Judge rules against Trump admin after it couldn’t find evidence of fraud in clean energy program

 

President Donald Trump on April 14, 2025 in Washington, DC. 

A federal judge has blocked the Trump administration's attempt to terminate $14 billion in climate grants awarded under the Biden-era Greenhouse Gas Reduction Fund, citing a lack of evidence to support fraud claims.​AP News+8KCRA+8https://www.wsaz.com+8

Background

The Greenhouse Gas Reduction Fund, established by the 2022 Inflation Reduction Act, allocated $20 billion to support clean energy and climate-friendly projects. Three nonprofit organizations—Climate United Fund, the Coalition for Green Capital, and Power Forward Communities—were awarded a combined $14 billion to finance these initiatives.​AP News+3PBS: Public Broadcasting Service+3https://www.wsaz.com+3WJXT+6KCRA+6https://www.wsaz.com+6

Trump Administration's Actions

Upon taking office, the Trump administration, through EPA Administrator Lee Zeldin, accused the grant recipients of mismanagement and potential fraud. Zeldin characterized the grants as a "gold bar" scheme, alleging that funds were distributed to politically connected, unqualified, and in some cases, newly established nonprofits. Consequently, the EPA froze the grants and moved to terminate them, asserting that the awards were made in a manner that deliberately reduced the agency's ability to conduct proper oversight.​The Guardian+6KCRA+6Houston Chronicle+6KCRA+4https://www.wsaz.com+4DTN Pathfinder+4

Legal Challenge and Court Ruling

The nonprofits filed a lawsuit against the EPA, Zeldin, and Citibank (which held the funds), arguing that the termination lacked a legal basis and that no evidence of waste, fraud, or abuse had been presented. U.S. District Judge Tanya Chutkan ruled in favor of the plaintiffs, stating that the EPA's vague and unsubstantiated assertions were insufficient grounds for terminating the grants. She emphasized that the agency had not adequately explained why unilaterally ending the grants was a rational step in reviewing the program. The judge's order prevents the EPA from terminating the grants and blocks Citibank from transferring the funds to the government or any other entity.​WJXT+7https://www.wsaz.com+7PBS: Public Broadcasting Service+7AP News+3PBS: Public Broadcasting Service+3KCRA+3

Implications

This ruling underscores the judiciary's role in checking executive actions that may overstep legal boundaries. It also highlights the importance of evidence-based decision-making in the administration of federally funded programs. The case may proceed further, potentially influencing how future administrations handle similar grant programs.​politico.com+1AP News+1