A recent shift in EPA funding approvals has raised questions about potential delays in environmental projects, disaster response and clean energy initiatives.

According to an AP report, all EPA division directors and deputy directors must now obtain approval from the Department of Government Efficiency (DOGE) for any assistance agreement, contract, grant, interagency agreement, or amendment to a work plan or statement of work that is valued at $50,000 or more.

The policy applies across EPA programs, potentially affecting a broad range of environmental and public health efforts.

Executive Order Compliance Review Form

The timing of this directive is notable. It comes just days after a federal judge in Rhode Island blocked the Trump administration’s freeze on EPA and other federal agency funds.

Sen. Sheldon Whitehouse (D-RI) contends that the new layers of approval could slow down essential EPA activities.

In a March 7 letter to EPA Administrator Lee Zeldin, Sen. Whitehouse noted that in addition to the DOGE review, EPA program offices must now also attach an Executive Order Compliance Review Form to all funding requests, ensuring alignment with the Administrator’s “Powering the Great American Comeback” initiative and other recent executive orders.

Sen. Whitehouse said in the letter that added bureaucracy could disrupt routine work such as hazardous waste disposal, municipal recycling funding, and disaster relief efforts. He also noted that delays in funding approvals could hinder EPA’s ability to respond quickly in emergency situations.

Single-Sentence Summaries?

Further complicating the process, the new funding review requires that the scope of work for a project be summarized in a single sentence. Given that many EPA agreements involve complex scientific or technological components, this limitation raises concerns about the depth of review that can be conducted. If funding approvals hinge on a single sentence, the DOGE evaluation could be limited in projects that require detailed technical or regulatory oversight.

The combination of downsizing at EPA and these new procedural hurdles could slow or block permits and enforcement actions. There is also uncertainty about how these requirements will affect Superfund cleanups and long-term environmental remediation efforts. Five-year reviews at federal Superfund sites may be delayed, and responsible parties may face new challenges in budgeting for remediation efforts due to the uncertainty in timing of projects.

Impact on Renewable Energy

Beyond the EPA's broad environmental oversight, these changes could impact the development of renewable energy projects.

In 2024, reportedly 84% of new U.S. power came from solar, yet federal funding through the Solar for All program and the Greenhouse Gas Reduction Fund for clean energy projects are now under review and uncertain. On March 11, 2025, EPA canceled $20 billion in funding to the Greenhouse Gas Reduction Fund citing “material deficiencies which pose an unacceptable risk to the lawful execution of these grants." The funding had been appropriated by Congress as part of the Inflation Reduction Act. At the same time, the Trump administration has signed an executive order to position the United States as a global leader in artificial intelligence — an energy-intensive initiative. How these competing priorities will influence funding decisions remains an open question.

While the EPA maintains that awards are not official until a Notice of Award is issued by the Office of Grants and Debarment, it remains unclear how these new procedures will impact the agency’s broader mission.

Deregulation

EPA continues its efforts to scale back environmental regulations.  On March 12, 2025, Administrator Zeldin announced that EPA is launching “the biggest deregulatory action in U.S. history.” Administrator Zeldin identified 31 actions that the agency would pursue, including:

• Reconsidering various findings and regulations in the energy sector such as the endangerment finding that underpins various GHG regulations
• Overhauling the social cost of carbon
• Terminating environmental justice and DEI initiatives
• Redirecting enforcement resources

(See the March 12, 2025, EPA release – EPA Launches Biggest Deregulatory Action in U.S. History)

For now, stakeholders should prepare for a shift in the agency’s priorities and potential slowdowns in EPA-related funding and approvals. How the deregulation agenda will play out and its impact on the energy and other sectors remains to be seen.

For more information on this alert or EPA policies in general, contact Karen H. Davis at 610.458.6702 or kdavis@foxrothschild.com or any member of Fox Rothschild’s Environmental Department.

This information is intended to inform firm clients and friends about legal developments, including the decisions of courts and administrative bodies. Nothing in this alert should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this alert without seeking the advice of legal counsel. Views expressed are those of the author(s) and not necessarily this law firm or its clients. Prior results do not guarantee a similar outcome.