EPA says Trump's big bill should help in its fight to take back billions in green bank funds

Source: Associated Press

EPA says Trump’s big bill should help in its fight to take back billions in green bank funds

By MICHAEL PHILLIS
Updated 4:44 PM EDT, July 4, 2025

WASHINGTON (AP) — The sprawling tax and policy bill that passed Congress repeals a multibillion-dollar green bank for financing climate-friendly projects, and the Trump administration should be allowed to freeze its funding and cancel related contracts with nonprofits, federal officials said in a court filing.

Climate United Fund and other nonprofits in March sued the Environmental Protection Agency, its administrator Lee Zeldin and Citibank, which held the program’s money. The lawsuit argued the defendants had illegally denied the groups access to billions 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.

But the bill that passed Congress on Thursday would repeal the part of the 2022 law that established the green bank and rescind money that hadn’t already been obligated to its recipients.

The EPA said the bill should hand them a victory in their court fight that is being heard by a federal appeals court in Washington. Now that Congress has rescinded funding, an earlier federal judge’s decision forcing the EPA to release money to the groups should be reversed, the agency said in its Thursday court filing.

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Read more: https://apnews.com/article/epa-green-bank-trump-big-beautiful-bill-9678b82c1b5cfac53e5c956ede69a92b