Despite the intentions of the United States Government, a federal judge has prohibited the cancellation of grants for climate projects.
This is a blow to the Environmental Protection Agency (EPA), which argues that the program through which the funds are granted is “riddled with financial mismanagement“.
Grants for climate projects must continue in the US
Federal judge Tanya Chutkan ruled in favor of the continuity of contracts for several non-profit organizations that were granted billions of dollars for the so-called “green bank”.
This entity was created to finance projects for clean and environmentally friendly energy. The court considered that they cannot be annulled, and that the organizations must have access to part of the frozen money.
This is a setback for the policies promoted by President Donald Trump, who argues that the program is under “financial mismanagement”.
The lawsuit
Chutkan’s decision on Tuesday night was in response to a lawsuit filed by the organization Climate United Fund, among others.
The accusation states that the EPA, administrator Lee Zeldin, and Citibank, which held the grant money, illegally blocked the funds granted last year. This action “put the organizations’ operations at risk”.
Chutkan stated that Citibank must provide the money owed to the non-profit organizations before the EPA froze their accounts in mid-February. It was also revealed that the EPA immediately appealed this ruling.
“It gives us a chance to breathe after the EPA, illegally and without due process, canceled the allocations and blocked access to funds stipulated by Congress and established by law,” said Beth Bafford, CEO of Climate United.
What is the “green bank”
The Greenhouse Gas Reduction Fund, commonly known as the “green bank”, was authorized by the 2022 Inflation Reduction Act. It was established during the term of former President Democrat Joe Biden.
Its goals are contrary to the Trump government’s stance on climate issues.
For this reason, as AP points out, Zeldin quickly targeted the bank. Thus, he characterized the $20 billion in grants as a “gold bar” scam. Additionally, he said it was tarnished by conflicts of interest and possible fraud.
A federal prosecutor resigned after being asked to open a criminal investigation, stating that there was not enough evidence to proceed. The FBI and the Department of the Treasury, in coordination with the EPA, pressured Citibank to freeze the grants, as confirmed by the non-profit organizations.
Trump administration policies.
Last month, Zeldin announced the cancellation of the grants. Chutkan halted that measure, stating that the government did not provide significant evidence of irregularities.
However, the Republican administration, in a recent document, claimed that they were allowed to cancel the contracts based on supervision concerns and changing priorities.
