Trump’s EPA Halts Billions in ‘Green Bank’ Funding: How Climate Groups Are Taking Action

In Washington, a nonprofit called Climate United Fund has filed a lawsuit against the Environmental Protection Agency (EPA), led by Donald Trump. They accuse the EPA of wrongly freezing a grant meant for clean energy projects. This grant is part of a $7 billion fund set up to support environmentally friendly initiatives.

Climate United Fund is a coalition of three nonprofits that received funding through the Greenhouse Gas Reduction Fund, implemented in 2022 under the Inflation Reduction Act. The group is now facing challenges as the frozen funds prevent them from making loans and even paying their workers.

In their court filing, Climate United argues that the actions of Citibank, which holds their funds, and the EPA essentially disregard the law that created this funding program.

Last year, then-Vice President Kamala Harris announced that the EPA had chosen eight organizations to receive funding to combat climate change and promote environmental justice. This funding was officially granted in August 2022.

While many Democrats support the Greenhouse Gas Reduction Fund, it has faced significant criticism from Republicans, who label it an “unaccountable slush fund.” Former EPA head Michael Regan has countered these claims.

The new EPA Administrator, Lee Zeldin, has targeted the green bank, suggesting that it should have its funding revoked. He referenced a video from a conservative journalist that implied the program was misusing government funds.

According to the lawsuit, Citibank froze Climate United’s access to their accounts on February 18, leaving the group in the dark about the reasons for this decision. This freeze coincided with Zeldin’s public statements criticizing the group and announcing the funding halt.

Several Democratic lawmakers responded strongly to Zeldin’s accusations, claiming that the Trump administration’s actions lacked evidence and were solely aimed at harming the program.

Citibank is currently reviewing the lawsuit. They stated that their role is strictly to manage funds and that they do not control which organizations receive grants. They assured they would comply with any court decisions.

The EPA has chosen not to comment on the ongoing lawsuit. Climate United has cited an incident where a former federal prosecutor resigned after refusing to freeze the group’s assets due to pressure from Trump officials.

In a letter to the EPA’s watchdog, Zeldin raised concerns about Citibank’s role in managing the funds, suggesting that the setup lacks transparency. He also questioned the qualifications of some groups overseeing grant distribution, hinting at potential political ties to Democratic figures.

In response, Climate United defended their process, claiming transparency in their funding efforts and stating that their application was thorough and publicly available.

Besides Climate United, other nonprofits like the Coalition for Green Capital and Opportunity Finance Network have also benefitted from the fund, collaborating with groups such as Habitat for Humanity.

Concerns about oversight of the green bank program have been voiced by the former EPA inspector general, highlighting the risks that rushed implementation could lead to misuse of funds. After Trump replaced the inspector general early this year, the new acting inspector general, Nicole Murley, is now examining the Greenhouse Gas Reduction Fund.