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The $20 Billion Controversy Over E.P.A. Climate Funds, Explained

Summary

The Trump administration is attempting to freeze or reclaim $20 billion in climate funds previously allocated by the Biden administration for green banks—institutions that finance clean energy projects in under served communities. EPA Administrator Lee Zeldin claims the funds were "parked" at Citibank without proper oversight, though the money was legally committed. The controversy escalated when a top Justice Department prosecutor, Denise Cheung, resigned after refusing to investigate the matter, citing insufficient evidence. Experts argue the funds were appropriately distributed to nonprofit grantees as part of the Greenhouse Gas Reduction Fund under the Inflation Reduction Act. If the administration succeeds in blocking the funds, over 200 planned projects, including solar farms and affordable housing initiatives, may be jeopardized. Legal challenges are expected, as delays could hinder long-term climate investment strategies. The move aligns with broader efforts by the administration to curtail federal climate programs.

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