US President Donald Trump’s administration has reportedly asked the Environmental Protection Agency (EPA) to freeze all grants and contracts.
The news follows the inauguration of the new President last week.
The EPA awards billions of dollars worth of funding every year to support programmes around environmental testing, clean-ups and research.
Reports claim it is unclear whether the freeze is temporary or permanent.
Mr Trump has nominated Oklahoma Attorney General Scott Pruitt to head the EPA but is awaiting Senate confirmation.
Mr Pruitt is said to be a critic of Barack Obama’s climate change policies, which is not part of the new President’s energy plans.
Rick Perry, former Texas Governor, climate change sceptic and Mr Trump’s pick for Energy Secretary, has however said he will base energy decisions on “sound science”.