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.

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.