Climate group files lawsuit opposing Trump's freeze
The lawsuit marks the latest move in an ongoing conflict with the Trump administration regarding the agency's Greenhouse Gas Reduction Fund.
TroibNews 
A coalition of organizations that secured $7 billion in federal funds for climate and housing initiatives has filed a lawsuit against the Trump administration and Citibank to regain access to the financial aid.
Climate United alleges that it has been unable to access the funds from the Environmental Protection Agency’s Greenhouse Gas Reduction Fund and has not received any clarification from either the EPA or Citibank, which is overseeing $20 billion in grant allocations in collaboration with the federal government.
The legal action seeks court orders requiring Citibank to release the funds and preventing the EPA from obstructing the funding process.
This lawsuit marks another chapter in the ongoing conflict surrounding the Trump administration's attempts to reclaim congressionally allocated funds and dismantle the climate policies set by former President Joe Biden. The Greenhouse Gas Reduction Fund, a major element of the Democrats’ 2022 climate legislation, the Inflation Reduction Act, has become a focal point for this dispute.
The complaint, submitted to the U.S. District Court for the District of Columbia, argues that the EPA and Citibank are illegally withholding the funds, mirroring allegations from Democrats that former President Trump’s actions to withhold already allocated and obligated funds breach both contract law and constitutional provisions.
PMG reported earlier that the Justice Department is currently investigating the climate grants and has mandated recipients to testify in federal court later this month. Additionally, a senior federal prosecutor in Washington resigned last month after claiming that her superiors pressured her into launching a criminal investigation into the funding without adequate evidence.
Representatives for the EPA were not immediately available for comment regarding the lawsuit, while Citibank spokesperson Mark Costiglio indicated that the bank is reviewing the legal complaint.
The lawsuit claims that the EPA has violated the Administrative Procedure Act, describing the agency’s suspension or termination of the grant as arbitrary, capricious, an abuse of discretion, or unlawful. It further alleges that EPA and Administrator Lee Zeldin breached the Fifth Amendment’s due process clause, citing numerous public remarks by Zeldin that criticized the climate initiative and expressed his intention to halt its funding.
Zeldin has labeled the climate initiative a “green slush fund” and accused the Biden administration of attempting to bypass oversight by hastily distributing the money before Trump assumed office. Trump himself commented on the issue during his address to Congress, highlighting a specific aspect of the Greenhouse Gas Reduction Fund as an example of “appalling waste.”
According to the lawsuit, the EPA has not produced any formal determination indicating that Climate United has breached the terms of its grant agreement or presented evidence of waste, fraud, or abuse.
“EPA has failed to provide Climate United with a reasoned explanation for its actions or a meaningful opportunity to object or to be heard,” the suit states.
The complaint also accuses Citibank of breaching its contract for not disbursing the grant funds. It asserts that Citibank did not fulfill Climate United's requests to access the funds on February 18 and February 21, providing “no legal or factual basis” for denying these and subsequent disbursement requests.
Costiglio stated that Citibank “has been working with the federal government in its efforts to address government officials' concerns regarding this federal grant program. Our role as financial agent does not involve any discretion over which organizations receive grant funds. Citi will of course comply with any judicial decision.”
The $7 billion in question is intended to support electric vehicle charging infrastructure, energy-efficient home construction, and renewable energy initiatives.
Climate United has indicated that it lacks alternative funding sources to offset the frozen money, asserting that private investments are not a feasible substitute as the objective of the program was to leverage public funds to attract investment to areas typically overlooked by the private sector. The coalition warned that it has already had to delay employee compensation to manage cash flow, will soon exhaust funds for operational expenses without additional resources, and may need to reduce hours or furlough staff.
"Climate United’s access to its grant funding should be restored," the organization stated in its lawsuit.
Zack Colman contributed to this report.
Mark B Thomas for TROIB News
Climate United alleges that it has been unable to access the funds from the Environmental Protection Agency’s Greenhouse Gas Reduction Fund and has not received any clarification from either the EPA or Citibank, which is overseeing $20 billion in grant allocations in collaboration with the federal government.
The legal action seeks court orders requiring Citibank to release the funds and preventing the EPA from obstructing the funding process.
This lawsuit marks another chapter in the ongoing conflict surrounding the Trump administration's attempts to reclaim congressionally allocated funds and dismantle the climate policies set by former President Joe Biden. The Greenhouse Gas Reduction Fund, a major element of the Democrats’ 2022 climate legislation, the Inflation Reduction Act, has become a focal point for this dispute.
The complaint, submitted to the U.S. District Court for the District of Columbia, argues that the EPA and Citibank are illegally withholding the funds, mirroring allegations from Democrats that former President Trump’s actions to withhold already allocated and obligated funds breach both contract law and constitutional provisions.
PMG reported earlier that the Justice Department is currently investigating the climate grants and has mandated recipients to testify in federal court later this month. Additionally, a senior federal prosecutor in Washington resigned last month after claiming that her superiors pressured her into launching a criminal investigation into the funding without adequate evidence.
Representatives for the EPA were not immediately available for comment regarding the lawsuit, while Citibank spokesperson Mark Costiglio indicated that the bank is reviewing the legal complaint.
The lawsuit claims that the EPA has violated the Administrative Procedure Act, describing the agency’s suspension or termination of the grant as arbitrary, capricious, an abuse of discretion, or unlawful. It further alleges that EPA and Administrator Lee Zeldin breached the Fifth Amendment’s due process clause, citing numerous public remarks by Zeldin that criticized the climate initiative and expressed his intention to halt its funding.
Zeldin has labeled the climate initiative a “green slush fund” and accused the Biden administration of attempting to bypass oversight by hastily distributing the money before Trump assumed office. Trump himself commented on the issue during his address to Congress, highlighting a specific aspect of the Greenhouse Gas Reduction Fund as an example of “appalling waste.”
According to the lawsuit, the EPA has not produced any formal determination indicating that Climate United has breached the terms of its grant agreement or presented evidence of waste, fraud, or abuse.
“EPA has failed to provide Climate United with a reasoned explanation for its actions or a meaningful opportunity to object or to be heard,” the suit states.
The complaint also accuses Citibank of breaching its contract for not disbursing the grant funds. It asserts that Citibank did not fulfill Climate United's requests to access the funds on February 18 and February 21, providing “no legal or factual basis” for denying these and subsequent disbursement requests.
Costiglio stated that Citibank “has been working with the federal government in its efforts to address government officials' concerns regarding this federal grant program. Our role as financial agent does not involve any discretion over which organizations receive grant funds. Citi will of course comply with any judicial decision.”
The $7 billion in question is intended to support electric vehicle charging infrastructure, energy-efficient home construction, and renewable energy initiatives.
Climate United has indicated that it lacks alternative funding sources to offset the frozen money, asserting that private investments are not a feasible substitute as the objective of the program was to leverage public funds to attract investment to areas typically overlooked by the private sector. The coalition warned that it has already had to delay employee compensation to manage cash flow, will soon exhaust funds for operational expenses without additional resources, and may need to reduce hours or furlough staff.
"Climate United’s access to its grant funding should be restored," the organization stated in its lawsuit.
Zack Colman contributed to this report.
Mark B Thomas for TROIB News
