Judge Blocks Trump From Ending $14B Climate Grants

Judge Blocks Trump From Ending $14B Climate Grants \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ A federal judge blocked the Trump administration from terminating $14 billion in climate grants awarded by the Biden administration. The ruling preserves funding for three climate groups accused by the EPA of fraud and mismanagement. The court found the government’s claims vague and unsubstantiated as the legal battle continues.

Judge Blocks Trump From Ending $14B Climate Grants — Quick Looks

• Judge Tonya Chutkan halted the Trump administration’s termination of $14 billion in climate grants.
• The grants, part of a $20 billion program, fund clean energy and climate initiatives.
• The EPA accused recipients of fraud and mismanagement without sufficient evidence.
• Citibank, holding the funds, is blocked from transferring the money.
• Climate United Fund, Coalition for Green Capital, and Power Forward Communities are key recipients.
• Climate United CEO called the ruling a positive step for ongoing investments.
• Republicans have criticized the Greenhouse Gas Reduction Fund as a “slush fund.”
• The freeze could have led to layoffs and stalled clean energy projects.
• Judge Chutkan declined to order Citibank to unfreeze accounts but preserved the status quo.
• EPA Administrator Lee Zeldin accused the program of conflicts of interest in an online video.

Deep Look

A federal judge on Tuesday delivered a major setback to the Trump administration’s efforts to claw back billions of dollars in climate grants awarded under the Biden administration. U.S. District Judge Tonya Chutkan issued a ruling blocking the Environmental Protection Agency from terminating $14 billion in grants from the Greenhouse Gas Reduction Fund, which was established by the 2022 Inflation Reduction Act to finance clean energy and climate-friendly projects nationwide.

The case stems from accusations by EPA Administrator Lee Zeldin, who alleged mismanagement, fraud, and self-dealing among the nonprofit groups that received the massive grants. Despite these claims, Judge Chutkan found that the government’s arguments lacked substance. “At this juncture, EPA Defendants have not sufficiently explained why unilaterally terminating Plaintiffs’ grant awards was a rational precursor to reviewing” the program, Chutkan wrote in her decision.

The ruling prevents the EPA from moving forward with its effort to terminate the grants and also blocks Citibank — which holds the funds on behalf of the EPA — from transferring the money to any other entity. The court’s order preserves the current state of affairs while the case is litigated, though Chutkan stopped short of ordering Citibank to unfreeze the funds.

The lawsuit was brought by Climate United Fund, the Coalition for Green Capital, and Power Forward Communities. Together, these three groups were awarded a combined $14 billion — with Climate United receiving nearly $7 billion, the Coalition for Green Capital awarded $5 billion, and Power Forward Communities securing $2 billion. These funds are earmarked for clean energy investments, job creation, and emissions reduction initiatives in communities across the country.

In court filings and public statements, the nonprofits vehemently denied allegations of mishandling funds, calling the accusations meritless. They warned that freezing the grants not only jeopardized critical climate projects but could also result in staff layoffs and halted progress on renewable energy financing.

Climate United CEO Beth Bafford applauded the ruling, calling it “a step in the right direction.” She emphasized the organization’s commitment to “investing in projects that deliver energy savings, create jobs, and boost American manufacturing in communities across the country.”

The case represents a flashpoint in the broader political battle over the Biden administration’s climate policies. The Greenhouse Gas Reduction Fund was a key component of the Inflation Reduction Act, which passed Congress without a single Republican vote. GOP lawmakers have repeatedly slammed the program as an unaccountable “slush fund,” claiming it lacks sufficient oversight and funnels taxpayer dollars to politically connected nonprofits.

Zeldin doubled down on those criticisms in a video posted online, calling the grants a “gold bar” scheme riddled with conflicts of interest. He alleged that $20 billion of taxpayer funds had been “parked at an outside financial institution in a deliberate effort to limit government oversight,” and criticized the money being funneled through what he called “politically connected, unqualified, and in some cases brand-new” nonprofit organizations.

The EPA’s move to freeze and terminate the grants was part of a broader effort by the Trump administration to reevaluate and possibly dismantle several climate-related initiatives launched under the Biden administration. However, the judge’s decision on Tuesday marked the third ruling of the day against the Trump administration, showcasing a growing judicial pushback against abrupt policy reversals.

The conflict also spilled into an unusual judicial drama earlier on Tuesday when President Trump called for the impeachment of a federal judge who had temporarily blocked deportation flights. That extraordinary call prompted a rare public rebuke from Supreme Court Chief Justice John Roberts, who defended the independence of the judiciary.

While the EPA has yet to comment on Judge Chutkan’s ruling, the agency is expected to continue its legal battle to regain control of the grant funds. In the meantime, climate organizations and clean energy advocates are cautiously optimistic that the ruling will protect essential climate investments, at least for now.

As the legal battle continues, the case could have broader implications for the future of climate policy and federal grant administration. For now, the ruling ensures that billions of dollars dedicated to combating climate change remain in place, as the nonprofits fight to maintain their funding and continue their work.

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