Filed Date: March 31, 2025
Case Ongoing
Clearinghouse coding complete
This case challenged the Environmental Protection Agency’s (EPA) termination and withholding of grant funds awarded to the Justice Climate Fund (JCF), a nonprofit created to apply for and deploy funding for clean energy and affordable housing projects in disadvantaged communities. This case is related to the case Climate United Fund v. Citibank (1:25-cv-00698), which the Clearinghouse is covering here. (To view the Clearinghouse’s coverage of environmental protection-related cases against the second Trump administration, click here.)
On March 31, 2025, JCF sued EPA, EPA administrators, and Citibank, N.A. in the United States District Court for the District of Columbia. JCF’s legal claims were grounded in the Administrative Procedure Act (APA), the Constitution’s Appropriations Clause and Due Process Clause, and federal contract law.
JCF was awarded $940 million in 2024 through the Clean Communities Investment Accelerator (CCIA), an initiative of the Greenhouse Gas Reduction Fund (GGRF) created by the Inflation Reduction Act of 2022. According to the complaint, JCF's award agreement with EPA and associated financial controls—including a Financial Agent Agreement (FAA) between Citibank and the U.S. Treasury, and an Account Control Agreement (ACA) involving Citibank, JCF, and EPA—strictly limited the grounds on which EPA could terminate funding. The agreement allowed termination only in cases of (1) substantial noncompliance, (2) material misrepresentation of eligibility, or (3) “Waste, Fraud, or Abuse” defined as violations of specific federal criminal or civil laws. The ACA required Citibank to disburse funds to JCF unless the EPA had issued a formal “Notice of Exclusive Control” based on those conditions of termination—something EPA did not do.
JCF learned in late February 2025 that Citibank had stopped processing JCF’s disbursement requests. JCF alleged that EPA orchestrated an unlawful pressure campaign to reclaim GGRF funds from JCF and other recipients. The campaign allegedly included coordination with the Department of Justice and the FBI, which unsuccessfully sought a seizure warrant and requested Citibank freeze accounts. On March 11, 2025, EPA issued JCF a “Notice of Termination,” citing concerns with “program integrity, the award process, programmatic fraud, waste, and abuse, and misalignment with the Agency’s priorities” without identifying any factual misconduct or legal violation by JCF.
The case was filed amid a broader series of lawsuits, collectively known as the “Climate United Litigation,” involving other terminated GGRF recipients. A temporary restraining order (TRO) was granted in that related litigation, barring EPA from transferring funds or enforcing terminations pending further review. JCF stated that EPA had agreed not to touch its funds at Citibank while the TRO remained in effect.
JCF argued that EPA’s termination was arbitrary, capricious, and illegal under the APA and that Citibank had breached the ACA by freezing the funds without a lawful directive. Represented by law firm Zimmer, Citron & Clarke, JCF sought declaratory and injunctive relief, including an order restoring access to its funds, blocking the EPA from enforcing its termination of JCF’s grant, and requiring Citibank to honor JCF’s disbursement requests. The case was assigned to District Judge Tanya S. Chutkan.
On April 2, 2025, the plaintiffs filed a motion for preliminary injunction.
On April 10, 2025, the defendants filed a joint motion to consolidate this case "with the Greenhouse Gas Reduction Fund (GGRF) cases already consolidated under Civ. Action No. 1:25-cv-00698," Climate United Fund v. Citibank. On April 15, the court granted the motion—thus, consolidating the cases. From April 15 forward, this case has been consolidated with Climate United Fund v. Citibank (1:25-cv-00698), which the Clearinghouse is covering here, and all further filings and proceedings will happen under the docket of the Climate United Fund case. Accordingly, the court denied as moot the plaintiffs' motion for preliminary injunction, noting in its order, "See Preliminary Injunction Order and forthcoming Memorandum Opinion in lead case No. 25-cv-698 for details."
Summary Authors
Sylvia Al-Mateen (4/24/2025)
Climate United Fund v. Citibank, District of District of Columbia (2025)
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/69821558/parties/justice-climate-fund-v-united-states-environmental-protection-agency/
Chutkan, Tanya Sue (District of Columbia)
Citron, Eric F. (District of Columbia)
Allen, Kenneth Winn (District of Columbia)
McElroy, Saunders Lee (District of Columbia)
Sacks, Marcus S (District of Columbia)
See docket on RECAP: https://www.courtlistener.com/docket/69821558/justice-climate-fund-v-united-states-environmental-protection-agency/
Last updated Aug. 21, 2025, 10:05 p.m.
State / Territory: District of Columbia
Case Type(s):
Presidential/Gubernatorial Authority
Special Collection(s):
Trump Administration 2.0: Challenges to the Government
Trump Administration 2.0: Challenges to the Government (Spending Freezes/Cuts)
Trump Administration 2.0: Challenges to the Government (Environmental Protections)
Key Dates
Filing Date: March 31, 2025
Case Ongoing: Yes
Plaintiffs
Plaintiff Description:
The Justice Climate Fund (JCF), a nonprofit created to apply for and deploy funding for clean energy and affordable housing projects in disadvantaged communities.
Plaintiff Type(s):
Non-profit NON-religious organization
Public Interest Lawyer: No
Filed Pro Se: No
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
United States Environmental Protection Agency (EPA) (- United States (national) -), Federal
Citibank, N.A. (South Dakota), Private Entity/Person
Defendant Type(s):
Case Details
Causes of Action:
Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.
Constitutional Clause(s):
Spending/Appropriations Clauses
Available Documents:
Outcome
Prevailing Party: None Yet / None
Nature of Relief:
Source of Relief:
Issues
General/Misc.:
Presidential/Gubernatorial Authority: