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FBI, EPA, and Treasury told Citibank to freeze funds as Trump administration tries to claw back climate money
In a shocking move, the Federal Bureau of Investigation (FBI), Environmental Protection Agency (EPA), and Treasury Department have collectively instructed Citibank to place an administrative freeze on various accounts related to the $27 billion Greenhouse Gas Reduction Fund. This drastic measure is allegedly part of a concerted effort by the Trump administration to claw back climate money.
As reported, Citibank revealed in court filings that the funds were disbursed as part of the Inflation Reduction Act, which was passed by Congress in 2022. The $14 billion earmarked for the National Clean Investment Fund was meant to be utilized by green banks to provide financing for clean technology projects across the nation.
It has come to light that startups with scalable technologies were eligible to receive financing to turn their innovative ideas into reality. These funds are primarily intended for loans, which would subsequently be recycled and reused for future lending. Green banks have historically demonstrated delinquency rates comparable to those of commercial and residential portfolios held by other financial institutions.
In a stunning revelation, Citibank has been tasked with holding the funds in accounts under the names of the awardees. Furthermore, it is also responsible for managing a separate $6 billion Clean Communities Investment Accelerator program. In April 2024, the EPA’s contract with Citibank was publicly disclosed.
In light of this recent development, the FBI has requested that Citibank impose a 30-day administrative freeze on accounts held by several nonprofits that received funding through the green bank mechanism. Additionally, it has asked the bank to freeze other nonprofit and government agency accounts, including those belonging to Habitat for Humanity, United Way, Colorado Clean Energy Fund, and New York State’s Department of Taxation and Finance.
It is crucial to note that three nonprofits have already taken Citibank to court, demanding that the frozen funds be released. This recent surge in legal action arises from the Trump administration’s attempt to claw back climate money.
As a result, it remains unclear how this unfolding situation will proceed, with the stakes growing higher by the minute.
