Federal judge scrutinizes administration's freeze on public health funds: 'Deliberate effort to limit government oversight'

A judge is determining whether billions of dollars earmarked for eco-friendly projects were illegally frozen and withheld by the federal government.

The lawsuit by Climate United Fund alleges that the Environmental Protection Agency illegally terminated $20 billion worth of grants for financing clean energy projects and other green initiatives. The Inflation Reduction Act of 2022 initially authorized the funds, which were put into the Greenhouse Gas Reduction Fund, also known as a "green bank," the Associated Press reports.

But the Trump administration has repeatedly signaled its intent to halt much of the funding and rebates available through the IRA, and new EPA administrator Lee Zeldin announced in March that green-bank grants would be canceled.

"Twenty billion of your tax dollars were parked at an outside financial institution, in a deliberate effort to limit government oversight," Zeldin said in a video about the funds, which were being held in Citibank.

Climate United claims the EPA ended the grants without evidence and that contracts stated the fund could only be terminated because of fraud or major performance failures.

"This isn't about politics; it's about economics," Climate United CEO Beth Bafford said in a release. "This program was designed to save money for hard-working Americans who are struggling to pay for groceries and keep the lights on."

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In March, U.S. District Judge Tanya Chutkan stopped the funds from being terminated but also kept the money frozen until the case could be heard further. That hearing resumed earlier this month, with Chutkan pressing EPA attorneys on the legality of how the grants were terminated.

"What plaintiffs are saying is if you wanted to stop that money from going out, you should have gone through the procedures under the" law, Chutkan said, per the AP.

Other IRA benefits include rebates and tax credits for eco-friendly upgrades, such as installing solar panels and heat pumps or purchasing an electric vehicle. People who want to take advantage of those savings may want to act quickly, as they could also be on the chopping block — although congressional approval would be necessary to end them.

Should the government continue to give tax incentives for energy-efficient home upgrades?

Absolutely 💯