A federal judge has ruled that the Trump administration acted unlawfully when it canceled millions of dollars in environmental justice grants, including $60 million designated for the Minneapolis Foundation.
U.S. District Court Judge Adam Abelson ruled that the Environmental Protection Agency (EPA) violated federal law when it attempted to cancel funding for the Thriving Communities Grantmaking Program. The decision means more than $180 million in blocked funds must be restored to three regional groups tasked with distributing the grants.
The Minneapolis Foundation, which filed the lawsuit alongside Maryland’s Green & Healthy Homes and Washington state’s Philanthropy Northwest, will now receive the $60 million it was originally promised. Of that, $48 million will be distributed across Minnesota and the wider Great Lakes region.
The Thriving Communities program is part of over $1 billion in environmental justice funding authorized by the Inflation Reduction Act. Much of that money had been frozen or eliminated by the Trump administration earlier this year, particularly funding earmarked for underserved communities—urban, rural, and Tribal—disproportionately impacted by pollution.
Minneapolis Foundation CEO R.T. Rybak said winning the lawsuit was deeply rewarding after what he called a “long, unnecessary fight.”
“This money is going toward healthy homes, clean water, and clean air,” Rybak said. “It’s going to the communities that need it most—those that have been most harmed.”
Before the EPA cut the program on May 1, the foundation had already distributed $625,000 to 10 projects, including three in Minnesota. The foundation had received over 650 applications for grants and is now preparing to begin distributing funds again.
“We had about 12-and-a-half minutes of celebration before getting back to work,” Rybak said.
The EPA told Sahan Journal it is currently reviewing the court’s decision.
Court Rebukes EPA Over Congressional Funding Mandate
Judge Abelson’s ruling was clear: the EPA’s move to cancel the grants was not only arbitrary but also a violation of Congressional authority.
“EPA contends that it has authority to thumb its nose at Congress and refuse to comply with its directives,” Abelson wrote, noting that the Inflation Reduction Act legally required the agency to administer the grants.
However, the decision only applies to the Thriving Communities Grantmaking Program. Other Minnesota organizations expecting federal climate funding through different programs—such as the Community Change Grants—will not receive relief from this ruling.
One such group is the Minneapolis American Indian Center, which was expecting $4 million for energy-efficiency upgrades under the Resilient Minneapolis project. Executive Director Mary LaGarde said the center has moved forward with renovations but still needs funds for planned solar panel installations.
“We’re still actively fundraising to meet our capital campaign goal,” said LaGarde, noting the group has raised $30 million of its $32.5 million target.
Broader Legal Battle Over Climate Funding Continues
The Minneapolis Foundation’s legal victory is just one piece of a broader fight over environmental and climate funding. Several other cuts ordered by the Trump administration—particularly to programs funded through the Inflation Reduction Act—are currently being challenged in federal court.
One major legal battle involves $20 billion in Greenhouse Gas Reduction Grants, which the EPA also halted. That case is now under review by a federal appeals court.
For now, environmental justice advocates are celebrating a hard-won win—and preparing to get much-needed funding back into impacted communities.
