The Trump administration has frozen the bank accounts of nonprofits managing a $20 billion climate program funded by the 2022 Inflation Reduction Act, halting green projects as EPA Chief Lee Zeldin targets what he calls wasteful spending. The move, sparking outrage from grant recipients and legal threats, underscores a broader push to gut Biden-era climate initiatives.
At a glance:
- $20 billion climate program accounts frozen after Trump administration pressure.
- EPA’s Lee Zeldin aims to claw back funds, slamming Biden’s rushed cash dump.
- Nonprofits report Citibank blocks, leaving operations in limbo.
- Democrats blast the freeze as illegal; recipients weigh lawsuits.
Funds Locked Amid Scrutiny
Bank accounts tied to a $20 billion climate program, established under the 2022 Inflation Reduction Act, are now inaccessible, with at least three of eight nonprofits confirming Citibank freezes. The Biden administration awarded the cash last year to finance climate-friendly projects, but Zeldin has slammed it as a boondoggle, vowing to reclaim every penny. One grantee told The Hill their account was locked for a day after Zeldin’s initial criticism, briefly reopened, then frozen again last week. They’ve sought answers from Citibank and the EPA without success, leaving operational funds out of reach. Citibank declined comment, while an EPA spokesperson pointed to Zeldin’s video rant, where he demanded, “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, in that video posted earlier this month, called for Justice Department action, arguing the money was “rushed out the door” wastefully. A Justice prosecutor resigned last week after reported pressure to probe and freeze the funds, hinting at internal pushback. The EPA Chief insists the agency must reassume control to audit every dollar spent, a stance that’s crippled the program’s rollout.
Pushback and Legal Limbo
Grantees and supporters counter that the funds, dispersed pre-election and enshrined in law, can’t legally be clawed back. A group of Democratic senators, led by Sheldon Whitehouse, fired off a letter Monday, accusing Zeldin of ignoring congressional authority and court orders. They warned the freeze “would destroy thousands of jobs and harm hundreds of communities,” demanding details by March 3. The grantee speaking to The Hill hinted at legal options, signaling a fight looms. Republicans might push to repeal the program’s provisions, but with cash already out the door, that’s a murky prospect. For now, the freeze stalls a key climate effort, spotlighting Trump’s war on what he sees as green excess.
