NGOs Appeal Denial of Preliminary Injunction to Stop Trump Administration’s Unlawful $4.7 Billion Fossil Fuel Handout

WASHINGTON – Yesterday, Friends of the Earth US (FOE-US) and Justiça Ambiental (JA, or Friends of the Earth Mozambique) filed an appeal with the federal U.S. Court of Appeals for the D.C. Circuit, arguing a preliminary injunction is necessary to prevent the U.S. Export-Import Bank (EXIM) from disbursing nearly $5 billion in financing for the Mozambique LNG project. 

On October 10, the lower court denied their request to pause disbursement while the legality of the financing is litigated, finding that although the groups had made a “strong showing” that the refusal would cause “irreparable harm,” they were unlikely to succeed on the merits of their claims. In their appeal, FOE-US and JA challenge that finding and urge the D.C. Circuit to stop EXIM from disbursing funds to TotalEnergies, the project operator, until the case is decided. 

In July 2025, FOE-US and JA filed their initial lawsuit against EXIM in the federal district court for the District of Columbia arguing EXIM’s approval of taxpayer financing for the project violated federal law. They are being represented in this matter by the nonprofit organization EarthRights International.

“Violence in northern Mozambique has been spiking since mid-July – and there have been multiple attacks close to the gas site. In 2021, over 1,200 people in Palma town were killed, while there was military protection for the gas site. The new security conditions now concentrate Rwandan and Mozambican troops at the gas site and leave civilians vulnerable. We are concerned that allowing the money from the U.S. government to move this project forward will make the situation on the ground worse. This appeal is made in the interests of the safety of local peoples,” said a spokesperson for JA. 

“We were disappointed by the court’s denial, but we did not lose on the merits of the case. We still hold that EXIM violated the law and its own procedures when approving nearly $5 billion for a French oil company. We are appealing this ruling to prevent the humanitarian crisis from potentially worsening in northern Mozambique,” said Kate DeAngelis, Economic Policy Deputy Director for Friends of the Earth US.

“FOE and JA are directly impacted by this project and should be able to challenge EXIM’s decision, which EXIM made without considering the harms to local people,” said Richard Herz, Chief Litigation Attorney, EarthRights International.

The LNG project, which seeks to exploit and liquify natural gas reserves off the coast of Mozambique, has already displaced thousands of local people, will cause significant environmental destruction, and plans to operate in the midst of an ongoing violent conflict and humanitarian crisis. It has been the site of allegations of grave human rights violations, which are the subject of pending government investigations in multiple countries, and for which TotalEnergies now faces a new criminal complaint in France accusing the company of complicity in war crimes.

Despite these serious concerns, the lawsuit alleges that in February 2025, President Donald Trump illegally appointed members of EXIM’s Board of Directors without the consent of the Senate. Just weeks later, in March 2025, EXIM’s unlawfully constituted “acting” board announced final approval of the massive loan to the foreign oil company. EXIM rushed through approval without conducting required environmental reviews, economic assessments, or allowing input by the public and Congress. EXIM failed to follow its own charter and federal law, setting a dangerous precedent for future decisions implicating taxpayer funds.

Expert contact: Kate DeAngelis, [email protected]