The White House in Washington DC

Nonprofits still blocked from $20 billion in climate funds amid investigations

Nonprofits expecting $20 billion in federal climate funding remain unable to access their accounts after the Trump administration launched investigations, despite a prosecutor’s determination that there was no evidence of wrongdoing.

Lisa Friedman, Claire Brown, and Charlie Savage report for The New York Times.


In short:

  • The Environmental Protection Agency (EPA) and federal investigators froze bank accounts holding $20 billion designated for climate initiatives, citing concerns over potential fraud.
  • Citibank, which manages the funds, acted under federal direction but stated it has no discretion over grant distribution; no evidence has been presented to justify a criminal probe.
  • The funding freeze has left climate nonprofits struggling to meet payroll and could jeopardize projects aimed at reducing fossil fuel emissions, particularly in low-income communities.

Key quote:

“These relationships take many months to build and are in jeopardy if funding freezes continue.”

— Brooke Durham, Climate United spokesperson

Why this matters:

The blocked funds were part of the Inflation Reduction Act’s Greenhouse Gas Reduction Fund, intended to support clean energy projects nationwide. Many of these initiatives focus on underserved communities, aiming to cut pollution and expand renewable energy. The Trump administration’s efforts to halt the disbursement — without clear evidence of misconduct — raise concerns about political interference in climate policy and overstepping of presidential authority. A prolonged freeze could disrupt crucial emissions reduction projects and undermine trust in federally backed green financing.

Read more: EPA seeks probe into management of $20 billion climate fund

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