EPA must unfreeze Biden-era ‘green bank’ funds, says federal judge

A federal judge ruled against the EPA, ordering the release of funds to nonprofits awarded grants for a "green bank" program. The EPA, under the Trump administration, had frozen these funds, citing mismanagement and potential fraud. The nonprofits sued, arguing the EPA's actions were unlawful and violated due process. Judge Chutkan sided with the nonprofits, finding insufficient evidence of wrongdoing to justify the funding freeze. The EPA immediately appealed the decision. The "green bank" program, established under the Inflation Reduction Act, aims to finance clean energy projects. The EPA's actions were met with criticism, with a federal prosecutor declining to open a criminal investigation due to lack of evidence. The nonprofits maintain the EPA's claims of fraud and mismanagement were pretextual. The EPA continues to assert its right to terminate the contracts based on oversight concerns. The government's attempt to re-characterize the case as a simple contract dispute could lead to a less favorable court for the nonprofits. The judge's ruling represents a setback for the Trump administration's efforts to hinder climate-friendly initiatives.