Bank accounts for $20B climate program frozen amid Trump administration scrutiny

The bank accounts of nonprofits administering a $20 billion climate program have been frozen as the program faces significant scrutiny from the Trump administration.

One grant recipient has confirmed to The Hill that their account with Citibank has been frozen in the wake of pressure from the administration. At least two others told E&E News, which first reported the freeze, that they were in the same boat.

The program in question, which is funded by the 2022 Inflation Reduction Act, provides $20 billion to help finance the deployment of climate-friendly projects.

Last year, the Biden administration awarded that cash to eight institutions that are in charge of doling it out to projects aimed at mitigating climate change.

Environmental Protection Agency (EPA) Administrator Lee Zeldin has been critical of the program, however, and at least some of those eight entities have had their accounts frozen in recent weeks.

A representative from one of the organizations told The Hill that their funds were originally frozen by Citi for a day after Zeldin voiced his criticism. The account was briefly unfrozen, but was made inaccessible again last week. The representative said that they have requested information from Citibank and the EPA, but have not received it as of Monday.

In the meantime, the organization does not have access to funds needed for their operations.

A spokesperson for Citibank declined to comment.

A spokesperson for the EPA directed The Hill to a recent video of Zeldin in which he indicated that he wanted to claw back funds for the program and said he would get the Justice Department involved.

"The financial agent agreement with the bank needs to be instantly terminated and the bank must immediately return all of the gold bars that the Biden Administration tossed off the Titanic,” Zeldin said in the video, which was posted online earlier this month.

“EPA needs to reassume responsibility for all of these funds. We will review every penny that has gone out the door,” he added.

The EPA chief also said in the video that he would work with the Justice Department on the matter.

Justice Department prosecutor Denise Cheung resigned last week after she was reportedly pressured to investigate the program and freeze its funding.

Zeldin has characterized the program as an example of wasteful government spending — and has argued that the money was rushed out the door.

However, the program’s supporters and grant recipients have pushed back on that narrative — noting that the funding was dispersed prior to the election and that the program is written into the law.

A group of Democratic senators on Monday wrote a letter to Zeldin criticizing his efforts to recoup the funding.

"Because there is no legal basis for the Environmental Protection Agency (EPA) to claw back these expended ... grants, and because doing so would destroy thousands of jobs and harm hundreds of communities across the country, we call on you to respect applicable legal authority, reconsider your decision, and ensure funding is available as the law requires," said the letter, which was spearheaded by Sen. Sheldon Whitehouse (D-R.I.).

"Your announcement is the latest example of the Trump Administration and its government efficiency 'experts' using unfounded claims of waste, fraud, and abuse as a smokescreen to ignore congressional spending authority and ignore court orders in order to freeze or terminate programs designed to reduce carbon pollution," it continued.

It also requested the agency provide additional information by March 3.

It’s not immediately clear how long the funds will be frozen for. Republicans could potentially try to repeal the provisions of the law establishing the program as well. However, if the money is no longer in the government’s hands, it’s also unclear how such an effort would play out in practice.

In the meantime, the representative who spoke with The Hill said that the grantee organization was weighing its legal options.

Topics

Bank accounts for $20B climate program frozen

Click for more from The Hill. {beacon} Energy & Environment Energy & Environment The Big Story Bank accounts for $20B climate program frozen The bank accounts of nonprofits administering a $20 ...
The Hill - 3h
Can UK banks stay the course on their climate pledges?

Lenders warn that slow government action may force a rethink
Financial Times - 14h
Acting ICE director reassigned amid Trump administration's frustration with deportation numbers

The Trump administration has removed Caleb Vitello, the acting director of Immigration and Customs Enforcement, from his position and reassigned him within the agency. NBC News' Julia Ainsley ...
NBC News - 3d
Trump administration pushes on with government cuts amid some signs of pushback

NBC News White House Correspondent Yamiche Alcindor and NBC News Capitol Hill Correspondent Melanie Zanona report on new firings in the federal government as some House Republicans are confronted ...
NBC News - 3d
USAID Climate Programs Fighting Extremism and Unrest Are Closing Down

Heat, drought and floods are growing security risks, Western defense officials say, feeding instability and violence that could prove costly in the long term.
The New York Times - 6d
Federal worker fired by Trump administration talks about losing her dream job amid major cuts

Katie Sandlin thought she landed her dream job at the NIH as an educator. She spent her life savings to move from Alabama to just outside Washington, D.C. After only a few weeks on the job, she was ...
CBS News - 3d
PBS and NPR on edge over FCC letter and Trump budget scrutiny

PBS President Paula Kerger has felt the heat from politicians over government funding before. But this time the FCC is focusing on the nonprofit's sponsorships.
Los Angeles Times - 3d
Outcry as Trump withdraws support for research that mentions ‘climate’

US government stripping funds from domestic and overseas research amid warnings for health and public safety. The Trump administration is stripping away support for scientific research in the US ...
The Guardian - 3d
Developing world urges rich nations to defy Trump’s ‘climate nihilism’

Poorer countries want rapid emission cuts and more financial help in face of US leader’s stance on global heating. Developing countries are calling on the rich world to defy the US president, ...
The Guardian - 5d