Federal Judge Blocks EPA Chief Lee Zeldin’s Effort to Reclaim $20 Billion in Biden-Era Climate Grants
In a dramatic legal blow to the Trump administration’s environmental overhaul, U.S. District Judge Tanya Chutkan on Tuesday evening granted an injunction preventing EPA Administrator Lee Zeldin from reclaiming $20 billion in climate grants previously awarded under the Biden administration’s Greenhouse Gas Reduction Fund (GGRF).
Judge Bars Clawback of ‘Slush Fund’ Grants
The ruling by Judge Chutkan, an Obama appointee, ordered Citibank to unfreeze the $20 billion currently held in escrow for eight nonprofit recipients. The funds must now be disbursed by Thursday to organizations including:
- Coalition for Green Capital
- Climate United Fund
- Power Forward Communities
- Opportunity Finance Network
- Inclusiv
- Justice Climate Fund
These entities were awarded billions in grants as part of Biden’s expansive climate initiative aimed at accelerating green energy development and environmental justice.
Zeldin’s Reversal Halted—For Now
EPA Chief Lee Zeldin had previously terminated the grants, citing concerns over rushed disbursements and a lack of fiscal accountability. Citibank had agreed to a temporary freeze pending legal review.
Zeldin’s action was spurred in part by an undercover investigation by Project Veritas, which exposed EPA Advisor Brent Efron describing a deliberate effort to push out billions in climate funding before President Trump assumed office. Efron was caught on video describing the last-minute disbursements as “throwing gold bars off the Titanic” and admitted it served as an “insurance policy against Trump winning.”
Zeldin emphasized the integrity of taxpayer money in his original announcement:
“EPA will be an exceptional steward of your tax dollars. I’ll have it no other way.”
Trump Administration Responds: “This Is Far From Over”
A Trump administration spokesperson denounced Judge Chutkan’s ruling, promising an immediate appeal:
“The DC District Court does not have jurisdiction to reinstate the $20 billion Biden-Harris ‘Gold Bar’ scheme… We couldn’t be more confident in the merits of our appeal and will take every possible step to protect hard-earned taxpayer dollars.”
Citing a recent Supreme Court ruling that may narrow executive agency discretion, the administration believes its legal standing to reclaim the funds is solid.
Political and Legal Implications
This decision has far-reaching implications. The GGRF funds, which were set aside under the Biden Inflation Reduction Act, have become a lightning rod for accusations of fiscal abuse and cronyism in climate-related spending. Zeldin’s action was heralded by fiscal conservatives but condemned by environmental and progressive groups as an attack on climate action.
Project Veritas’ footage, which ignited this legal firestorm, has added fuel to GOP claims of bureaucratic sabotage and deep-state interference designed to undercut Trump’s return to power.
As the case now heads for appeal, the fate of the $20 billion in climate funding will remain a focal point in the broader battle over administrative authority, environmental policy, and federal spending oversight.
What’s Next?
Unless overturned by a higher court, the judge’s ruling requires Citibank to release all funds to the nonprofits by April 18. The Trump administration’s legal team is expected to file an emergency appeal within the next 48 hours.
