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Environmental nonprofits and researchers that receive US government support were thrown into confusion by President Donald Trump’s blanket funding freeze. Even as some money starts flowing again, the administration’s promise to cut off funds for “the green new deal” and environmental justice looms. Find out more below. You can also read and share the full story on Bloomberg.com. 

A climate funding Ice Age

By Zahra Hirji and Danielle Bochove

When President Donald Trump’s administration last week shut off the spigot of federal grant money, likely in violation of US law, it caused confusion and panic among groups and researchers that work on clean energy, climate change and environmental justice.

Nonprofits, small businesses and state and city agencies abruptly lost access to millions of dollars that were already under contract and being used. After the National Science Foundation (NSF) paused all its grants, researchers rushed to find out if their projects were affected, and some had their salaries frozen. 

A federal judge temporarily blocked the spending pause days later. But uncertainty persists, and the full impact of the disruption, which was unprecedented, is still coming into view. 

The Environmental Protection Agency headquarters in Washington, DC. Photographer: Eric Lee/Bloomberg

“It’s been very confusing,” says Alex Bomstein, executive director of the nonprofit Clean Air Council, which is headquartered in Philadelphia and has offices in Wilmington and Pittsburgh. The group has three Environmental Protection Agency (EPA) grants and says its access to this money was turned off, then back on, then again switched off over the course of the week. “We’ve gotten mixed messaging, and obviously it concerns our employees as well as the communities that we serve,” Bomstein says. 

The Ridgeland, Mississippi-based nonprofit 2C Mississippi can’t access project funds from an EPA grant awarded last August, says Dominika Parry, the group’s founding president and CEO. 

“It’s surreal. None of this makes sense,” she says. “I am overwhelmed trying to make decisions based on the information we have, and the information keeps changing.” By Monday night, Parry was hearing from peers that their funding was available again, although she was still locked out of her grant. 

Parry isn’t sure if her group will need to furlough employees. An energy consulting firm in Spokane, Washington, called Zero Emissions Northwest already took that step, says its president David Funk, due to his inability to access grant money from the Department of Agriculture. Not only had he not gotten grant access back by Monday night, he received an email from the agency that day reiterating the funding pause, he says.

At Brown University in Providence, Rhode Island, at least one postdoctoral researcher whose work is funded by the NSF was “unable to access her salary,” according to environmental studies professor Laurence Smith. 

The saga started Jan. 20 when Trump, who has denied and minimized climate change, signed an executive order directing a pause on climate funds in connection with two major laws passed under former President Joe Biden, the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. One week later, Trump’s Office of Management and Budget issued a memo announcing a more sweeping, government-wide pause of all agency grants, loans and other financial assistance. 

Even though an initial legal challenge prompted a federal judge in Washington to issue a temporary halt on the freeze — which led to the administration withdrawing the controversial OMB memo days later — grant funding for climate projects overwhelmingly stayed frozen. A second legal challenge prompted another judge in Rhode Island last Friday to temporarily block the freeze. Even after all that, the judge in Washington on Monday raised fresh concern that the reversal still isn’t being fully implemented by the administration.

Bomstein’s group, like many others, had to delay work due to the freeze. But the negative impacts extend much further, he notes. 

If the group keeps struggling to access federal funds, he says, it’s public health that ultimately will suffer. The Clean Air Council has programs to expand local air monitoring in Delaware and Pennsylvania; cutting them, he explains, would mean “people don’t get the data needed to evaluate health impacts, which means more people are going to get sick and die in these communities.” On Monday afternoon, the group was notified that its grant access had been restored. 

2C Mississippi was awarded a nearly $20 million EPA grant just a few weeks ago but has not yet received an official award letter. That money is supposed to be invested in a new resilience hub in central Mississippi, Parry says, where many people need a place to evacuate to or access services such as drinking water and electricity during storms, heat waves and other disasters.

The government’s actions have already had a chilling effect, especially in academia, and there’s widespread worry about what’s yet to come.

President Donald Trump signs executive orders in the Oval Office of the White House on Jan. 20.  Photographer: Jim Lo Scalzo/EPA

Trump’s order to end IRA and Bipartisan Infrastructure Law expenditures, and another Day One order to terminate jobs, programs and grants relating to diversity, equity, and inclusion (DEI) and environmental justice, loom over organizations and scientists, as does the possibility of future efforts to target climate-directed work. 

Smith, of Brown University, says he has three new federally funded projects he would normally recruit graduate students to work on, “but I don’t know whether I should recruit them or not.” 

Liza Roger, a marine biologist and geochemist at Arizona State University, is in the fortunate position of having secure funding right now. But she’s starting to consider whether she needs to look overseas in the future: “We just have no idea what they’re going to come up with next.”

Read the full story on Bloomberg.com. For more climate and energy news, please subscribe 

Unavoidable costs

$368 billion
These are the global economic losses from weather catastrophes in 2024, according to Reinsurer Aon estimates, up from $216 billion in 2016. All nations face a greater onslaught from climate-driven events.

Turning off the tap

"If it was difficult to get $300 billion with the US negotiating and committed to having policies to combat climate change, it will certainly be more difficult now."
Andre Correa do Lago
The Brazilian diplomat recently named president of COP30
Delegates at COP29 in Azerbaijan last November fought hard to reach a deal to triple climate finance to $300 billion by 2035. 

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Worth a listen

With President Donald Trump back in office, the US is leaving the Paris Agreement for the second time. Unlike in 2017, this withdrawal is set to have more lasting consequences, Akshat Rathi tells producer Mythili Rao. Meanwhile, a new report from BloombergNEF finds that global investment in the energy transition surpassed $2 trillion for the first time in 2024, with China driving two thirds of that growth. BNEF Deputy CEO Albert Cheung shares the report’s highlights, and reflects on the role international competition will play in this next phase of reaching net zero.

Listen now, and subscribe on Apple,  Spotify, or YouTube to get new episodes of Zero every Thursday. 

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