The Trump administration has rescinded $20 billion in funding allocated for greenhouse gas reduction projects, sparking backlash from climate advocates and Democrats who argue the move is unlawful. The funds were initially designated under the Biden administration’s 2022 Inflation Reduction Act to support clean energy and transportation initiatives for disadvantaged communities.
Environmental Protection Agency (EPA) Administrator Lee Zeldin justified the rollback, citing concerns over potential fraud, waste, and abuse, though no specific details were provided. The agency stated that it would reallocate the funds “with enhanced controls” but did not clarify their new purpose. The U.S. Justice Department and FBI are reviewing the program.
The decision aligns with the Trump administration’s broader efforts to curb climate-related spending, including freezing environmental justice funding. In response, the Climate United Fund advocacy group has sued the EPA and Citibank for withholding the funds, arguing it violates a legally binding contract.
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