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citibank
Trump EPA and Citibank Sued for 'Illegally' Freezing Green Energy Funds
"This program was designed to save money for hard-working Americans who are struggling to pay for groceries and keep the lights on," said the head of a climate group that had been awarded funds to finance green energy expansion.
Mar 10, 2025
The need for a federal lawsuit filed Monday presents "more evidence of a constitutional crisis," according to one campaigner, as plaintiffs pushed back against the Trump administration's unlawful freezing of funds appropriated by Congress to help fuel a green energy transition in marginalized communities nationwide.
The lawsuit was announced Saturday by Climate United Fund, a nonprofit green investment fund, and was received Monday by U.S. District Judge Tanya Chutkan, who previously presided over President Donald Trump's criminal trial regarding his alleged attempts to overturn the 2020 election.
The group is accusing the Environmental Protection Agency and Citibank of "illegally withholding" $7 billion that had been awarded to Climate United through the Inflation Reduction Act (IRA), which set up a $20 billion Greenhouse Gas Reduction Fund, also known as the Green Bank.
The Green Bank was established to fund solar power, energy-efficient housing projects, and electric vehicles. Climate United has reported that it used funds to begin pre-construction on a solar energy project across the University of Arkansas system, invest in electric trucks at the ports of Los Angeles and Long Beach with plans for nationwide expansion, and launch a grant program for low-income communities to start clean energy projects.
For the last two weeks, The New York Times reported, Climate United and seven other nonprofits that were awarded funding through the Green Bank have been unable to withdraw the money from their accounts at Citibank.
"They have essentially acted as if they control the power of the purse, but very clearly written into the Constitution is the separation of powers that grants Congress and Congress alone the power of making funding decisions."
The Times reported that the EPA appeared to have frozen the funds after EPA Administrator Lee Zeldin called for a "termination" of the agreement the Biden administration made with Citibank when the money was allocated to the nonprofits.
Zeldin made that demand last month after the right-wing group Project Veritas, released a hidden-camera video in which it had surreptitiously recorded an EPA employee saying before Trump took office that the agency was attempting to spend federal money on climate programs before the Republican president was inaugurated.
Zeldin suggested the comments signaled the Green Bank was "designed to obligate all of the money in a rush job with reduced oversight" and was "irresponsibly shoveling boat loads of cash to far-left, activist groups in the name of environmental justice and climate equity."
Climate United and the other groups impacted by the funding freeze have been struggling to pay their staff, the Times reported.
"This isn't about politics; it's about economics," said Beth Bafford, CEO of Climate United. "This program was designed to save money for hard-working Americans who are struggling to pay for groceries and keep the lights on. We're going to court for the communities we serve—not because we want to, but because we have to."
In his statement about the Green Bank funding last month, Zeldin said he was referring the matter to the Office of the Inspector General, suggesting an accusation of potential fraud.
Days after Zeldin's directive, federal prosecutor Denise Cheung resigned after declining to freeze an unidentified bank's accounts for a government contractor, saying she had not found "sufficient evidence" of criminal activity. Cheung's resignation is believed to have stemmed from Zeldin's accusations regarding the Greenhouse Gas Reduction Fund.
In an interview with "Living on Earth" on Public Radio Exchange last month, Jillian Blanchard, vice president of climate change and environmental justice at Lawyers for Good Government, said Zeldin's push to claw back $20 billion that was awarded last year through legislation passed by Congress suggests that "this executive [branch] seems to believe that they have and should have more power than both Congress and the courts."
"They have essentially acted as if they control the power of the purse, but very clearly written into the Constitution is the separation of powers that grants Congress and Congress alone the power of making funding decisions," said Blanchard.
The Trump administration has already been blocked from freezing funds that were were appropriated by Congress. In January the president moved to block federal grants and loans in an order that was swiftly blocked by federal courts, with one judge saying the funding freeze was "likely unconstitutional."
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Wall Street Banks Accused of Trying to Sabotage Key Consumer Protection Rule
"The CFPB must stop this ploy by the biggest banks to keep us trapped under their thumbs."
Nov 15, 2024
Consumer advocates applauded last month as the Consumer Financial Protection Bureau finalized a rule aimed at making it easier for people to switch financial institutions if they're unhappy with a bank's service, without the bank retaining their personal data—but on Thursday, more than a dozen groups warned the CFPB that major Wall Street firms are trying to stop Americans from benefiting from the rule.
Several advocacy groups, led by the Demand Progress Education Fund, wrote to CFPB director Rohit Chopra warning that major banks—including JP Morgan Chase, Bank of America, Citi, TD Bank, and Wells Fargo—sit on the board of the Financial Data Exchange (FDX), which has applied to the bureau for standard-setting body (SSB) status, which would give it authority over what is commonly known as the "open banking rule."
Standard-setting authority for the banks would present a major conflict of interest, said the groups.
The banks are also on the board of the Bank Policy Institute, which promptly filed what the consumer advocates called a "frivolous lawsuit" to block the open banking rule when it was introduced last month, claiming it will keep banks from protecting customer data.
At a panel discussion this week, Bank of America CEO Brian Moynihan also said the open banking rule, by requiring financial firms to unlock a consumer's financial data and transfer it to another provider for free, would cause "chaos" and amplify concerns over fraud.
"The American people are fed up with Wall Street controlling every aspect of their lives and the open banking rule is an opportunity to give all of us some financial freedom."
The groups wrote on Thursday that big banks want to continue to "maintain their dominance by making it unduly difficult for consumers to switch institutions."
"The presence of these organizations on both the FDX and BPI boards undermines the credibility of FDX and presents various concerns relating to conflict of interest, interlocking directorate, and antitrust law," they wrote.
Upon introducing the finalized rule last month, Chopra said the action would "give people more power to get better rates and service on bank accounts, credit cards, and more" and help those who are "stuck in financial products with lousy rates and service."
The coalition of consumer advocacy groups—including Public Citizen, the American Economic Liberties Project, and Americans for Financial Reform—urged Chopra to reject FDX's application for standard-setting authority so long as the banks remain on its board.
“It would be a flagrant conflict of interest for the same banks who are suing to block the open banking rule because it threatens their market dominance to also be in charge of implementing it," said Demand Progress Education Fund corporate power director Emily Peterson-Cassin. "The American people are fed up with Wall Street controlling every aspect of their lives and the open banking rule is an opportunity to give all of us some financial freedom. The CFPB must stop this ploy by the biggest banks to keep us trapped under their thumbs."
The groups called the open banking rule "a historic step forward for the cause of giving consumers true freedom intheir financial lives."
"For this reason, it is imperative that SSB status not be granted to an organization whose board members are, either directly or through a trade association they are participating in, suing the CFPB to stop the rules from taking effect, particularly when such members may be ethically conflicted from such dual participation," said the groups. "By rejecting SSB status for FDX or any other organization with similar conflicts of interest pertaining to Section 1033, the CFPB will help prevent big banks from sabotaging open banking rules."
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50 Arrested in Final 'Historic' Summer of Heat Protest at Citibank
"We're here for you and your children," one campaigner told a police officer who was arresting her. "We're here for our world."
Sep 05, 2024
Closing out a "historic" summer of civil disobedience—but with no plans to back off their demands that Wall Street divest from planet-heating fossil fuels—the "Summer of Heat" campaign blockaded the entrance of Citibank's headquarters in New York for an hour on Thursday.
At the 32nd protest held by Stop the Money Pipeline, New York Communities for Change, and other groups since June 10, organizers said 50 people were arrested, including climate scientists and an advocate dressed as an orca—a reference to numerous cases of whales ramming and sinking luxury yachts in recent years.
"The water is too damn hot!" said the costumed protester. "Stop funding fossil fuels."
Summer of Heat has targeted Citibank due to its status as Wall Street's largest funder of methane gas extraction since 2016 and the second-worst funder of oil, coal, and gas projects in recent years, spending $396.3 billion from 2016-23.
For an hour, roughly 1,000 Citibank employees were barred from entering the building as protesters blocked the doors.
"I've been studying climate change since 1982 and no one is listening to the data," said biologist and anti-fracking advocate Sandra Steingraber—who has joined multiple Summer of Heat actions—as she was arrested. "So today they're going to have to listen to my body blocking the doors of the world's largest funder of new fossil fuel projects."
More than 5,000 people have joined Summer of Heat protests since June, and there have been more than 600 arrests. Citibank's response to the demonstrators has escalated to violence at times, with a security guard punching one protester in the building's lobby last month.
One woman told police arresting her on Thursday that her grandson suffers from asthma resulting from wildfire smoke, which climate scientists have linked to fossil fuel extraction and planetary heating.
"We're here for you and your children," she told an officer. "We're here for our world."
As the campaigners blocked the Citibank entrance, cellist John Mark Rozendaal and Stop the Money Pipeline director Alec Connon were preparing to attend a court hearing on Friday regarding assault and criminal contempt charges. Connon has said he was "falsely accused of assault by Citibank security so they could get a restraining order" keeping him from returning to protests at the headquarters.
Mary Lawlor, United Nations special rapporteur on human rights defenders, expressed "strong concern at the charges" and said she would be "closely following" the trial.
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