A far-left environmentalist group has launched legal action against the Trump administration and Citibank over withheld funds from a federal grant intended for climate and housing initiatives. Climate United, holding a $7 billion grant from the Environmental Protection Agency’s (EPA) Greenhouse Gas Reduction Fund, alleges it has not received the promised funds and has not been provided an explanation by either the EPA or Citibank.
The lawsuit, filed in the U.S. District Court for the District of Columbia, seeks an injunction to compel Citibank to release the funds and to prevent further interference by the EPA. The suit asserts that the EPA’s actions breach the Administrative Procedure Act, describing the fund suspension as arbitrary and an abuse of discretion. Additionally, it accuses EPA Administrator Lee Zeldin of violating the Fifth Amendment’s due process clause, claiming inadequate explanations were provided for the actions taken, and asserting the decision limited Climate United’s ability to contest the decision.
Mark Costiglio, a Citibank spokesperson, stated that the bank has been cooperating with federal authorities regarding the grant program. Costiglio emphasized that Citibank’s role as a financial agent does not include deciding grant distributions and affirmed the bank’s intention to comply with judicial outcomes.
The legal action comes amidst ongoing investigations by the Justice Department (DOJ) into Biden government climate grants. Reports indicate the department has summoned recipients to court for testimony later this month. The grant funds, valued at $7 billion, were designated for projects including electric vehicle charging infrastructure and renewable energy advancements.
The National Pulse previously reported that at least $2 billion in Biden EPA grants—parked with CitiBank—were awarded to a far-left group associated with Georgia gubernatorial election denier Stacey Abrams.