Trump administration sued over frozen climate funds

A coalition that was awarded $7 billion for climate and housing projects has sued the Trump administration and Citibank, accusing them of unlawfully blocking access to the funds.

Gloria Gonzalez reports for POLITICO.


In short:

  • Climate United, a recipient of U.S. Environmental Protection Agency grants under the Greenhouse Gas Reduction Fund, filed suit to force Citibank to release the money and prevent the EPA from interfering.
  • The lawsuit argues the Trump administration is illegally withholding funds appropriated by Congress and violating contract law and the Constitution.
  • The EPA has criticized the fund as a “green slush fund,” but has not formally accused Climate United of misusing money or violating grant terms.

Key quote:

“EPA has failed to provide Climate United with a reasoned explanation for its actions or a meaningful opportunity to object or to be heard.”

— Climate United lawsuit

Why this matters:

The lawsuit highlights the ongoing battle over climate funding as the Trump administration seeks to undo Biden-era policies. The Greenhouse Gas Reduction Fund, the largest program in the 2022 Inflation Reduction Act, was designed to drive private investment in clean energy and infrastructure. Blocking these funds could stall renewable energy projects, slow efforts to cut emissions, and impact jobs in the green sector. The case also raises broader questions about an overreach of executive branch power in withholding congressionally approved funds.

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

 A closeup of a hand putting a seed into a tray full of soil

A network is racing to save the Midwest’s native seeds

As wildfires and extreme weather intensify, a coalition led by the Chicago Botanic Garden is working to shore up the Midwest’s dwindling supply of native seeds.

Four missiles under launch
Credit: SciePro/BigStock Photo ID: 75694495

Will Iran war send oil prices above $100 a barrel?

Oil markets are bracing for sharp price spikes after the US-Israel attacks on Iran and Tehran's retaliation. Iran's role as a major producer matters, but its strategic position is keeping traders on edge.
Kilowatt hour electric meter, power supply meter. 3d rendering
Credit: Sashkin/BigStock Photo ID:

Why electricity bills are so high — and how the blowback could hit Trump

As Democrats and climate activists seize on energy costs as a political issue, new data shows electricity rates rose 5 percent nationwide in 2025. The figures were much higher in some states.
Solar panels juxtaposed against transmission lines and wind turbines
Credit: kckate16/ BigStock Photo ID: 478351339

Why Katie Miller and other MAGA influencers suddenly love solar power

The Trump-led attack on solar eases as the right reckons with its crucial role in powering AI and keeping utility bills from spiraling.
Wildfire observers silhuouetted against glowing horizon
Credit: Caleb Cook on Unsplash

What emergency managers say they need more than ever

We heard from more than 40 current and former emergency managers in 11 states about what they need to prepare for the next disaster — and what they aren’t getting.
Black and white cows standing near a field with wind turbines in the background

Scientists fed biochar to cows. Here’s what happened

A new experiment shows biochar survives cow digestion largely intact, potentially turning cattle into a vehicle for spreading this carbon-stabilizing ingredient into the soil.
Soil Boring Boat aka survey vessel close to an oil platform in open ocean.
Credit: Jame Jones Jr/BigStock Photo ID: 240308320

Can nations agree how to mine the sea? This is the year, Leticia Carvalho says

The International Seabed Authority has been struggling to set rules for a decade. President Trump’s aggressive push on ocean mining makes her task more urgent.

From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.