Solar for All Program Update: Agencies Must Unblock IRA Funds by Today After Court Ruling

The Trump administration has until 5 p.m. Wednesday to respond to a judge’s order to unfreeze Inflation Reduction Act (IRA) funds that have already been allocated by Congress. Judge Mary McElroy of Rhode Island set the deadline, ordering federal agencies to resume disbursing all IRA and Infrastructure Investment and Jobs Act (IIJA) grants nationwide. 

Despite the preliminary injunction, funds are still not flowing to many nonprofits, as EPA officials responded to inquiries stating the review process is ongoing. Federal agencies must detail their compliance with the court order or risk being held in contempt.

In a 63-page ruling, Judge Mary McElroy of the U.S. District Court in Rhode Island concluded that it’s unlawful for federal agencies to issue a sweeping freeze on congressionally authorized spending. “Nonprofits were left adrift as they scrambled to make sense of the government’s actions here. The pause placed critical climate, housing, and infrastructure projects in serious jeopardy, while also threatening the livelihoods of the nonprofits’ employees as well as their fundamental missions,” McElroy wrote in her decision.