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Trump administration claws back $20 billion in climate funds
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Trump administration claws back $20 billion in climate funds
Mar 12, 2025 5:31 AM

WASHINGTON, March 12 (Reuters) - The Trump

administration has ended $20 billion in funding for greenhouse

gas reduction projects in a move that climate advocates and

Democrats say illegally seizes money allocated for clean energy

and transportation for disadvantaged communities.

Environmental Protection Agency Administrator Lee Zeldin had

publicized his campaign to claw back money from the Greenhouse

Gas Reduction Fund, which Congress appropriated under the Biden

administration to kick-start projects aimed at curbing

pollution.

In a statement late on Tuesday, the EPA said it had clawed

back the funds, saying the program did not align with the

agency's priorities and citing concerns with potential fraud,

waste and abuse, although it gave no details.

The U.S. Justice Department and the FBI are reviewing the

program, it added.

The EPA said it would work to use the funds "with enhanced

controls" within the law but did not say specifically what it

would do with the money.

"EPA will be an exceptional steward of taxpayer dollars

dedicated to our core mission of protecting human health and the

environment, not a frivolous spender in the name of 'climate

equity'," Zeldin said.

Congress appropriated the $20 billion through the 2022

Inflation Reduction Act under Democratic President Joe Biden.

Under his successor, Republican Donald Trump, the EPA has sought

to freeze funding related to climate change and environmental

justice amid legal challenges.

Over the weekend, the Climate United Fund advocacy group

sued the EPA and Citigroup's ( C/PN ) Citibank for withholding the

funds and breaking what it called a legally-binding contractual

agreement as an awardee, saying it and seven other recipients

have been unable to access the money.

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