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EPA chief Lee Zeldin defends freezing $20B in climate grants, citing alleged conflicts

U.S. Environmental Protection Agency Administrator Lee Zeldin on Monday defended his decision to halt $20 billion in climate funding, accusing media and courts of ignoring evidence of misconduct among grant recipients.

Jean Chemnick reports for E&E News.


In short:

  • Lee Zeldin accused nonprofit climate grantees of conflicts of interest, mismanagement, and being unqualified, and has moved to cancel their awards despite federal judges finding insufficient evidence of wrongdoing.
  • A D.C. federal judge ordered EPA and Citibank to temporarily release some frozen funds to the nonprofits, citing a lack of "adequate evidence" from the agency, but that order was quickly stayed pending appeal.
  • Six of the eight impacted nonprofits are suing the EPA, and a decision on whether they can access funds for ongoing work is expected soon from the appellate court.

Key quote:

“Agencies do not have unlimited authority to further a president’s agenda.”

— Judge Mary McElroy, U.S. District Court for Rhode Island

Why this matters:

The Greenhouse Gas Reduction Fund was created to support renewable energy and climate resilience projects, especially in underserved communities. Halting nearly $20 billion in grants delays critical efforts to transition to clean energy, improve public health, and reduce emissions. At stake are programs that provide low-cost financing for zero-emissions buildings and transportation — initiatives that could help shield communities from rising energy costs and climate impacts. The legal battles also expose how changes in federal leadership can disrupt multibillion-dollar programs, undermining the stability and continuity needed for long-term climate planning. With courts now weighing whether the EPA acted within its authority or overstepped, the outcome will shape how environmental policy is implemented and challenged in future administrations.

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