District court judge blocks Trump administration from freezing $14 billion in Biden-era funding to three climate organizations.
The ruling was made by District Court Judge Tonya Chutkan on March 18. The judge said the federal agency's "vague allegations of fraud" were not supported.
The order prevents the EPA from ending $14 billion in climate financing to three organizations — the Alliance for Green Capital, Climate United and Power Forward Communities — that was part of a $20 billion financing initiative, often referred to as a “green bank,” from the Greenhouse Gas Reduction Fund.
The money was awarded last year and was scheduled to be disbursed on March 11, but the Trump administration's EPA abruptly froze it and wants to withdraw it. Lee Zeldin, the head of the US Environmental Protection Agency, has likened Biden's climate spending to "throwing gold off the Titanic."
Mr. Lee Zeldin at the new cabinet confirmation hearing on Capitol Hill, Washington, January 16. Photo: AP
The three organizations sued the EPA, Zeldin, and Citibank (which holds the money on behalf of the EPA), arguing that they were illegally denied access to the $14 billion in funds. The freeze on funding meant they could not fund new projects and could have to lay off staff.
In mid-February, EPA Administrator Lee Zeldin announced that he would freeze the accounts and end funding under the “green bank” program. He accused the group receiving climate funding of mismanagement and fraud. However, Judge Chutkan ruled that Zeldin’s claims were not sufficient.
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The judge also blocked Citibank, which holds the money on behalf of the EPA, from transferring it to the government or anyone else.
After the ruling, Zeldin said on social media X that the grants were awarded in a way that intentionally undermined the EPA's oversight capabilities. He added that he "will not rest until the taxpayers' hard-earned dollars are returned to the US Treasury."
District courts are the general jurisdiction of the US federal court system. A case decided by a district court can be appealed to a court of appeals.