A nonprofit environmental group, Climate United Fund, has filed a lawsuit against the U.S. Environmental Protection Agency (EPA) and Citibank.
The lawsuit seeks to recover billions of dollars in frozen funds intended for solar and other clean energy projects. This move comes as the Trump administration continues to cut federal spending.
Climate United claims that the EPA’s actions have prevented Citibank from distributing the funds, which were approved by the Biden administration. This freeze affects not only Climate United but also its borrowers and the communities they serve.
This lawsuit is part of a broader legal battle against President Donald Trump’s efforts to reverse policies set by his predecessor, Joe Biden. Trump aims to reduce federal spending and reshape U.S. policies on immigration, foreign relations, and social issues. While Trump has faced setbacks in some cases, he has also secured legal victories.
Representatives from Climate United, Citibank, and the EPA did not immediately comment on the lawsuit, which was filed in federal court in Washington.
Climate United was chosen for the EPA’s National Clean Investment Fund program last April. The group planned to use the funds to lend to developers across the U.S., supporting projects like solar power, electric vehicles, and energy-efficient housing.
According to Climate United, this program was designed to help Americans struggling financially by reducing their energy costs.
The group stated, “We’re going to court for the communities we serve, not because we want to, but because we have to.” Climate United alleges it is owed about $7 billion, part of a $20 billion controversy involving EPA Administrator Lee Zeldin. Zeldin has criticized the funding as wasteful, comparing it to throwing away valuable resources.
Recently, Trump administration officials asked federal prosecutor Denise Cheung to start a criminal investigation into the funding. However, she resigned, citing a lack of evidence to support such an investigation.
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