In Washington, a nonprofit group called Climate United Fund has filed a lawsuit against a former Environmental Protection Agency (EPA) under Donald Trump. They claim the EPA wrongfully froze a grant that was meant to support clean energy projects. This grant, nearly $7 billion in total, was awarded as part of the Greenhouse Gas Reduction Fund established by the bipartisan Inflation Reduction Act in 2022.
Climate United, a coalition of three nonprofit organizations, argues that this freeze hinders their ability to provide loans and pay staff. They are pushing for access to funds that they say were legally allocated to them through a Citibank account. In their legal filing, they noted that the EPA and Citibank’s actions undermine a program backed by Congress.
Last April, Kamala Harris, then Vice President, announced that the EPA had chosen eight organizations, including Climate United, to distribute $20 billion for tens of thousands of projects focused on combating climate change and supporting environmental justice. However, the initiative has faced opposition from Republicans, who labeled the funding as a “slush fund.” Former EPA Administrator Michael Regan argued against these claims.
Lee Zeldin, the current EPA Administrator, publicly criticized the program after he took office in late January. He referred to it as wasteful, comparing it to “throwing gold bars off the Titanic.” Over time, he has made multiple accusations of misconduct against the organizations involved with the fund.
According to the lawsuit, Citibank blocked access to Climate United’s account on February 18, without any explanation for weeks. This freeze occurred while Zeldin was making public statements about alleged misconduct by Climate United, culminating in an announcement that funds were indeed frozen.
Several Democratic lawmakers condemned Zeldin’s attacks, stating they were unwarranted and harmful. They accused the Trump administration of launching a baseless investigation against the Greenhouse Gas Reduction Fund.
Citibank has stated that it is reviewing the lawsuit and emphasized that they are simply a financial agent and do not control which organizations receive funds. The EPA has not commented on the matter due to the ongoing litigation.
In their court documents, Climate United highlighted previous issues when a former prosecutor refused demands to freeze their assets during the Trump administration. Zeldin has raised questions about transparency regarding the fund’s allocation, suggesting that some of the organizations involved have ties to the Biden administration or Democratic figures.
Despite the controversies, the Greenhouse Gas Reduction Fund has also assisted other nonprofits like the Coalition for Green Capital and the Justice Climate Fund, which have partnered with various organizations to expand their reach and impact in fighting climate change.
Concerns over oversight of the fund have been raised. Former EPA Inspector General Sean O’Donnell pointed out that the swift rollout of the program and the large amount of funding available could lead to risks of fraud and waste. He was removed from his position early this year along with other inspectors general.
Currently, the situation remains fluid, and the outcome of the lawsuit could have significant implications for the future of climate funding and initiatives in the United States.
Check out this related article: How Climate Change Could Disrupt Earth’s Orbit: Surprising Findings from New Study
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