Climate United Sues EPA and Citibank Over Frozen Solar Funds.
An environmental nonprofit, Climate United, filed a lawsuit on Saturday against the U.S. Environmental Protection Agency (EPA) and Citibank, seeking billions in damages for solar and clean energy projects frozen by the bank under instructions from the Trump administration.
The Lawsuit and Allegations
The lawsuit, filed in federal court, alleges that the EPA acted to prevent Citibank from disbursing funds for projects approved under the Biden administration. These projects, including solar power, electric trucks, and energy-efficient housing, were part of the National Clean Investment Fund program.
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Climate United claims the freezing of funds has harmed their borrowers and the communities they serve. The group is seeking approximately $7 billion in damages, part of a larger $20 billion sum involved in the controversy.
Political Context Behind the Legal Battle
The lawsuit comes amidst a broader political battle between the Biden and Trump administrations. The Trump administration has sought to roll back policies enacted by Biden, particularly in relation to environmental funding and climate action. These efforts are part of Trump’s wider push to reduce federal spending and reshape the bureaucracy.
This is one of many cases filed by nonprofit groups and state attorneys general challenging the Trump administration's actions, many of which target environmental and social policies. Some of these cases have seen setbacks for the Trump administration, but it has also had some legal victories.
Key Figures and Disputes
The lawsuit also highlights Lee Zeldin, the EPA administrator under Trump, who publicly criticized the Biden administration's approval of the funding. Zeldin described the funding as “self-dealing” and suggested that the money was being recklessly distributed. Zeldin even compared it to "tossing 'gold bars off the Titanic" before leaving office.
In addition to the lawsuit, last month, Trump administration officials instructed federal prosecutor Denise Cheung to initiate a criminal investigation into the funding. However, Cheung resigned after claiming that there was insufficient evidence to support the request.
Climate United’s Mission and Response
Founded with the goal of fostering clean energy and climate-friendly projects, Climate United was selected to participate in the EPA’s National Clean Investment Fund program last April. The program was designed to lend money to developers across the U.S. to finance solar power, clean energy technologies, and affordable housing.
In its court filing, Climate United emphasized the importance of these projects for hard-working Americans. “This program was designed to save money for hard-working Americans who are struggling to pay for groceries and keep the lights on,” the nonprofit said in a statement. “We’re going to court for the communities we serve—not because we want to, but because we have to.”
Next Steps in the Legal Process
The case will proceed in federal court, with a further hearing expected to address any damages. The ruling in this case could set a significant precedent regarding the distribution of federal clean energy funds under the Biden administration.
The lawsuit filed by Climate United against the EPA and Citibank highlights the ongoing conflict between environmental progress and political agendas.
The freezing of critical solar funding approved under the Biden administration by the Trump-era EPA represents a significant roadblock for clean energy initiatives, affecting communities and developers relying on federal support.
While Climate United’s lawsuit seeks justice for these delays, it also raises broader concerns about the impact of political decisions on crucial climate projects. The outcome of this case could set a crucial precedent for future federal clean energy funding and policy continuity, regardless of political shifts.
Climate United is a national investment fund focused on addressing economic and environmental challenges across the U.S. Its mission is to eliminate financial barriers to clean technology, enabling communities to benefit from good-paying jobs, lower energy bills, and improved public health. The coalition behind Climate United comprises three expert organizations with extensive experience in deploying over $30 billion of private and institutional capital across all 50 states.
Climate United finances clean energy projects, with a focus on underserved areas like rural, tribal, and low-income communities. It supports a variety of projects, including solar energy, electric vehicles, and green buildings, driving demand for American-made clean technologies. By providing affordable financing, Climate United helps unlock economic opportunities while advancing U.S. energy independence and manufacturing.
