Climate Fund Clawback Ruling Threatens to Reshape Grantmaking

A recent appeals court decision allowing the EPA to rescind billions of dollars in grants sets a troubling precedent that could reshape the way Congress disburses grant money, attorneys and advocates say.

The fallout could affect a wide range of transportation, technological, and research programs that Congress funds under the public-private partnership model, undermining a core Republican belief that the private sector should play a role in solving the nation’s problems.

The US Court of Appeals for the District of Columbia Circuit found Sept. 2 that the Environmental Protection Agency can hold back $16 billion in federal grants earmarked for ...