Notice of Court Order 1:25-cv-00097-MSM-PAS
ID: 125cv00097MSMPASType: Special Notice
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ENERGY, DEPARTMENT OFENERGY, DEPARTMENT OF
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    Description

    The Department of Energy is issuing a special notice regarding a court order (1:25-cv-00097-MSM-PAS) that impacts grantees who have received funding under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. This notice is a response to a preliminary injunction granted by the court, which allows certain nonprofits to access their funds that were previously frozen due to an executive order and subsequent memorandum from the Office of Management and Budget. The case highlights the importance of adhering to lawful administrative procedures in federal governance, particularly concerning grant disbursements. For further details, grantees are encouraged to review the attached document outlining the court's findings and implications for funding access.

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    The document outlines a legal case involving several nonprofits challenging a federal funding freeze imposed by multiple U.S. agencies following an executive order and memorandum from the Office of Management and Budget (OMB). The plaintiffs, including the Woonasquatucket River Watershed Council and the Childhood Lead Action Project, argue that the freeze on funds from the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) is arbitrary and exceeds the authority of the agencies. The court finds that the nonprofits have demonstrated standing and a likelihood of success on their claims under the Administrative Procedure Act (APA), indicating that the funding freeze lacks reasonable explanation and infringes on legislatively granted powers. As a result, the court grants a preliminary injunction, allowing these nonprofits access to their funds while the case proceeds. The document emphasizes the essential balance between policy implementation and lawful administrative procedures, underscoring how procedural integrity is vital in federal governance regarding grant disbursements.
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    Special Notice
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