The First Circuit Court of Appeals has ruled in favor of a coalition of nonprofit, conservation, and community groups that won a district court order to block the Trump-Vance administration from freezing congressionally-approved investments in public health, climate resilience, and critical infrastructure.
August 9, 2026 - Boston – The First Circuit Court of Appeals has ruled in favor of a coalition of nonprofit, conservation, and community groups that 
won a district court order to block the Trump-Vance administration from freezing congressionally approved investments in public health, climate resilience, and critical infrastructure. The appeals court denied the government’s appeal and upheld the preliminary order issued against the funding freeze that secured the release of this critical funding.
The decision comes in Woonasquatucket River Watershed Council v. Department of Agriculture, a case filed by Democracy Forward and DeLuca, Weizenbaum, Barry & Revens on behalf of Woonasquatucket River Watershed Council, National Council of Nonprofits, Eastern Rhode Island Conservation District, and Green Infrastructure Center. The plaintiffs were later joined by the Childhood Lead Action Project and Codman Square Neighborhood Development Corporation.
“The Courts continue to recognize that Congress approves and sets budgets, not presidential administrations. Communities nationwide rely on the funds local nonprofits receive from federal grants. They should be able to rely on those grants, not fear shifting politics will suddenly end their programs,” said Diane Yentel, CEO and president of the National Council of Nonprofits. “Beyond the win for nonprofits and communities, this win is another for the rule of law our democracy depends upon.”
“For ERICD, this decision is especially important because it protects access to federal funding that directly supports our ability to carry out conservation work in the communities we serve. As a plaintiff in this case, ERICD took a stand not only for our organization, but for conservation districts, nonprofits, municipalities, farmers, and community partners that rely on congressionally approved federal investments to plan and implement critical projects,” said Sara Churgin, executive director of Eastern Rhode Island Conservation District. “The ruling provides greater certainty that funding already authorized by Congress cannot simply be withheld, helping ensure that projects addressing soil and water conservation, climate resilience, sustainable agriculture, infrastructure, and environmental education can continue moving forward. For a small organization like ERICD, interruptions or uncertainty in federal funding can have an outsized impact on our programs, staff, partners, and the communities that depend on this work. This decision reinforces the stability needed to continue investing in the long-term health and resilience of Rhode Island’s natural resources.”
“The Green Infrastructure Center depends upon these vital federal funds to assist hundreds of cities, towns and tribes in using nature to reduce excessive temperatures, resist storm impacts, clean stormwater and make liveable communities. Today’s victory helps the hundreds of urban and rural communities we assist and we are grateful that justice has been served, upholding our federal funding to help communities become resilient,” said Karen Firehock, Executive Director of the Green Infrastructure Center.
Congress passed the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (otherwise known as the Bipartisan Infrastructure Law) to support long-overdue investments in public health, climate resilience, and critical infrastructure. These laws fund community-led projects that expand green spaces, reduce pollution, cut energy costs, and build climate-ready infrastructure across the country. In early 2025, however, the Trump-Vance administration ordered a freeze on funds authorized under these laws through the “Unleashing American Energy” executive order. The directive, implemented by agencies including the Environmental Protection Agency and the U.S. Departments of Agriculture, Energy, the Interior, and Housing and Urban Development, halted billions in investments, stopping projects already underway, threatening jobs, and putting health and environmental initiatives at risk.
The case, filed on March 13, 2025, challenges the Trump-Vance administration’s unlawful decision to suspend funding that Congress had already appropriated, arguing that the freeze violates the Administrative Procedure Act and exceeds executive authority. Filings have detailed how this freeze jeopardizes local economies, disrupts environmental restoration, and undermines legal commitments to community-based infrastructure projects, and the plaintiffs sought an emergency court order to lift the freeze immediately, emphasizing the urgent harms to workforce development, public health, and neighborhood resilience resulting from the funding suspension.
On April 15, 2025, the court granted the preliminary injunction, ordering the Trump-Vance administration to release the frozen funds and allowing stalled projects to resume. The decision marked the largest court-ordered restoration of IRA and BIL funding to date and affirmed the legal limits on executive power to override congressional intent. The injunction was appealed, and today the appeals court agreed to keep the order unfreezing funding largely in place.
“The president does not have the authority to freeze federal funding already guaranteed by Congress as a political cudgel. Today’s decision to uphold the lower court’s ruling is yet another win for our democracy and the separation of powers,” said Skye Perryman, President and CEO of Democracy Forward. “Thanks to the courage of our plaintiffs in this case, crucial funding will continue to allow communities throughout the nation to move forward with important projects that expand green spaces, reduce pollution, cut energy costs, and build climate-ready infrastructure across the country.”
Democracy Forward’s legal team involved in this case includes Kevin Friedl, Jessica Morton, and Robin Thurston.
Read Friday’s decision here.
Democracy Forward Foundation is a national legal organization that advances democracy and social progress through litigation, policy, public education, and regulatory engagement. For more information, please visit www.democracyforward.org.
Source: Democracy Forward Foundation
