WASHINGTON (AP) — A federal judge has halted the Trump administration’s attempt to cancel $14 billion in grants awarded to three climate organizations by the Biden administration, citing the government’s lack of evidence for allegations of fraud. The ruling by U.S. District Judge Tonya Chutkan temporarily prevents the Environmental Protection Agency (EPA) from terminating the $20 billion grant program and stops Citibank from transferring the funds to the government or other entities.
EPA Administrator Lee Zeldin accused the grant recipients of mismanagement, fraud, and self-dealing, leading to the freeze of the grants. However, Judge Chutkan found Zeldin’s claims to be insufficient and questioned the rationale behind abruptly ending the grant awards without proper review of the program.
The lawsuit was brought forth by Climate United Fund and other groups, challenging the EPA’s decision to withhold $14 billion from the Greenhouse Gas Reduction Fund established to support clean energy and climate projects. The organizations argued that the freeze not only hindered their ability to fund new initiatives but also put their staff at risk.
The judge’s order seeks to maintain the current state of the grants while the legal proceedings continue. Climate United CEO Beth Bafford expressed optimism following the ruling and emphasized the importance of investing in projects that benefit communities nationwide.
The EPA has not yet issued a statement in response to the court decision. Zeldin maintains that the grant program was fraught with conflicts of interest and potential fraud, describing it as a misuse of taxpayer dollars through politically connected nonprofit organizations.
The ongoing legal battle highlights the clash between the Trump administration’s efforts to nullify climate grants and the court’s scrutiny of the allegations against the grant recipients.
