In Washington, a federal judge issued an order on Tuesday halting the Trump administration’s attempt to cut $14 billion in grants allocated to three climate organizations by the Biden administration. This decision arose after assessing the administration’s claims of misconduct within the grantee organizations and declaring these allegations as inadequately supported.
The directive from U.S. District Judge Tonya Chutkan temporarily prevents the Environmental Protection Agency (EPA) from abolishing the grant program, which has a total budget of $20 billion. The ruling also restrains Citibank, which manages the funds on behalf of the EPA, from redirecting the money back to the government or to any other entity.
EPA Administrator Lee Zeldin had previously accused the organizations of financial mismanagement and corrupt dealings, leading to the freezing of the grants. However, Judge Chutkan found Zeldin’s accusations unfounded upon careful examination of the case.
“At this juncture, EPA Defendants have not sufficiently explained why unilaterally terminating Plaintiffs’ grant awards was a rational precursor to reviewing” the green bank program, wrote Judge Chutkan in her ruling.
The ruling was one of three delivered against the Trump administration on the same day. Each decision was made rapidly amidst significant political tension, including President Donald Trump’s call for the impeachment of a judge blocking deportation flights, which drew an unusual reprimand from Supreme Court Chief Justice John Roberts.
Organizations such as Climate United Fund, along with the Coalition for Green Capital and Power Forward Communities, pursued legal action against the EPA, Zeldin, and Citibank. They argued the funds — awarded through the Greenhouse Gas Reduction Fund established under the 2022 Inflation Reduction Act — were unjustly withheld.
The groups claimed the grant freeze hindered their capacity to initiate new projects and potentially posed a risk to their workforce. They firmly denied any allegations regarding improper fund management.
Though Judge Chutkan did not lift the freeze imposed on the account by Citibank, her order maintained the existing funding situation as the lawsuit proceeds.
The coalition of organizations, comprising Climate United awarded nearly $7 billion, the Coalition for Green Capital with $5 billion, and Power Forward Communities receiving $2 billion, underscored the significance of these funds. The financial support, opposed unanimously by Republicans who criticized it as a “slush fund,” aims to bolster clean energy endeavors.
Following the grant freeze, the EPA initiated steps to terminate the allocations, an action contested by Climate United and alike. Beth Bafford, CEO of Climate United, viewed the judicial decision as a positive outcome.
“In the coming weeks, we will continue working towards a long-term solution that will allow us to invest in projects that deliver energy savings, create jobs, and boost American manufacturing in communities across the country,” Bafford asserted.
Meanwhile, Zeldin, in a statement, reiterated his commitment to reclaim the funds, alleging that the grant distribution disadvantaged the EPA’s oversight functions.
“I will not rest until these hard-earned taxpayer dollars are returned to the U.S. Treasury,” he stated.
Zeldin went further, describing the grants as a questionable scheme, beset with possible conflicts of interest and fraudulent actions.
“Twenty billion of your tax dollars were parked at an outside financial institution, in a deliberate effort to limit government oversight — doling out your money through just eight pass-through, politically connected, unqualified and in some cases brand-new” nonprofit organizations, he claimed through a web-posted video.
In defense, Climate United rebutted that the government’s termination action was unjustified, arguing a lack of evidence supporting claims of financial misuse or fraudulent practice.
