Judge stops Trump’s climate grant reductions
TL/DR –
A federal judge, Tonya Chutkan, has stopped the Trump administration from cancelling $14 billion in grants allocated to three environmental groups by the Biden administration, claiming that the administration’s allegations of fraud are insufficient. The grants, part of a $20 billion fund overseen by the Environmental Protection Agency (EPA) and held by Citibank, were frozen due to accusations of mismanagement and fraud by EPA Administrator Lee Zeldin. The three groups, Climate United Fund, the Coalition for Green Capital, and Power Forward Communities, had sued the EPA, Zeldin and Citibank for unlawful denial of their granted funds.
A Federal Judge Blocks Trump Administration From Terminating $14 Billion in Climate Grants
On Tuesday, a federal judge prohibited the Trump administration from ending $14 billion in climate change grants awarded by the Biden administration to Climate United Fund, Coalition for Green Capital, and Power Forward Communities. The judge declared the government’s allegations of fraud as insufficient and ungrounded.
U.S. District Judge Tonya Chutkan’s order safeguards, for the time being, the Environmental Protection Agency’s (EPA) grant program worth $20 billion in total. Furthermore, Citibank, holding the funds on behalf of the EPA, was banned from transferring the money to the government or any third party.
EPA Administrator Lee Zeldin accused the climate groups of mismanagement and fraud, leading to the freezing of the grants. However, after evaluating the case, Judge Chutkan found Zeldin’s allegations lacking substantial evidence.
The three climate organizations sued the EPA, Zeldin, and Citibank for denying them access to $14 billion awarded through the Greenhouse Gas Reduction Fund, also known as a “green bank.” This program, established by the 2022 Inflation Reduction Act, funds clean energy and climate-friendly projects.
The climate groups stated that the freeze not only hinders their ability to finance new clean energy projects, but it could also result in staff layoffs. They also refuted the allegations of mishandling funds as baseless.
Judge Chutkan, however, declined to command Citibank to unfreeze the account. Thus, the current situation remains unchanged as the case continues.
Republicans unanimously voted against the law creating the grant program, labelling it an uncontrolled “slush fund.” Following the freezing of the funds, the EPA sought to terminate the grants.
Climate United CEO Beth Bafford welcomed Judge Chutkan’s decision as a positive step. Bafford added that they would continue seeking a long-term solution enabling investments in projects yielding energy savings, job creation, and a boost in American manufacturing.
Zeldin critiqued the grants as a fraught scheme with conflicts of interest. He accused the government of parking $20 billion of taxpayer money with an external financial institution to limit governmental oversight and distribute funds through politically connected non-profit organizations.
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