Trump administration suspends USD 20 billion in emissions reduction funding

The US Environmental Protection Agency (EPA) has frozen USD 20 billion in funding for greenhouse gas reduction projects, citing, among other things, concerns over potential fraud, waste, and abuse, news agencies reported. The move prompted a lawsuit by environmental NGO Climate United Fund, one of the beneficiaries of the program aimed at financing thousands of green energy and climate action projects.

The funding was appropriated by Congress under former President Joe Biden, but the new US administration, led by Donald Trump, decided to freeze it, the reports noted. The Greenhouse Gas Reduction Fund, commonly known as the green bank, was launched in 2022.

The green bank was launched under the Biden administration

In a statement, the EPA said that the Justice Department and the Federal Bureau of Investigation (FBI) were now reviewing the program. Lee Zeldin, the EPA’s new chief, said that “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,’” according to news agencies.

The EPA also said it would seek to use the green bank funds “with enhanced controls.”

Over the weekend, Climate United Fund, which had been awarded nearly USD 7 billion under the program to finance clean energy and climate-friendly projects, sued the EPA, demanding access to the funds.

Climate Action Fund had been awarded nearly USD 7 billion for thousands of projects

The organization also sued Citibank, though which the money was to be disbursed, for withholding the funds, according to reports.

In April 2024, it was announced that the EPA had selected eight recipients, including Climate United Fund, to be awarded a total of USD 20 billion in grants to finance tens of thousands of projects aimed at combating climate change and promoting environmental justice. The money was formally awarded in August.