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2mo ago

Environmental Group Sues EPA and Citibank Over $7 Billion Funding Freeze

Climate United claims the EPA unlawfully blocked grant funds for clean energy projects, citing administrative overreach and lack of due process.

The headquarters of the United States Environmental Protection Agency (EPA) in Washington, D.C., U.S., February 18, 2025.
EPA Administrator Lee Zeldin makes a water policy announcement and holds a signing ceremony with members of the West Virginia Congressional Delegation at the EPA headquarters in Washington, D.C., U.S., February 18, 2025.
Organizations granted money under the Greenhouse Gas Reduction Fund are suing the EPA after the agency froze bank accounts holding the funds.
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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.