allocated funds.

Come Monday night, however, the DEP noted that two of its grants were “suspended” again in the portal. By Tuesday morning, the Solar For All grant was also “suspended.”

“We secured these funds through agreements with federal agencies, and those agreements should be honored by the new administration,” a spokesperson for the Executive Office of Energy and Environmental Affairs wrote in an email.

A spokesperson for Campbell said she and the other attorneys general will continue to "safeguard these vital resources."

“The Court’s order is clear: the Trump Administration cannot continue to freeze essential funding while our case proceeds,” she said.

In an email, an EPA spokesperson said the agency had unfrozen all funds last week. However, he added, “EPA personnel have identified certain grants programs as having potential inconsistencies with necessary financial and oversight procedural requirements or grant conditions of awards or programs.”

It was not immediately clear if the $157 million of inaccessible grant money to Massachusetts falls into this category.

It’s also not clear what will happen next. McConnell’s order that the administration comply with the restraining order did not specify any penalties if they continued to hold up money, though he did quote a 1975 case: “Persons who make private determinations of the law and refuse to obey an order generally risk criminal contempt even if the order is ultimately ruled incorrect.”

Given the uncertainty around federal funding, Massachusetts has paused its Solar For All program and several smaller initiatives to monitor air pollution and clean up contaminated land and drinking water systems.