Federal Judge Unfreezes $20 Billion Green Energy Funding Amid Trump Appeal

WASHINGTON, D.C. — A federal judge has ruled against the Trump administration, unfreezing approximately $20 billion in funding designated for green energy initiatives, including solar energy projects and efficiency upgrades for small businesses. Judge Tanya Chutkan issued her ruling on April 14, 2025, siding with eight nonprofit organizations that sued Citibank and the Trump administration, asserting that the Environmental Protection Agency (EPA) illegally terminated the funding program.

Chutkan’s decision mandates that the congressionally appropriated funds be released and distributed to the intended nonprofits by 2 p.m. Thursday. In response, a spokesperson for the Trump administration announced plans to appeal the ruling, stating, “The DC District Court does not have jurisdiction to reinstate the $20 billion Biden-Harris ‘Gold Bar’ scheme.”

The lawsuit centered on allegations that the Trump administration acted without proper evidence to terminate the grants. During a recent hearing, Chutkan challenged Department of Justice attorneys to provide proof of waste, fraud, or abuse in the program. “You’re still unable to proffer me any evidence with regard to malfeasance,” Chutkan stated, highlighting the shifting reasons for cutting off grant funding.

CitiBank, which manages several accounts for the nonprofits, signaled its willingness to unfreeze funds contingent upon Chutkan’s ruling. The nonprofits involved in the lawsuit aim to utilize the funds for various environmentally sustainable projects, including solar power installations for churches and updates to refrigeration systems in small grocery stores.

As reported by CNN, these funds stem from the Inflation Reduction Act passed in 2022, intended to financially support small, nonprofit lenders focused on energy efficiency and clean energy projects in several states, including Missouri, Indiana, and North Carolina. This funding supports local initiatives that provide cost savings for businesses and communities.

In a separate legal matter, the Justice Department is pursuing a lawsuit against Maine due to its noncompliance with the Trump administration’s directive banning transgender athletes from participating in high school sports. Attorney General Pam Bondi announced on Wednesday that Maine’s actions represent a violation of federal law regarding sex-based discrimination in federally funded schools.

Bondi emphasized the importance of enforcing federal policies, declaring the DOJ’s intention to litigate after other measures have reportedly failed. The lawsuit claims that Maine’s policies result in inequitable outcomes for girls in sports. Tensions have risen amid threats of funding cuts from the Trump administration should Maine continue to resist compliance.

In related remarks during a recent conference in Chicago, former President Joe Biden criticized the Trump administration’s management of the Social Security Administration, pointing to significant staff reductions and restructuring. Biden accused the current administration of undermining the agency’s ability to serve millions of Americans, a move that could resonate with vulnerable constituencies ahead of the upcoming elections.