An environmental group representing a coalition of nonprofit financial institutions awarded grant funding from the federal Greenhouse Gas Reduction Fund (GGRF) has filed a lawsuit against the Environmental Protection Agency (EPA) and Citibank for illegally withholding obligated funds. These financial institutions have been unable to draw funds from EPA-controlled accounts at Citibank for three weeks and were not provided an explanation from EPA or Citibank despite formal inquiries. Plaintiff alleges that the EPA has acted to prevent Citibank from dispersing funds, harming plaintiff, its borrowers, and the communities it serves in violation of the Administrative Procedure Act, federal regulations, the Inflation Reduction Act, and the Appropriations and Due Process Clauses of the Constitution. Plaintiff seeks declaratory and injunctive relief.
