Senate Democrats ask EPA to justify Citibank account freeze

By Jean Chemnick | 02/25/2025 06:15 AM EST

EPA has been silent about the frozen funds. Nonprofit grant recipients say the agency and bank have been mum about what’s happening.

Lee Zeldin speaks at a desk with a microhphone.

Now-EPA Administrator Lee Zeldin testifies during his confirmation hearing before the Senate Environment and Public Works Committee on Capitol Hill on Jan. 16. Francis Chung/POLITICO

Senate Environment and Public Works Democrats demanded Monday that EPA provide details about freezing the commercial bank accounts of nonprofit groups awarded climate grants.

In a letter spearheaded by ranking member Sheldon Whitehouse (D-R.I.), the senators questioned EPA Administrator Lee Zeldin about his ordering the Citibank freeze, which took effect last week for Greenhouse Gas Reduction Fund grants. The grants are no longer under the agency’s control.

EPA has been silent about the reason for the freeze. The grant recipients themselves say they haven’t been notified by EPA or Citibank about the cause or duration of the funding pause, which they say has put their own investments and contracts at risk.

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“Because there is no legal basis for the Environmental Protection Agency (EPA) to claw back these expended grants, and because doing so would destroy thousands of jobs and harm hundreds of communities across the country, we call on you to respect applicable legal authority, reconsider your decision, and ensure funding is available as the law requires,” the letter states.

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