The Environmental Protection Agency agreed to permanently restore about $19 million in University of California research grants, including studies into wildfire-smoke health effects and water management, that it canceled, according to a settlement filed in federal court Wednesday.
The settlement would resolve one part of a broader lawsuit, brought by a legal team that includes UC law school professors and additional attorneys, challenging roughly $2 billion in funding cuts across seven federal agencies.
Wednesday’s deal covers 24 research grants, including projects at UC San Francisco and UC Berkeley. The agreement still needs the approval of U.S. District Judge Rita Lin, who previously ruled against the Trump administration in the case.
Researchers’ claims against the six other agencies would continue.
The EPA already reinstated the grants after Lin issued a preliminary injunction June 23, 2025. The settlement would commit the agency to funding the grants through their remaining terms, including eligible extensions, as long as recipients meet their grant requirements. For researchers, that would reduce the risk of another funding cutoff disrupting their work while the broader legal battle continues.
The agreement says the EPA “will not terminate, indefinitely suspend, or disallow costs for a covered grant.” The agency still could cancel funding if recipients violate their grant terms, but it would have to provide an individualized explanation.
The Trump administration asked the Supreme Court last month to review a May appeals court ruling that upheld part of Lin’s injunction. The justices have not decided whether to hear the case.
Claudia Polsky, director of UC Berkeley’s Environmental Law Clinic and a lawyer for the plaintiffs, welcomed the agreement. “I’m thrilled they can now substitute research collaboration sessions for legal strategy meetings,” she said.
The grants involve 35 researchers from UC campuses. The three named plaintiffs with EPA grants are Neeta Thakur of UC San Francisco and Ken Alex and Nell Green Nylen of UC Berkeley.
An EPA spokesperson did not immediately respond to a request for comment. In the settlement, the agency “expressly denies any liability or wrongdoing.”
The UC system is not party to the case.
In a statement, a UC spokesperson said “federal cuts to research funding threaten work critical to protecting our communities” and the settlement is “important to preserving funding that will build a healthier and stronger future for our country.”
Six researchers filed the class-action lawsuit in June 2025 with legal help from Polsky, Berkeley Law Dean Erwin Chemerinsky and outside attorneys.
EPA’s cancellation letters last year said the awards no longer served program goals or agency priorities. The researchers alleged the administration unlawfully targeted work perceived to be related to diversity, equity and inclusion and halted grants without explaining its decisions about individual projects.
The remaining disputes in the case involve the National Science Foundation, National Endowment for the Humanities, National Institutes of Health and the Departments of Defense, Transportation and Energy.
Lin has paused written arguments on whether to issue a final ruling on most parts of the case while the government seeks Supreme Court review.
But a portion of the lawsuit challenging the Energy Department’s funding cuts is moving forward. The agency acknowledged in court filings that it selected grants for cancellation in October 2025 “based solely on the political identity of the grant recipient’s state,” targeting blue states including California.
Lin has scheduled an Oct. 20 hearing on whether those cuts violated the Constitution.
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