Billions of dollars in funding for critical US projects at stake in new legal battle: 'Not because we want to, but because we have to'

A nonprofit that helps get clean energy projects off the ground is suing the Environmental Protection Agency and Citibank, claiming that billions in approved funding has been unfairly blocked. 

The freeze is halting solar initiatives, electric vehicles, and energy-efficiency efforts in communities that were counting on the support.

What's happening?

Climate United Fund, a nonprofit dedicated to financing clean energy projects in underserved communities, filed a lawsuit on March 8, Reuters reported. The suit alleges that the EPA and Citibank halted the distribution of $7 billion in funding that had been approved under the previous United States presidential administration's National Clean Investment Fund. 

The money came from $20 billion set aside through the Greenhouse Gas Reduction Fund, which was launched as part of the Inflation Reduction Act. Climate United planned to use its share to help developers roll out rooftop solar, electric trucks, and energy-saving improvements in lower-income neighborhoods around the country.

In a statement, the group said, "We're going to court for the communities we serve — not because we want to, but because we have to." ​

Why is the funding freeze concerning?

Freezing this money halts many clean energy projects that were supposed to lower energy bills, clean up the air, and create jobs in places that need them. 

The Natural Resources Defense Council said initiatives such as the Greenhouse Gas Reduction Fund lower household energy expenses. Plus, stalling these projects undermines efforts to reduce greenhouse gas pollution to mitigate the impacts of the changing climate. ​

The lawsuit is one of many recent legal moves aimed at stopping the Trump administration from undoing climate programs. California's attorney general has filed cases focused on the environmental rollbacks, and groups such as Earthjustice have been resilient in court, suing more than 130 times. Ultimately, state officials and nonprofits aren't sitting back while clean energy plans get pulled apart.

What's being done to keep clean energy moving?

State and local governments are moving forward on clean energy. In New York, lawmakers introduced a bill in early 2025 to help renters and building owners fix up older buildings so they're ready for upgrades such as heat pumps and solar. 

Additionally, New York Gov. Kathy Hochul put $16.5 million toward cutting pollution in public housing, with a focus on switching to electric systems and making buildings more efficient.

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For now, you can stay informed, invest in a clean future if possible, support clean energy programs and green businesses, and speak up when progress is being stalled.

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