A federal judge says some nonprofits awarded billions for a so-called green bank to finance clean energy and climate-friendly projects cannot have their contracts scrapped and must have access to some of the frozen money. The ruling is a defeat for President Donald Trump's Environmental Protection Agency, which argues the program is rife with financial mismanagement.
The order late Tuesday by U.S. District Judge Tanya Chutkan "gives us a chance to breathe after the EPA unlawfully — and without due process — terminated our awards and blocked access to funds that were appropriated by Congress and legally obligated,” said Climate United CEO Beth Bafford.
The lawsuit by Climate United Fund and other groups contends that the EPA, Administrator Lee Zeldin and Citibank, which held the grant money, illegally blocked the funds awarded last year and had jeopardized the organizations' operations.
Chutkan said Citibank must provide the money that was due to the nonprofits before the EPA had frozen their accounts in mid-February. The EPA immediately appealed.
The Greenhouse Gas Reduction Fund, commonly referred to as a “green bank,” was authorized by the 2022 Inflation Reduction Act under Democratic President Joe Biden. Its goals run counter to the Trump administration’s opposition to climate-friendly policies and its embrace of fossil fuels. Zeldin quickly made the bank a target, characterizing the $20 billion in grants as a “gold bar” scheme marred by conflicts of interest and potential fraud.
A federal prosecutor resigned after being asked to open a criminal investigation, saying there was not enough evidence to move ahead. The FBI and Treasury Department, in coordination with the EPA, pressured Citibank to freeze the grants, which it did, according to the nonprofits.
Last month, Zeldin announced the termination of the grants, saying “well documented incidents of misconduct, conflicts of interest, and potential fraud raise significant concerns and pose unacceptable risk.”
Chutkan paused that move, saying the government provided no significant evidence of wrongdoing. But the Republican administration, in a recent filing, asserted it was allowed to end the contracts based on oversight concerns and shifting priorities.
“EPA’s new admission that it ‘did not terminate for Plaintiffs’ noncompliance’ ... confirms that EPA’s invocation of ‘waste, fraud, and abuse’ was arbitrary and pretextual” the nonprofits said in a court filing.
Molly Vaseliou, the EPA's associate administrator for public affairs, contended that the court lacked the power to reinstate the money. She did not provide any new evidence and repeated unsubstantiated allegations of program abuse and conflicts of interest.
"We couldn’t be more confident in the merits of our appeal,” she said in a statement.
The government has told the court the case is “just a run-of-the-mill (albeit large) contract dispute."
That argument is important because it could move the case to a different court that can only award a lump sum and not force the government to keep the grants in place.
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Environmental Protection Agency director Lee Zeldin arrives before President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)
U.S. forces have boarded another oil tanker in the Caribbean Sea. The announcement was made Friday by the U.S. military. The Trump administration has been targeting sanctioned tankers traveling to and from Venezuela.
The pre-dawn action was carried out by U.S. Marines and Navy, taking part in the monthslong buildup of forces in the Caribbean, according to U.S. Southern Command, which declared “there is no safe haven for criminals” as it announced the seizure of the vessel called the Olina.
Navy officials couldn’t immediately provide details about whether the Coast Guard was part of the force that took control of the vessel as has been the case in the previous seizures. A spokesperson for the U.S. Coast Guard said there was no immediate comment on the seizure.
The Olina is the fifth tanker that has been seized by U.S. forces as part of a broader effort by Trump’s administration to control the distribution of Venezuela’s oil products globally following the U.S. ouster of President Nicolás Maduro in a surprise nighttime raid.
The latest:
Richard Grenell, president of the Kennedy Center, says a documentary film about first lady Melania Trump will make its premiere later this month, posting a trailer on X.
As the Trumps prepared to return to the White House last year, Amazon Prime Video announced a year ago that it had obtained exclusive licensing rights for a streaming and theatrical release directed by Brett Ratner.
Melania Trump also released a self-titled memoir in late 2024.
Some artists have canceled scheduled Kennedy Center performances after a newly installed board voted to add President Donald Trump’s to the facility, prompting Grenell to accuse the performers of making their decisions because of politics.
Mexico President Claudia Sheinbaum says that she has asked her foreign affairs secretary to reach out directly to U.S. Secretary of State Marco Rubio or Trump regarding comments by the American leader that the U.S. cold begin ground attacks against drug cartels.
In a wide-ranging interview with Fox News aired Thursday night, Trump said, “We’ve knocked out 97% of the drugs coming in by water and we are going to start now hitting land, with regard to the cartels. The cartels are running Mexico. It’s very sad to watch.”
