Move sparks controversy as environmental groups accuse the administration of seizing clean energy funds

The Trump administration has officially ended $20 billion in funding for greenhouse gas reduction projects—a decision that climate advocates and Democrats argue illegally diverts money allocated for clean energy and transportation in disadvantaged communities.

EPA administrator spearheads fund rollback

Environmental Protection Agency (EPA) Administrator Lee Zeldin had previously announced his campaign to claw back funds from the Greenhouse Gas Reduction Fund, which was originally approved under the Biden administration to finance pollution reduction initiatives.

On Tuesday night, the EPA issued a statement confirming that the funds had been retracted. The agency justified its decision by claiming the program did not align with its priorities and raised concerns over potential fraud, waste, and abuse—though no specific details were provided.

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The statement added that the US Justice Department and the FBI have now launched a review of the program.

Future of funds remains unclear

While the EPA has promised to repurpose the funds with “enhanced controls,” it has not clarified how the money will be utilized.

“EPA will be an exceptional steward of taxpayer dollars dedicated to our core mission of protecting human health and the environment, not a frivolous spender in the name of ‘climate equity’,” Zeldin said.

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Congress-approved funding faces legal battles

The $20 billion fund was originally approved by Congress under the 2022 Inflation Reduction Act, signed by Democratic President Joe Biden. However, under the leadership of Republican President Donald Trump, the EPA has sought to freeze funding related to climate change and environmental justice amid ongoing legal challenges.

Climate group takes legal action

Over the weekend, the Climate United Fund—an environmental advocacy group—filed a lawsuit against both the EPA and Citibank, accusing them of withholding funds and violating what the group calls a legally binding contractual agreement.

The lawsuit claims that the Climate United Fund and seven other recipients have been unable to access the awarded funds due to the administration’s actions.

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