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

Coal fired power plant with two red/white smokestacks rising above a huge pile of coal, awaiting burning

Trump announces $700 million in funds meant to boost coal industry

The president announced a total of $700 million in federal money to reinvigorate the domestic coal industry, which has been in decline for decades.
Solar panels in foreground with wind turbines and a setting (or rising) sun in background

California and New York weaken climate rules as red states ramp up green energy

Republican-led states growing renewable capabilities at faster rate as Texas emerges as clean-energy leader.

illustration of large rechargeable lithium-ion battery energy storage stationary for renewable electric power station generation.
Credit: petovarga/BigStock Photo ID: 357758258

Why North Carolina’s electric co-ops are turning to grid batteries

From the suburbs to the barrier islands, the state’s local cooperatives are using aggregated battery systems to weather outages and protect consumers’ wallets.

Workers installing solar panels on a roof with palm trees in the background

Stuck on oil: Can Hawaii power itself?

Hawaii imports much of its fuel — and pays the price. From solar to geothermal, the state is searching for a way out of fossil fuel dependence.

An SUV parked in front of a restaurant on a sunny day

California’s Lithium Valley dreams meet reality at the only restaurant in town

How Vicky Hernandez and her customers at the Buckshot Deli & Diner in Niland view plans to turn Imperial Valley into a green energy hub.
Oil tankers at a terminal full of storage tanks

Oil industry warns Trump administration of price spikes within weeks

Industry executives said the loss of oil through the Strait of Hormuz is draining petroleum inventories to dangerously low levels.
A podcast microphone against a pink background
Credit: A. C./Unsplash+

NYT, WSJ podcasts promote pro-drilling ads by top US oil lobby

The New York Times has included dozens of ads pushing looser permitting rules on America’s third-most popular podcast since September, analysis finds.
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.