As she has on previous occasions, Sheinbaum downplayed the remarks, saying “it is part of his way of communicating.” She said she asked her Foreign Affairs Secretary Juan Ramón de la Fuente to strengthen coordination with the U.S.
Sheinbaum has repeatedly rebuffed Trump’s offer to send U.S. troops after Mexican drug cartels. She emphasizes that there will be no violation of Mexico’s sovereignty, but the two governments will continue to collaborate closely.
Analysts do not see a U.S. incursion in Mexico as a real possibility, in part because Sheinbaum’s administration has been doing nearly everything Trump has asked and Mexico is a critical trade partner.
Trump says he wants to secure $100 billion to remake Venezuela’s oil infrastructure, a lofty goal going into a 2:30 meeting on Friday with executives from leading oil companies. His plan rides on oil producers being comfortable in making commitments in a country plagued by instability, inflation and uncertainty.
The president has said that the U.S. will control distribution worldwide of Venezuela’s oil and will share some of the proceeds with the country’s population from accounts that it controls.
“At least 100 Billion Dollars will be invested by BIG OIL, all of whom I will be meeting with today at The White House,” Trump said Friday in a pre-dawn social media post.
Trump is banking on the idea that he can tap more of Venezuela’s petroleum reserves to keep oil prices and gasoline costs low.
At a time when many Americans are concerned about affordability, the incursion in Venezuela melds Trump’s assertive use of presidential powers with an optical spectacle meant to convince Americans that he can bring down energy prices.
Trump is expected to meet with oil executives at the White House on Friday.
He hopes to secure $100 billion in investments to revive Venezuela’s oil industry. The goal rides on the executives’ comfort with investing in a country facing instability and inflation.
Since a U.S. military raid captured former Venezuelan leader Nicolás Maduro on Saturday, Trump has said there’s a new opportunity to use the country’s oil to keep gasoline prices low.
The full list of executives invited to the meeting has not been disclosed, but Chevron, ExxonMobil and ConocoPhillips are expected to attend.
Attorneys general in five Democratic-led states have filed a lawsuit against President Donald Trump’s administration after it said it would freeze money for several public benefit programs.
The Trump administration has cited concerns about fraud in the programs designed to help low-income families and their children. California, Colorado, Minnesota, Illinois and New York states filed the lawsuit Thursday in the U.S. District Court for the Southern District of New York.
The lawsuit asks the courts to order the administration to release the funds. The attorneys general have called the funding freeze an unconstitutional abuse of power.
Iran’s judiciary chief has vowed decisive punishment for protesters, signaling a coming crackdown against demonstrations.
Iranian state television reported the comments from Gholamhossein Mohseni-Ejei on Friday. They came after Supreme Leader Ayatollah Ali Khamenei criticized Trump’s support for the protesters, calling Trump’s hands “stained with the blood of Iranians.”
The government has shut down the internet and is blocking international calls. State media has labeled the demonstrators as “terrorists.”
The protests began over Iran’s struggling economy and have become a significant challenge to the government. Violence has killed at least 50 people, and more than 2,270 have been detained.
Trump questions why a president’s party often loses in midterm elections and suggests voters “want, maybe a check or something”
Trump suggested voters want to check a president’s power and that’s why they often deliver wins for an opposing party in midterm elections, which he’s facing this year.
“There’s something down, deep psychologically with the voters that they want, maybe a check or something. I don’t know what it is, exactly,” he said.
He said that one would expect that after winning an election and having “a great, successful presidency, it would be an automatic win, but it’s never been a win.”
Hiring likely remained subdued last month as many companies have sought to avoid expanding their workforces, though the job gains may be enough to bring down the unemployment rate.
December’s jobs report, to be released Friday, is likely to show that employers added a modest 55,000 jobs, economists forecast. That figure would be below November’s 64,000 but an improvement after the economy lost jobs in October. The unemployment rate is expected to slip to 4.5%, according to data provider FactSet, from a four-year high of 4.6% in November.
The figures will be closely watched on Wall Street and in Washington because they will be the first clean readings on the labor market in three months. The government didn’t issue a report in October because of the six-week government shutdown, and November’s data was distorted by the closure, which lasted until Nov. 12.
FILE - President Donald Trump dances as he walks off stage after speaking to House Republican lawmakers during their annual policy retreat, Tuesday, Jan. 6, 2026, in Washington. (AP Photo/Evan Vucci, File)
