A federal judge has blocked the Environmental Protection Agency from terminating $14 billion in grants awarded to three climate groups by the Biden administration. The judge ruled that the EPA’s allegations of fraud were insufficient, preventing the agency from ending the grant program totaling $20 billion. Citibank, which holds the money on behalf of the EPA, was also barred from transferring the funds to the government or anyone else. EPA Administrator Lee Zeldin claimed the grant recipients engaged in mismanagement, fraud, and self-dealing, but the judge found his allegations inadequate. The grant recipients, including Climate United, the Coalition for Green Capital, and Power Forward Communities, filed a lawsuit against the EPA, Zeldin, and Citibank, arguing that they were illegally denied access to the grants awarded through the Greenhouse Gas Reduction Fund.
The grant program, known as a “green bank,” was approved by Congress under the 2022 Inflation Reduction Act to support clean energy and climate-friendly projects. The frozen grants prevented the groups from funding new projects and could result in layoffs. The groups disputed the allegations of mishandling funds and requested the judge to order Citibank to unfreeze the account, but the judge declined, only preserving the status quo as the case moves forward. Climate United was awarded nearly $7 billion, the Coalition for Green Capital won $5 billion, and Power Forward Communities, linked to Democrat Stacey Abrams, was awarded $2 billion. The CEO of Climate United, Beth Bafford, expressed satisfaction with the judge’s ruling, calling it “a step in the right direction” and expressing a commitment to continuing to invest in projects that deliver energy savings, create jobs, and boost American manufacturing.
EPA Administrator Lee Zeldin has characterized the grants as a “gold bar” scheme involving conflicts of interest and potential fraud. Zeldin alleges that the grants were awarded in a manner that limited the EPA’s ability to conduct proper oversight. He has vowed to ensure that the taxpayer dollars are returned to the U.S. Treasury. Zeldin has accused the grant recipients of being politically connected, unqualified, and involved in potential fraud. Climate United has argued that the termination of the grants was unlawful, as the federal government failed to identify evidence of waste, fraud, or abuse.
In response to the judge’s ruling, the EPA and Zeldin have been prevented from terminating the grants or transferring the funds. The controversy surrounding the grant program highlights the challenges of funding clean energy and climate-friendly projects. The ongoing legal battle between the grant recipients, the EPA, and Citibank underscores the importance of transparency and accountability in the distribution of public funds. As the case moves forward, the fate of the $20 billion grant program remains uncertain, with implications for clean energy initiatives and environmental efforts.
