Overview

• Climate United has filed a lawsuit against the EPA and Citibank, alleging the unlawful freezing of $7 billion in grant funds intended for clean energy initiatives.
• The funds were part of a $20 billion program under the Inflation Reduction Act, aimed at financing projects like electric vehicle infrastructure and energy-efficient housing, particularly in underserved communities.
• EPA Administrator Lee Zeldin criticized the program as rushed and lacking oversight, describing it as a 'green slush fund' initiated by the Biden administration.
• The lawsuit argues that the freeze violates the Administrative Procedure Act and the Fifth Amendment, with Climate United stating it has no alternative funding sources to replace the blocked money.
• The freeze has sparked controversy within the Justice Department, leading to the resignation of a senior prosecutor who opposed opening a criminal investigation due to insufficient evidence.