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 person working on a solar panel

Clean energy groups challenge NC Utilities Commission chair’s order to pause solar projects

Environmental groups are urging North Carolina regulators to resume Duke’s 2026 solar procurement, warning delays could raise power costs and slow clean energy.

A map showing the Gulf of Mexico

Something startling is happening in the Gulf of Mexico

The waters of the Gulf of Mexico are heating up twice as fast as the global oceans, with huge implications for hurricane risk.

A man pulling out his pants pockets to show that they're empty

Trump has created a climate opportunity

The American people have been led astray about what climate change means for their pocketbooks.
A white cross sitting on a green background

Oil pipelines align with Jesus, Danielle Smith tells Christian leaders

The Alberta, Canada premier gave a biblical justification for oil expansion at a Christian conference featuring Conservative MPs and provincial cabinet ministers.

An illustration of a house with geothermal energy leading to a heat pump

Wall Street is betting big on clean energy tech

Fervo Energy's IPO could raise $1.8 billion in one of the largest renewable energy public offerings ever, signaling growing investor confidence in clean energy.

A medical professional holding a tablet

What incentives could help healthcare limit its climate impact?

Healthcare contributes to nearly 9% of U.S. greenhouse gas emissions. What strategies can help the industry address its climate footprint?

Chinese-manufactured BYD EVs on display at new dealership in San Miguel de Allende, Mexico
Credit: Jim Germond/Environmental Health Sciences

Trump-Xi summit raises a terrifying prospect for US and Europe: Chinese cars

The question is when, not if, U.S. and European auto markets will open up to Chinese EV investment.
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.