Federal Judge Rules EPA Must Release $20 Billion Climate Grants

A federal judge has blocked the Environmental Protection Agency (EPA) from terminating billions in climate grants awarded under the Biden-era Greenhouse Gas Reduction Fund, finding the agency acted unlawfully when it froze funding to several nonprofits. The judge ruled that the EPA and Treasury Department could not impede Citibank from dispersing the funds, and that nonprofits must have access to money appropriated by Congress and already obligated. The EPA, now under Administrator Lee Zeldin, had argued the program was rife with misconduct, conflicts of interest, and potential fraud, but the court found there was no significant evidence to justify such claims. The program, established by the 2022 Inflation Reduction Act and commonly called the 'green bank,' was designed to finance clean energy and climate-friendly projects, particularly in underserved communities. The EPA immediately appealed the decision, but leaders of affected nonprofits welcomed the ruling, stating it allows them to resume their work investing in communities. The controversy highlights the deep political divide over climate policy, with the current administration seeking to halt grants authorized by its predecessor.