EPA Administrator Lee Zeldin announced Tuesday evening that he has terminated $20 billion in climate change grants issued under the Inflation Reduction Act (IRA), escalating tensions over whether the Trump administration is overstepping congressional authority.
Zeldin, a staunch critic of the program, has repeatedly claimed—without evidence—that it was plagued by fraud and mismanagement. His decision comes just one day before a federal court hearing, where one grant recipient is suing to regain access to frozen funds held at Citibank.
Zeldin Defends Termination Over “Program Integrity” Concerns
In a video statement, Zeldin justified the cancellations by citing:
- Concerns over fraud, waste, and abuse.
- Objections to the grant award process.
- Misalignment with EPA’s priorities.
“The only way we can reduce waste, increase oversight, and uphold the law is by terminating these grants,” Zeldin said.
The Climate United Fund, which received a $7 billion grant, is one of the organizations suing the EPA to access funds it says were lawfully awarded under the Greenhouse Gas Reduction Fund (GGRF). In an EPA letter to Climate United, the agency expressed concerns over:
- Lack of adequate oversight.
- Speculative or improper fund allocation.
- Potential circumvention of EPA authority.
“EPA has determined that these deficiencies pose an unacceptable risk to taxpayer funds,” the letter stated.
Critics Accuse Trump Administration of Political Interference
Opposition lawmakers and environmental groups slammed the move, arguing that Zeldin’s decision is politically motivated.
Sen. Ed Markey (D-MA) accused the Trump administration of trying to kill the climate fund to appease the fossil fuel industry.
“Zeldin and Trump are spreading lies in a last-ditch effort to terminate the climate bank because the truth is it will help households save money and deploy clean energy—exactly what Big Oil fears,” Markey wrote on X (formerly Twitter).
Legal and Political Fallout Looms
The decision is expected to trigger a major legal battle.
- Judge Tanya Chutkan of the U.S. District Court for D.C. will hear arguments Wednesday from Climate United, which seeks a court order to force Citibank to release the funds.
- Two other grant recipients, Coalition for Green Capital and Power Forward Communities, also filed lawsuits this week.
EPA’s own statement acknowledged that it is still required by law to spend the GGRF money, but Zeldin indicated that it would be done under “enhanced controls” to ensure transparency and accountability.
What’s Next?
- Court ruling on Citibank funds: Climate United and other groups hope a judge will order Citibank to release the frozen money.
- Congressional fight: Republicans are expected to target GGRF funds for repeal, but for now, the program remains legally intact.
- Potential delays: If the court upholds the terminations, it could take years for a future administration to restart the program.
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