A federal judge sided with eight nonprofits in a lawsuit against the Trump administration and Citibank, ordering the unfreezing of approximately $20 billion in clean energy funding. The funds, initially frozen by the EPA, were meant to support various projects such as solar energy installations and efficiency upgrades for small businesses.
The judge, Tanya Chutkan, found that the EPA had not presented any evidence of widespread fraud, waste, or abuse in the program, despite claims made by EPA Administrator Lee Zeldin. The administration's justification shifted from alleging wrongdoing to citing a change in policy.
The court also criticized the EPA's abrupt termination of the program without giving awardees proper notice, violating established procedures. While the EPA can still potentially shut down the program in the future, it must follow correct procedures and provide adequate notice.
Zeldin's claims originated from a video by Project Veritas, depicting a Biden-era EPA employee's remark. The funds stem from the 2022 Inflation Reduction Act and were intended for nonprofits in various states, including Republican-led ones. Projects include solar power for churches and refrigeration upgrades for small businesses.