TL/DR –
Minnesota Attorney General Keith Ellison is co-leading a lawsuit against the Trump administration and Citibank for blocking congressionally approved funds for state projects to reduce greenhouse gases. The lawsuit alleges the Environmental Protection Agency (EPA) has pursued an illegal campaign to thwart the $20 billion appropriation that Congress made for the Minnesota Climate Innovation Finance Authority (MnCIFA) and other state green banks. The lawsuit also accuses Citibank, which holds the funds for the federal government, of improperly freezing funds that it is legally required to release.
Minnesota AG Coalition Sues Trump Administration Over Green Energy Funds
Minnesota Attorney General Keith Ellison has co-led a group of four attorneys general, launching a lawsuit against the Trump administration and Citibank for unlawfully blocking congressionally approved green energy funding. The legal action seeks to protect the flow of federal grants into Minnesota for clean-energy projects that aim to reduce greenhouse gases.
The lawsuit, on behalf of the Minnesota Climate Innovation Finance Authority (MnCIFA) — a state-created public “green bank” — is designed to stimulate the advancement of clean energy and carbon reduction projects. The coalition of states, including California, Illinois, and Maine, are each suing on behalf of their own public green banks.
“We are challenging this illegal power grab by the Trump administration. It disregards our Constitution and the rule of law,” stated Attorney General Ellison. “In 2022, the Inflation Reduction Act was passed, ensuring funds for clean-energy projects across the nation, including Minnesota.”
MnCIFA, established by the Minnesota Legislature in 2023, plays a significant role in Minnesota’s plan to achieve 100% carbon-free status by 2040 and net zero greenhouse gas emissions by 2050. Since early 2024, MnCIFA has been actively soliciting proposals from eligible projects.
The coalition alleges that since February 2025, the EPA has pursued an illegal campaign to thwart the $20 billion appropriation made by Congress. The lawsuit asserts that this campaign violates constitutional guarantees and flouts controls on federal agencies’ management of Congressional appropriations and finalized awards.
The coalition’s claim also accuses Citibank, which holds the EPA funds, of improperly adhering to an FBI request to freeze these funds. In response, on March 7, 2025, Ellison and the attorneys general of Colorado, Maine, Maryland, and New York sent a letter to Citibank, demanding the immediate release of the frozen funds.
The federal government’s campaign also attempted to seize the funds held by Citibank, leading to the resignation of a top DOJ prosecutor. The EPA subsequently terminated the grants to the primary recipients of the funding streams held by Citibank on March 11, 2025, without explanation.
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