FBI and EPA Freeze Climate Grant Funds, Prompting Legal Battles

Citibank froze accounts of nonprofits and state agencies at federal request, citing alleged fraud, sparking accusations of political interference.

Citibank froze accounts of several nonprofits and state agencies in February after requests from the FBI, EPA, and Treasury, citing alleged criminal violations such as conspiracy to defraud the U.S.
The funds in question are part of the $27 billion Greenhouse Gas Reduction Fund established by the Inflation Reduction Act to support clean energy initiatives through green banks.
Organizations impacted include Habitat for Humanity, United Way, and DC Green Bank, with the freezes disrupting sustainability projects and operations.
Three nonprofits have filed lawsuits against Citibank and the EPA, claiming the freezes violate federal law and breach contracts, while a federal judge has demanded evidence of alleged fraud.
Critics, including Sen. Sheldon Whitehouse, allege the freezes are politically motivated, targeting climate finance efforts supported by the previous administration.