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Let’s start this update by making a few points very clear:
– The “One Big Beautiful Bill” (HR1) does not change the status of your signed grant agreement.
– EPA cannot force you to close out your grant if you are a Section 138 Environmental Justice grantee with a pending lawsuit or administrative dispute, nor if you are covered under other lawsuits.
– While you need to always put your organization and the communities that you serve first, we hope you will continue to hold fast and assert your legal rights to perform the work that you were funded to do.
Below are updates on five topics:
1. EPA’s Attempts to Force Closeouts: We have now seen several different ways in which the agency is trying to pressure organizations and want to equip you with some additional guidance.
2. Lawsuit Updates & Talking Points: The first hearing for the class action lawsuit for Section 138 grantees is scheduled for August 5th. Here is some guidance on how to talk about the lawsuit (with some important caveats).
3. August Recess: Your senators and representatives will be back in their states and districts soon, which means you have ample opportunity to highlight your stories.
4. Recap of Last Week’s Webinar: Below is a recap of last week’s webinar.
5. Agendas and Registration for Upcoming Webinars: See what we have planned next and make sure you’re registered TODAY for Wednesday’s webinar at 12:30pm ET.
And as a reminder:
– If you haven’t filled out L4GG’s intake form since March 21, please take a moment to do so.
– If you can’t fill out the form, please send a note to FPC@L4GG.org.
Updates:
1. EPA’s Attempts to Force Closeouts
Multiple organizations have reported that EPA is pressuring them to close out through a number of tactics. We will go into more detail on what to do at our webinar this Wednesday at 12:30pm ET. In the meantime, please review L4GG’s guidance on how to respond to EPA.
REMINDER: Do NOT close out nor begin the termination process proactively!
– If you are past your 30-day window or nearing your 120-day deadline and are NOT in an administrative appeal or dispute process, please reach out to L4GG through our website.
– If you are in EPA’s administrative appeal process, stay there for now.
2. Lawsuit Updates & Talking Points
– The Section 138 Class Action lawsuit was reassigned to a different judge, and the hearing is now scheduled for Tuesday, August 5, at 4pm ET. If there is an option to listen virtually, we will share it in advance, but we do not expect this to be open to the public.
– You are welcome and encouraged to talk about your grant and the harms you’re facing with the press and on social media. However, if you are asked about the lawsuit specifically, please review these talking points and best practices.
3. August Recess
The Senate will be in recess from August 4 – September 1, and the House will be in recess from July 25 – September 1. That means both senators and representatives will be in their states and districts for events and meetings.
– This is a great opportunity to partner with friendly elected officials on events highlighting the impact of EPA’s attempted terminations and/or rally your supporters to help spotlight those elected officials who voted to rescind hundreds of millions of dollars of EPA funds.
– If you are interested in participating in an event with your congressional representatives, please email Marc Boom so we can connect you and/or provide communications support.
4. Recap of Our Last Webinar
Over 200 people joined our July 9 webinar that covered the following topics:
– Reconciliation Bill Update: Marc Boom (EPN) shared an update about the Reconciliation Bill (HR1 – One Big Beautiful Bill), which was passed by both chambers and signed by President Trump on July 4th. It rescinds unobligated Greenhouse Gas Reduction Funds (GGRF) and rolls back the technology-neutral Production Tax Credit (PTC 45Y) and Investment Tax Credit (ITC 48E), which will likely impact implementation of many grant programs. However, it does not directly impact signed award agreements.
– Termination & De-obligation: Katherine Christopher (L4GG) explained the difference between obligation, termination, and de-obligation of grant funds. Grant funds are “obligated” when an assistance agreement is signed between the grantee and the awarding agency. Grant programs can be “terminated” when the grant program is finished OR for non-compliance with terms and conditions; or findings of fraud, waste, or abuse; or for a change in agency priorities IF that is allowable in your terms and conditions. Grant funds may be de-obligated after a grant is terminated AND closed out. Funds cannot be legally de-obligated before close-out is complete.
– Section 138 Lawsuit: Larissa Koehler (L4GG) provided an update on the Section 138 Class Action Lawsuit that was filed June 25th. The schedule was set by the judge, and we anticipate rulings to come quickly. Please see Background Information and Status Updates at the bottom of this page for more information.
– Recordings and slides from past webinars and office hours can be found on EPN’s website.
5. Agendas and Registration for Upcoming Webinars
Please email Caitlin Bolger with questions you’d like covered on the call or suggestions for future presentations and please register ASAP to join us! We can’t accept registrations on the day of the webinar.
– July 23, 12:30-1:30pm ET: This Wednesday’s webinar will: (1) provide an overview of EPA’s efforts to force closeouts and options to respond; (2) share insights into the Section 138 class action lawsuit; (3) offer communications and engagement strategies for the August recess; and (4) provide time to answer any questions you may have. We will make sure to finish all presentations before 1pm ET to accommodate those who wish to attend the Service of Appreciation for Federal Environmental Justice Staff and Grantees—a virtual event honoring EPA and other agency environmental justice staff and grantees featuring Charles Lee, Benjamin Chavis Jr., Richard Moore, and Dollie Burwell.
– August 13, 12:30-2pm ET: Our next webinar will include an update from the first hearing on the Section 138 lawsuit, and a briefing on how to prepare for and respond to congressional inquiries—including letters requesting information and invitations to testify at a hearing.