Climate United Takes Legal Action to Unfreeze Federal Funds and Deliver Clean Energy Savings to Americans
March 8, 2025
After three weeks of frozen funds, coalition takes the next step to protect legally obligated dollars for American communities.
WASHINGTON D.C., March 8, 2025 — Today, Climate United Fund (“Climate United”) filed suit against the Environmental Protection Agency (EPA) and Citibank for illegally withholding obligated funds. Climate United and seven other Greenhouse Gas Reduction Fund (GGRF) awardees have been unable to draw funds from EPA-controlled accounts at Citibank for three weeks, with no explanation from EPA or Citibank despite numerous formal inquiries.
The filing alleges that EPA has acted to prevent Citibank from dispersing funds, harming Climate United, its borrowers, and the communities they serve. Small businesses and developers are unable to draw committed funds for project expenses, critical programs are delayed or paused, and Climate United’s reputation as a lender is impacted.
“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 April 2024, Climate United was selected as an awardee under the EPA’s National Clean Investment Fund (NCIF) program and entered into a legally-binding contractual agreement with the EPA to deliver energy savings, jobs, clean air, and economic growth to communities across America. The Climate United coalition was selected by the EPA after a rigorous, transparent, competitive process based on a combined 120 years of experience investing in communities in all 50 states.
Congress passed the GGRF into law as part of the Inflation Reduction Act in 2022, and the EPA was required by statute to obligate funds by September 30, 2024. Eight awardees for the NCIF and Clean Communities Investment Accelerator (CCIA) finalized their contracts in August 2024. The Climate United coalition started making loans in September 2024 and has committed nearly $400 million to critical projects that demonstrate the value of this public-private partnership.
In recent weeks, the EPA Administrator has publicly expressed concerns about transparency and oversight and has falsely claimed that funds were rushed out of the EPA. Robust reporting and accountability measures are detailed in Climate United’s contract with EPA, and the agency has full visibility into transaction-level data and awardees’ Citibank accounts. Extensive details about terms and conditions, selection process, and awardee workplans have been publicly available on EPA’s website since August 2024.
The EPA’s stated priorities of ensuring clean air and water for every American, boosting domestic energy production, and bringing back American jobs are integral to Climate United’s workplan. Climate United’s investments are generating affordable domestic energy for rural, low-income and Tribal communities across the country, making homes healthier and mortgages more affordable for American families, and creating good jobs through local projects that drive demand for American-made technologies.
Several organizations provided statements of support, demonstrating what’s at stake for families and small businesses across industries and geographies:
"Lyft is excited to collaborate with Climate United to help our two million drivers across the country who may qualify for National Clean Investment Fund financing that will enable them to purchase electric vehicles. Keeping these federal funds flowing will ensure drivers can save an estimated 40% to 65% in fuel costs and $300 per year in maintenance costs, savings that go into the pockets of hard-working Americans during these challenging economic times." — Lyft
“Our project located in Fort Worth, Texas, was to receive $4 million in financing and is leveraging an additional $30 million in private capital to create 116 affordable units. The freeze on these funds has put the entire development at risk. This project is led by a Texas-based, women-owned development firm and it will contribute to the local tax base and has a track record of hiring local businesses for the construction of the project.” — Megan Lasch, President, O-SDA Industries, LLC
“As a nonprofit CDFI with 39 years of experience helping New Mexican families buy and own their homes, Homewise plans to use Greenhouse Gas Reduction Fund (GGRF) funding to make below-market rate loans directly to homeowners so that they can install solar panels, replace an old gas furnace with an electric heat pump, or make other energy efficient home improvements. These projects are often too expensive or feel like a luxury for regular New Mexicans, and GGRF funding can make these upgrades affordable while decreasing energy bills for more than 1,200 New Mexico homeowners by 2030. Without GGRF funding, Homewise home improvement loans will have higher rates and reach fewer than 300 people over the next five years, taking away an opportunity for many New Mexico families to invest in their homes and their futures.” — Michael Loftin, CEO, Homewise
