- EPA terminates $20 billion in Biden-era climate grants tied to the green bankprogram
- Three nonprofits sue Citibank over frozen funds, allege operational paralysis
- Republicans label grants a slush fund,Democrats decry lawlessoverreach
The Environmental Protection Agency (EPA) has officially scrapped nearly $20 billion in climate grants established under President Biden’s Inflation Reduction Act, escalating a constitutional showdown between executive actions and congressional mandates. Administrator Lee Zeldin justified the termination by citing systemic risksin fund distribution through eight nonprofits, including allegations of improper financial oversight. This move comes as Climate United Fund, a Maryland-based recipient, warns of imminent layoffs and halted clean energy projects across rural Appalachia.
Industry analysts note the decision could delay 23,000 planned solar installations in Midwestern states and jeopardize public-private partnerships critical for grid modernization. A recent Brookings study suggests similar green funding models typically leverage $4 in private investment per federal dollar – implying potential $80 billion in stalled economic activity. The freeze particularly impacts Power Forward Communities’ initiative to retrofit 450,000 low-income homes with heat pumps, a program projected to cut utility bills by 40% in participating Ohio counties.
Legal experts highlight the unprecedented nature of revoking congressionally approved funds post-disbursement. Stanford Law’s Environmental Clinic director observes: This isn’t simply policy reversal – it’s testing boundaries of statutory authority.The lawsuits now hinge on whether EPA can retroactively void contracts absent concrete evidence of malfeasance.
Maryland’s clean energy sector, which saw 14% job growth since 2022, faces immediate contraction. Climate United’s stalled $7 billion allocation jeopardizes a Baltimore port electrification project set to reduce diesel emissions by 62%. Meanwhile, red states like Texas risk losing $3.2 billion in planned EV charging infrastructure despite having pre-approved matching funds.
As courts weigh in, 19 governors have petitioned Congress for emergency appropriations. The political fallout threatens to delay U.S. progress toward 2030 emissions targets, with international observers warning of diplomatic repercussions at November’s COP29 summit.