Judge blocks Trump administration from terminating $14 billion in 'green bank' grants

A federal judge on March 18, 2025, blocked the Trump administration from terminating $14 billion in grants awarded to three climate groups by the Biden administration, saying the government’s “vague and unsubstantiated assertions of fraud are insufficient.”

A federal judge on Tuesday (March 18, 2025) blocked the Trump administration from terminating $14 billion in grants awarded to three climate groups by the Biden administration, saying the government's “vague and unsubstantiated assertions of fraud are insufficient.”

The order by U.S. District Judge Tonya Chutkan prevents — for now — the Environmental Protection Agency from ending the grant program, which totaled $20 billion. The judge also blocked Citibank, which holds the money on behalf of EPA, from transferring it to the government or anyone else.

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EPA Administrator Lee Zeldin accused the grant recipients of mismanagement, fraud and self-dealing and froze the grants. But after reviewing arguments in the case, Judge Chutkan said Mr. Zeldin's allegations fell short.

“At this juncture, EPA Defendants have not sufficiently explained why unilaterally terminating Plaintiffs' grant awards was a rational precursor to reviewing” the green bank program, Judge Chutkan wrote.

She was the third judge of the day to rule against the Trump administration. The trio of rulings came within hours of an extraordinary conflict, as President Donald Trump called for the impeachment another judge who had temporarily blocked deportation flights. President Trump's message drew a rare rebuke from Supreme Court Chief Justice John Roberts.

Climate United Fund and other groups had sued the EPA, Lee Zeldin and Citibank, saying they had illegally denied the groups access to $14 billion awarded last year through the Greenhouse Gas Reduction Fund, commonly referred to as a “green bank." The program was created by the 2022 Inflation Reduction Act to finance clean energy and climate-friendly projects.