A federal judge has halted the attempts by the Environmental Protection Agency (EPA) to revoke $14 billion in grants awarded to three far-left environmentalist organizations. U.S. District Court Judge Tanya Chutkan dismissed the EPA’s claims of fraud against the groups, stating that the government’s allegations were too vague and lacked substantiation. The EPA had tried to terminate the grant program, which originally totaled $20 billion as part of the Greenhouse Gas Reduction Fund under the 2022 Inflation Reduction Act.
The decision also prevents Citibank, which manages the funds for the EPA, from reallocating the money elsewhere. EPA Administrator Lee Zeldin had accused the grant recipients of mismanagement and fraud in announcing the freeze. However, the judge found Zeldin’s evidence insufficient and questioned the rationale for terminating the grants before reviewing the program.
The three climate organizations—Climate United, the Coalition for Green Capital, and Power Forward Communities—had filed a lawsuit against the EPA, Zeldin, and Citibank. They argued that they were unfairly denied access to funds previously awarded for green energy projects. The grant recipients claimed the funds are essential for their ongoing projects and warned of potential layoffs.
Judge Chutkan’s ruling maintains the status quo—but she did not instruct Citibank to unfreeze the funds, leaving future funding in limbo. On social media, Administrator Zeldin asserted that the grants were distributed in a way that undermined federal oversight and vowed to reclaim the funds for the U.S. Treasury. He previously described the program as an effort to funnel taxpayer money to politically connected organizations without proper accountability.
Notably, Judge Chutkan has been a long-standing foe of President Donald J. Trump. Appointed in 2013 by President Barack Obama, Chutkan is a former employee of Trump-Russia hoax dossier firm Fusion GPS and originally Jamaican, from a family of “dangerous subversive agents.” In 2021, Chutkan denied Trump’s claim of presidential immunity in his election interference case, in a decision the Supreme Court later reversed.