A federal judge sided with Baltimore nonprofit and BGL client Green & Healthy Homes Initiative, ruling that the Environmental Protection Agency unlawfully terminated environmental justice grants worth $180 million.

On June 17, U.S. District Judge Adam B. Abelson granted summary judgment in favor of Baltimore-based nonprofit Green & Healthy Homes Initiative and two co-plaintiff organizations in their challenge to the U.S. Environmental Protection Agency’s termination of $180 million in grants under the Thriving Communities Program, which supports community-based environmental and public health projects. GHHI, which seeks to protect public health and advance housing stability in economically challenged communities, is represented by Brown, Goldstein & Levy partners Joshua N. Auerbach, Andrew D. Freeman, and Neel K. Lalchandani.

GHHI and co-plaintiffs the Minneapolis Foundation and Philanthropy Northwest were selected by the EPA in 2023 to serve as regional grantmakers, responsible for awarding subgrants to local and tribal government agencies and community-based organizations undertaking environmental and public health projects. Congress appropriated funds for these “environmental and climate justice block grants” for “disadvantaged communities” in amendments to the Clean Air Act, enacted as part of the Inflation Reduction Act of 2022. Eligible projects include community-led air and other pollution monitoring, prevention, and remediation; investments in low- and zero-emission resilient technologies and related infrastructure; and mitigating climate and health risks from urban heat islands, extreme heat, wood heater emissions, and wildfire events. Subgrants have been awarded to support the remediation of lead and toxic chemical contamination in public parks and other community venues, the modernization of wastewater treatment processes in rural communities, reductions in severe wildfire risk in fire-prone areas, and numerous other projects.

In February 2025, the EPA sent termination notices to GHHI and other organizations, citing a new “agency priority” not to support “programs or organizations that promote or take part in . . . ‘environmental justice’ initiatives.” Those notices were forms developed by EPA’s new leadership that gave no meaningful explanation for EPA’s decision to terminate the grants. The EPA sent virtually identical form notices to hundreds of grantees operating under a wide range of programs. GHHI and its co-plaintiffs alleged that EPA’s actions were contrary to key provisions of the Clean Air Act and violated the Administrative Procedure Act.

In a 48-page opinion, the court agreed with the plaintiffs, ruling that the EPA overstepped its statutory authority by terminating the grants. “Congress expressly required EPA to use [] appropriated funds for ‘environmental justice’ programs,” Judge Abelson wrote. “By terminating Plaintiffs’ grants on the basis that current EPA leadership no longer wants to support ‘environmental justice’ programs, EPA exceeded its authority under the Clean Air Act.” The court described EPA’s position as “contend[ing] that it has authority to thumb its nose at Congress and refuse to comply with its directives.” The court further found EPA’s actions to be arbitrary and capricious under the Administrative Procedure Act.

“When EPA terminated these grants based on its newly developed hostility to the concept of ‘environmental justice’ and without providing any meaningful explanation for its actions, it ignored Congress’s instructions in the Clean Air Act as well as its responsibility to engage in reasoned decisionmaking,” said Josh Auerbach. “The court’s decision is a critical step in allowing GHHI to get back to the work of helping local groups address serious environmental and public health risks in disadvantaged communities across our region.”

Read Judge Abelson’s full opinion here.

ABOUT JOSHUA N. AUERBACH

Josh Auerbach brings over 20 years of experience representing clients in complex civil litigation and working to expand access to health care and protect consumers. Much of Josh’s experience has been in state and local government.  At the Office of the Attorney General of Maryland, Josh worked both as a litigator and as an adviser to public officials and state agencies.  His litigation experience includes leading major enforcement actions under Maryland’s consumer protection and false claims laws, as well as defending constitutional and administrative law challenges to state laws, regulations, and enforcement actions.  He began his career as an associate at Brown, Goldstein & Levy and is excited to bring his experience back to the firm as a partner. Learn more about Josh.

ABOUT ANDREW D. FREEMAN

Andy Freeman obtains results for his clients. A partner at Brown, Goldstein & Levy, he has won numerous verdicts, judgments and settlements of millions, tens of millions and in one case, over one billion dollars by mastering the relevant law and getting to know his clients, their problems and the evidence in their cases. Andy has a history of winning difficult cases with complicated combinations of law and facts or novel legal issues. Learn more about Andy.

ABOUT NEEL K. LALCHANDANI

Neel Lalchandani represents individuals, nonprofits, and companies in a diverse array of civil rights and commercial matters. Among other victories for his clients, Neel has helped secure several of the largest payments in Maryland history for victims of police misconduct, including more than $80 million for innocent men imprisoned for crimes they did not commit. Learn more about Neel here.

PLEASE FIND MEDIA COVERAGE BELOW:

Federal judge sides with Baltimore nonprofit over EPA grant cuts | The Daily Record (June 24, 2025)

US Judge Rules Trump EPA Unlawfully Terminated Environmental Justice Grants | National Law Journal (June 20, 2025)

Judge rules EPA termination of environmental justice grants was unlawful | Politico (6/18/2025)

Baltimore judge orders EPA to restore $180M in environmental justice grants | The Baltimore Banner (6/17/2025)

EPA Ordered to Rethink Enviro Justice Grant Terminations | Law360 (June 17, 2025)

ABOUT BROWN, GOLDSTEIN & LEVY

Founded in 1982, Brown, Goldstein & Levy is a law firm based in Baltimore, Maryland, with an office in Washington, DC. The firm is nationally recognized in a wide variety of practice areas, including complex civil and commercial litigation, civil rights, health care, family law, and criminal defense. Above all else, Brown, Goldstein & Levy is a client-centered law firm that brings decades of experience and passionate, effective advocacy to your fight for justice.