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 group of birds flying under a large cracked iceberg

Outdoor guides confront the risks of a rapidly melting world

As glaciers melt in Western Canada at an alarming rate, outdoor guides are not only witnessing climate change, but managing the hazards.

A technician working on a heat pump installed on the side of a home

Solar panels and heat pumps are set to cost more in 2026 as tax credits expire

The end of key US tax credits for home solar, batteries and heat pumps — combined with new tariffs and domestic manufacturing rules — is expected to raise the cost of electrifying homes in 2026.

A silhouette of a power plant with billowing smoke and the sun in the background

Minnesota doesn't have an easy path to 100% carbon-free electricity

The state will need firm resources like nuclear, geothermal, hydropower or long-duration batteries — each with advantages and downsides.

A view of solar panels and wind turbines with mountains in the background

A year of clean energy milestones

Even as the Trump administration rolled back support for renewable energy in the U.S., wind, solar, and electric vehicles made huge strides globally in 2025.

An illustration showing people migrating with an image of a globe in the background

The biggest climate migration problem may be that there's not enough of it

In his new book, Julian Hattem explores how migration can be a climate solution, not just for those who move, but their home communities as well.

Yellow and white wind turbine towers waiting to be installed
Credit: Engineered Solutions/Unsplash

Offshore wind projects challenge Trump administration’s order to stop work

The developers of Revolution Wind off Rhode Island and Empire Wind off New York are the latest to sue the Trump administration.
data center construction
Credit: MaxSafaniuk/BigStock Photo ID: 438562529

‘Just an unbelievable amount of pollution’: how big a threat is AI to the climate?

Defenders say AI can do good to fight the climate crisis. But spiraling energy and water costs leave experts worried.

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.