A legal battle is brewing in Washington as Climate United Fund, an environmental nonprofit, takes the U.S. Environmental Protection Agency and Citibank to court over billions in frozen grants. The organization claims that the Trump administration’s aggressive spending cuts have blocked funding meant for solar energy, electric vehicles, and energy-efficient housing—money that had been approved under the Biden administration.
The lawsuit, filed in federal court, argues that the EPA deliberately prevented Citibank from distributing funds, causing harm to both the nonprofit and the communities relying on these investments. The dispute stems from the National Clean Investment Fund program, which Climate United was selected for last April. The program was designed to help everyday Americans save on energy costs, but the sudden freeze has left projects stalled.
EPA Administrator Lee Zeldin, a key figure in the funding controversy, dismissed Biden’s approval of the grants as reckless, comparing it to “tossing gold bars off the Titanic.” Meanwhile, the Trump administration’s push to investigate the funding took an unexpected turn when a federal prosecutor, Denise Cheung, resigned rather than launch a criminal probe, citing a lack of evidence.
Neither the EPA, Citibank, nor Climate United has provided further comment on the lawsuit. However, with billions at stake and the political battle over environmental funding intensifying, the case is set to be a major flashpoint in the ongoing war over U.S. climate policy.
