Filed Date: April 21, 2025
Case Ongoing
Clearinghouse coding complete
This case was one of many challenges to the freezing of federal grant funds designated for green infrastructure projects. On April 21, 2025, Opportunity Finance Network (OFN) filed suit in the District Court for the District of Columbia. Represented by private counsel, OFN sued the Environmental Protection Agency (EPA), its Administrator, and Citibank, N.A., a national banking association. OFN challenged the freezing of federal grants that it received through the Clean Communities Investment Accelerator fund, which is part of the Greenhouse Gas Reduction fund. The funds were to be used for the "rapid deployment of low- and zero-emission products, technologies, and services." OFN, a nonprofit organization, served as a financial intermediary between Community Development Financial Institutions (CDFIs) "and public and private sector partners, including foundations, corporations, banks, government agencies, and others." Under OFN's grant agreement, Citibank holds dispersed funds and dispenses them to OFN at its request.
Since March 3, 2025, however, Citibank refused to disperse funds to OFN despite repeated requests. On March 11, OFN received a Notice of Termination from the EPA stating that OFN's grant agreement was terminated. In its complaint, OFN alleged that the EPA's actions were arbitrary and capricious and not in accordance with law under the Administrative Procedure Act. It also alleged that EPA violated the Inflation Reduction Act, which requires EPA "to spend the funds appropriated for grants to be awarded under the Greenhouse Gas Reduction Fund", and the Constitution's Appropriations Clause, separation of powers, and Due Process Clause. Against Citibank, OFN brought breach of contract, replevin, and conversion claims for the withholding of the funds. OFN requested the court to declare EPA's actions to be unlawful, to enjoin the EPA from removing the funds or terminating OFN's grant, and to order Citibank to release OFN's grant funds.
The case was assigned to Judge Tanya S. Chutkan. On May 9, the parties filed a joint motion to consolidate the case with other challenges to the EPA's actions in Climate United Fund v. Citibank. The parties stipulated that, since "OFN's grant is subject to the same constitutional, statutory, and regulatory provisions as the grant at issue" in the other litigation, the court should consolidate the cases. Furthermore, since the court in Climate United Fund had issued a preliminary injunction enjoining the defendants from terminating the grants or withdrawing the funds from Citibank, the EPA and OFN agreed that the EPA would adhere to the same restrictions with regard to OFN's funds.
On May 14, 2025, Judge Chutkan issued an order consolidating the cases. Judge Chutkan ordered Climate United Fund to be designated as the lead case, and all other filings (and updates) regarding this case are to be made there.
Summary Authors
Jeremiah Price (6/3/2025)
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/69919459/parties/opportunity-finance-network-v-citibank-na/
Gillett, Gabriel K. (District of Columbia)
Lockhead, Tanner (District of Columbia)
Robbins, David B. (District of Columbia)
Allen, Kenneth Winn (District of Columbia)
McElroy, Saunders Lee (District of Columbia)
See docket on RECAP: https://www.courtlistener.com/docket/69919459/opportunity-finance-network-v-citibank-na/
Last updated July 7, 2025, 12:58 p.m.