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Climate Group Sues Trump Administration and Citibank Over $7 Billion in Frozen Clean Energy Funds

Lawsuit alleges improper fund freeze by EPA and Citibank, threatening renewable energy projects and staff layoffs.

Sen. Chris Van Hollen, D-Md speaks at a rally at Health and Human Services headquarters to protest the polices of President Donald Trump and Elon Musk Wednesday, Feb. 19, 2025, in Washington. (AP Photo/John McDonnell)
Signage at the headquarters of the United States Environmental Protection Agency (EPA) in Washington, D.C., U.S., February 18, 2025.
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Overview

  • Climate United, a nonprofit awarded $7 billion under the Biden administration's Greenhouse Gas Reduction Fund, has filed a lawsuit against the Trump EPA and Citibank for freezing its funds.
  • The group claims the freeze, initiated by EPA Administrator Lee Zeldin, is illegal and politically motivated, citing a lack of evidence for alleged misconduct.
  • The frozen funds are critical for clean energy initiatives, including solar projects in Arkansas, electric truck leasing in California, and collaborations with tribal groups in Oregon and Idaho.
  • Citibank, acting as a financial agent, stated it is cooperating with the federal government and will comply with court rulings but has not clarified its reasons for freezing the account.
  • The lawsuit also highlights broader concerns about the Trump administration's scrutiny of the Greenhouse Gas Reduction Fund, including alleged attempts to claw back $20 billion in congressionally approved funding.