"The benefits of solar energy, from lower electricity costs to reliable power, to local job creation, have long eluded community-based nonprofits - the schools, churches, food banks and health clinics that serve as lifelines in their communities. For every dollar RE-volv invests in a nonprofit solar project, we unlock over two dollars worth of lifetime electricity savings that these organizations can put back into serving their communities. The historic Greenhouse Gas Reduction Fund will finally allow capital to flow into these projects and bring clean energy abundance and resiliency to communities that need it most." — Andreas Karelas, Executive Director, RE-volv
“The pressing housing crisis requires innovative solutions, and integrating energy efficiency is a pivotal strategy to preserving affordability and lowering costs for residents. Similar to other catalytic funds, Climate United’s financing is an essential part of our capital stack which will ensure residents benefit from both reduced energy costs and stable housing options.” — Robert Sheppard, Founder and Managing Partner, Vital Housing
“The Climate United NEXT program is a critical component for Indian Country to harness clean energy opportunities. The Wisconsin Indigenous Housing and Economic Development Corporation’s project in partnership with Climate United will provide Wisconsin Tribes access to clean energy programming, financing, and workforce development opportunities. Jeopardizing funding of GGRF will halt the opportunity for Indian Country to elevate native communities in the clean energy space creating a domino effect affecting our NEXT Seven Generations.” — Fern V. Orie, Chief Executive Officer, Wisconsin Indigenous Housing and Economic Development Corporation
“Clean Energy Federal Credit Union, a national financial institution dedicated to expanding access to clean energy, has been actively working with Climate United and other organizations across the country to develop loan programs that help lower-income households afford renewable energy and energy-efficient upgrades. With interest rates remaining high and the cost of everyday essentials continuing to rise, the need to support families struggling with high energy bills is more urgent than ever. If the funding allocated to credit unions through the Greenhouse Gas Reduction Fund is frozen, the impact on programs serving lower-income communities could be significant. These funds are essential for offering affordable clean energy loans, supporting local projects, and creating economic opportunities. The Greenhouse Gas Reduction Fund is designed to direct resources where they are needed most, and without it, these disparities could worsen. Ultimately, freezing these funds would make it harder for many families to access clean energy solutions, upgrade to more efficient systems, and lower energy costs, affecting not just household budgets but also long-term health and environmental well-being.”— Terri Mickelsen, Chief Executive Officer, Clean Energy Federal Credit Union
“35% of Hopi households do not have access to electricity, and Hopi households that do have grid-electricity suffer from notoriously unreliable service including frequent and extended power outages lasting for hours or days. This leads to unreliable access to medical equipment and food spoilage for a community that has to travel 3 hours round trip to go to a supermarket. This project will construct an 8 MW solar and battery microgrid and 12 miles of new distribution lines that will provide reliable electricity, increase electricity access, and create 50 local jobs. The NEXT grant is a critical component of this project that will fund project development activities such as site and geotechnical surveys. These are critical pre-development steps that will lead to successful project implementation.” — Fletcher Wilkinson, Energy Manager, Hopi Utilities Corporation
“The Northwest Native Chamber is stewarding the development of the Center for Tribal Nations (CTN)—a state-of-the-art campus dedicated to advancing the economic, social, and cultural prosperity of Native communities in Oregon and beyond. This groundbreaking initiative will revitalize a culturally significant site, creating shared spaces for collaboration, innovation, education, entrepreneurship, and community gathering. The NEXT grant is critical to finalizing key feasibility and infrastructure plans, ensuring the project stays on track. Without this funding, the CTN may not come to fruition, jeopardizing a transformative investment that will benefit not just Native communities, but all people by fostering a more sustainable and resilient economy for our collective prosperity.” — James Alan Parker, CEO, Northwest Native Chamber
“Climate United is critical to the development and deployment of resilient energy infrastructure for all Americans. GGRF funding was designed, and is being deployed, to provide patient financing to households, small businesses, and non-profits across the country who are investing in Solar, Wind, Energy Storage, Building Electrification, and more. The elimination or further disruption of GGRF funding will result in catastrophic consequences for communities in all states. Our team at Enduring Planet stands with Climate United in ensuring that all households and businesses in this country have a path towards energy independence and security for years to come.” — Dimitry Gershenson, CEO, Enduring Planet
