A federal judge has temporarily restrained the Environmental Protection Agency from withdrawing $14 billion in climate grant funding from Citibank, amidst claims of fraud and favoritism. The judge found the EPA's justifications unconvincing and noted procedural failures in the grant termination process. This dispute follows weeks of contention between the agency and eight nonprofits awarded funding for renewable projects. The ruling maintains the status of funds frozen at Citibank since February, preventing any transfers to the federal government until legal proceedings conclude.
U.S. District Judge Tanya S. Chutkan ruled that the E.P.A. had not offered credible evidence in support of its efforts to block the grants, nor followed proper procedures in canceling them.
The ruling comes after the E.P.A.'s attempts to terminate $20 billion in grants, marking an escalation in a dispute between the agency and eight nonprofits.
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