Washington, DC – A federal judge in Washington, DC has issued a ruling blocking the Trump administration from terminating $14 billion in grants awarded to three climate groups by the Biden administration. The judge deemed the government’s accusations of fraud as vague and unsubstantiated, preventing the Environmental Protection Agency (EPA) from halting the grant program totaling $20 billion.
The judge’s decision came after accusations from EPA Administrator Lee Zeldin of mismanagement, fraud, and self-dealing by the grant recipients led to the freezing of the grants. However, U.S. District Judge Tonya Chutkan found Zeldin’s allegations insufficient and ordered the grants to remain in place while the case proceeds.
Climate United Fund, along with other organizations, had filed a lawsuit against the EPA, Zeldin, and Citibank, claiming that the denial of access to the funds awarded through the Greenhouse Gas Reduction Fund was illegal. The grant program was established by the 2022 Inflation Reduction Act to support clean energy and climate-friendly projects.
Despite arguments from the EPA about the mishandling of funds, the groups maintained that the freeze not only hindered their ability to finance new projects but could also lead to layoffs. The judge’s ruling preserved the status quo and prevented Citibank from unfreezing the account at this time.
Climate United CEO Beth Bafford expressed optimism about the decision, calling it a step in the right direction. However, Zeldin reiterated his commitment to ensuring that taxpayer dollars are safeguarded and returned to the U.S. Treasury, referring to the grants as part of a scheme tainted by conflicts of interest and potential fraud.
According to Zeldin, the grants were parked at an outside financial institution to limit government oversight, distributing funds through politically connected non-profit organizations. Climate United argued that the termination of the grants was unlawful, emphasizing the lack of evidence of waste, fraud, or abuse by the federal government.
The ruling by Judge Chutkan is just one of three decisions on the same day against the Trump administration’s actions, marking a significant legal battle over environmental funding. The case will continue to unfold as the involved parties seek resolution in the ongoing dispute.