Climate nonprofit sues EPA, Citibank over $7b in frozen funds

By Aya El Sayed On Mar 9, 2025

Charging an electric drayage truck in Long Beach, Calif., in 2023. Last April, the E.P.A. announced a $7 billion award to the nonprofit Climate United to finance projects such as electric trucks, solar power and energy-efficient affordable housing.Credit...Mark Abramson for The New York Times

Environmental nonprofit Climate United Fund sued the US Environmental Protection Agency (EPA) and Citibank on Saturday, seeking access to $7 billion in frozen clean energy grants.

The lawsuit, filed in federal court in Washington, alleges that the EPA blocked Citibank from distributing funds approved under former President Joe Biden, harming renewable energy projects nationwide.

The funds were part of the $20 billion National Clean Investment Fund programme, which Climate United planned to use for solar energy, electric trucks, and energy-efficient housing.

The group accuses EPA Administrator Lee Zeldin, appointed by President Donald Trump, of halting disbursement. Zeldin previously called the funding approval by Biden officials “self-dealing” and compared it to “tossing gold bars off the Titanic.”

The lawsuit comes amid broader legal battles over Trump’s rollback of Biden-era policies. Last month, Trump administration officials instructed federal prosecutor Denise Cheung to launch a criminal probe into the funding. Cheung resigned, citing a lack of evidence.

Attribution: Reuters

Subediting: M. S. Salama