Federal judge temporarily blocks EPA from terminating $14B in climate grants

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Lauren Taylor Anchor/Reporter

By Lauren Taylor (Anchor/Reporter), Jake Larsen (Video Editor)

A federal judge has issued a temporary restraining order blocking the EPA from ending nearly $14 billion in grants to climate groups under the Biden administration. The money, reportedly “parked” in Citibank, is being investigated by EPA Administrator Lee Zeldin.
The grants, awarded to Climate United, Coalition for Green Capital, and Power Forward Communities, were halted after an investigation into oversight of the funds.
The groups had sought to unfreeze the funds, but the judge declined.

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A federal judge has issued a temporary restraining order, blocking the Environmental Protection Agency (EPA) from terminating nearly $14 billion in grants awarded to climate groups under the Biden administration.

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Last month, EPA Administrator Lee Zeldin vowed an investigation into the Biden administration’s handling of $20 billion that he said was “parked” at a bank, which has been revealed to be Citibank.

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The announcement came after an undercover reporter with Project Veritas posted a video of a Biden administration EPA adviser admitting the agency was attempting to allocate the funds quickly before Trump’s inauguration.

What did the EPA do that was blocked?

Zeldin terminated $14 billion in grants awarded to three climate groups: $6.97 billion to Climate United, $5 billion to Coalition for Green Capital and $2 billion to Power Forward Communities, Inc.

According to Judge Chutkan’s order, in mid-February, the groups attempted to withdraw the grant funds from Citibank.

The climate groups sued the EPA, Zeldin, as well as Citibank, and sought a temporary restraining order, claiming Citibank violated “its legal and contractual obligations to disburse grant money owed to plaintiffs.”

What did the judge say?

“Based on the parties’ briefing, oral argument and the record, the court finds that plaintiffs have carried their burden of showing that they will suffer imminent, irreparable harm absent a temporary restraining order,” Judge Chutkan wrote in her ruling.

She added that the EPA “must take certain procedural steps before it can terminate federal awards.”

The groups also asked the judge to unfreeze the funds, which Judge Chutkan declined.

In response to the order, Climate United CEO Beth Cafford said in a statement:

“Today’s decision is a strong step in the right direction. In the coming weeks, we will continue working towards a long-term solution that will allow us to invest in projects that deliver energy savings, create jobs, and boost American manufacturing in communities across the country.”

How did the EPA respond?

EPA Administrator Zeldin said in part, “I will not rest until these hard-earned taxpayer dollars are returned to the U.S. Treasury. Every penny EPA spends will go towards our core mission of protecting human health and the environment, and powering the great American comeback.”

Tags: CitiGroup, EPA, federal judge, Joe Biden, Lawsuit, Lee Zeldin

[Lauren Taylor]

A FEDERAL JUDGE ISSUED A TEMPORARY RESTRAINING ORDER, BLOCKING THE ENVIRONMENTAL PROTECTION AGENCY FROM TERMINATING NEARLY $14 BILLION DOLLARS IN GRANTS AWARED TO CLIMATE GROUPS UNDER THE BIDEN ADMINISTRATION.

LAST MONTH, EPA ADMINISTRATOR LEE ZELDIN VOWED AN INVESTIGATION INTO THE BIDEN ADMINISTRATION’S HANDING OF $20 BILLION DOLLARS HE SAID WAS “PARKED” AT A BANK. WE’RE LEARNED THAT BANK IS CITIBANK.

THE ANNOUNCEMENT CAME AFTER AN UNDERCOVER REPORTER WITH PROJECT VERITAS POSTED A VIDEO OF A BIDEN ADMINISTRATION EPA ADVISOR ADMITTING THE AGENCY WAS ATTEMPTING TO ALLOCATE THE FUNDS QUICKLY BEFORE TRUMP’S INAUGURATION.

ZELDIN TERMINATED $14 BILLION IN GRANTS AWARDED TO THREE CLIMATE GROUPS: $6.97B TO CLIMATE UNITED, $5B TO COALITION FOR GREEN CAPITAL, AND $2B TO POWER FORWARD COMMUNITIES, INC..

ACCORDING TO THE JUDGE CHUTKAN’S ORDER, IN MID-FEBRUARY, THE GROUPS ATTEMPTED TO WITHDRAW THE GRANT FUNDS FROM CITIBANK.

THE CLIMATE GROUPS SUED THE EPA, ZELDIN AS WELL AS CITIBANK AND SOUGHT A TEMPORARY RESTRAINING ORDER SAYING CITIBANK VIOLATED “ITS LEGAL AND CONTRACTUAL OBLIGATIONS TO DISBURSE GRANT MONEY OWED TO PLAINTIFFS.”

“BASED ON THE PARTIES’ BRIEFING, ORAL ARGUMENT, AND THE RECORD, THE COURT FINDS THAT PLAINTIFFS HAVE CARRIED THEIR BURDEN OF SHOWING THAT THEY WILL SUFFER IMMINENT, IRREPARABLE HARM ABSENT A TEMPORARY RESTRAINING ORDER,” JUDGE CHUTKAN WROTE IN HER RULING.

ADDING THE EPA “MUST TAKE CERTAIN PROCEDURAL STEPS BEFORE IT CAN TERMINATE FEDERAL AWARDS.”

THE GROUPS ALSO ASKED THE JUDGE TO UNFREEZE THE FUNDS WHICH JUDGE CHUTKAN DECLINED.

IN RESPONSE TO THE ORDER, CLIMATE UNITED CEO BETH CAFFORD SAID IN A STATEMENT:

“TODAY’S DECISION IS A STRONG STEP IN THE RIGHT DIRECTION. IN THE COMING WEEKS, WE WILL CONTINUE WORKING TOWARDS A LONG-TERM SOLUTION THAT WILL ALLOW US TO INVEST IN PROJECTS THAT DELIVER ENERGY SAVINGS, CREATE JOBS, AND BOOST AMERICAN MANUFACTURING IN COMMUNITIES ACROSS THE COUNTRY.”

EPA ADMINISTRATOR ZELDIN SAID IN PART: “I WILL NOT REST UNTIL THESE HARD-EARNED TAXPAYER DOLLARS ARE RETURNED TO THE U.S. TREASURY. EVERY PENNY EPA SPENDS WILL GO TOWARDS OUR CORE MISSION OF PROTECTING HUMAN HEALTH AND THE ENVIRONMENT, AND POWERING THE GREAT AMERICAN COMEBACK.”