"The Native American Community Clinic is a lifeline for American Indian families in Minnesota, providing essential healthcare where it’s most needed. Guided by the teachings of the seventh generation, we are committed to making decisions that benefit not only our community today but also future generations. The NEXT grant is crucial for transforming our clinic into an eco-friendly, sustainable space that reduces our environmental impact while delivering better care. By integrating sustainable, eco-friendly practices, we align with indigenous values of land stewardship, ensuring a healthier future. Any delay in this funding would hinder our efforts to address environmental health challenges and jeopardize the long-term well-being of our people." — Dr. Antony Stately (Oneida + Ojibwe), CEO, Native American Community Clinic
"US SIF has championed the GGRF to catalyze clean energy investments in communities often overlooked by traditional investing. Climate risks continue to ripple through the capital markets and now is not the time to pull back on the investments that will propel the clean energy transition. Climate United is building projects with the funds from the GGRF that will create robust and resilient communities, generate good jobs, and provide new opportunities for investors to generate returns and impact." – Maria Lettini, CEO of US SIF: The Sustainable Investment Forum
“I want to emphasize the critical implications of rescinding the Greenhouse Gas Reduction Fund (GGRF) and Climate and Clean Energy Investment Act (CCIA) funding that has been lawfully awarded to Tribal Nations. Such actions jeopardize essential resources for our communities and fundamentally undermine the trust and treaty responsibilities that the United States has towards Indigenous peoples. The federal government has a longstanding obligation to uphold treaties that recognize the sovereignty of Tribal Nations and their right to self-determination. By rescinding funding that supports clean energy initiatives, the administration is effectively breaching this trust, disregarding the commitments made to promote the welfare and development of Indigenous communities. This funding is more than financial support. It is a recognition of the unique role that Tribal Nations play in addressing environmental challenges and fostering sustainable practices. To withdraw these resources is to send a message that the rights and needs of these communities can be overlooked, further entrenching historical inequities. We must advocate for policies that honor our treaties and reinforce the trust relationship. Rescinding GGRF and CCIA funding is a step backwards, and it undermines the progress we have made towards environmental justice and economic empowerment. I urge the EPA to consider the profound impact of these decisions on Tribal Nations and to reaffirm its commitment to honoring our shared responsibilities.” – Chéri A.Smith (Mi’kmaq Descendant), President & CEO, Alliance for Tribal Clean Energy 501(c)3
“Spruce Root is Certified Native CDFI working to build more economic resilience for the communities in Southeast Alaska, a place rich in culture and natural resources. One of the communities we work with is Metlakatla (the only community on a reservation in Alaska). Metlakatla Power & Light (MP&L) is pioneering the transition to the first Net Zero Tribal Utility in the U.S., setting a national precedent for tribal energy resilience and economic sustainability. With $23M in federal grants secured, MP&L is modernizing hydropower, integrating wind and hydrogen storage, and expanding smart grid technology, all while prioritizing U.S.-manufactured components under Buy American policies. This transformation is actively creating jobs, workforce training programs, and new revenue streams through power sales and small business contracts. However, this progress is ongoing, and without continued investment, these groundbreaking advancements risk being stalled. Expanding broadband access and clean transportation remains crucial to ensuring long-term economic and energy security for the Metlakatla Indian Community. MP&L’s efforts are pacesetting, yet fragile—without sustained momentum, these positive outcomes will not be fully realized. Federal programs such as the Greenhouse Gas Reduction Fund that expand access to capital for projects such as the one Metlakatla are critical for communities throughout Alaska.” – Alana Peterson, Executive Director, Spruce Root Community Development
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ABOUT CLIMATE UNITED
Climate United is a public-private investment fund that removes financial barriers to clean technologies so every American can benefit from good-paying jobs, lower energy bills, and better public health. The Climate United coalition brings 120 years of collective experience directly managing more than $30 billion in private and institutional capital to unlock economic opportunity in all 50 states and territories. Learn more at ClimateUnited.org.
