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Attorney General sues Trump administration over blocked clean-energy funding

LEGAL NEWSLINE

Thursday, March 20, 2025

Attorney General sues Trump administration over blocked clean-energy funding

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Attorney General Keith Ellison | Twitter Website

Minnesota Attorney General Keith Ellison, alongside a coalition of attorneys general from California, Illinois, and Maine, has initiated legal action against the Trump administration. The lawsuit aims to secure federal grant dollars intended for clean-energy projects in Minnesota and other states. These funds are crucial for the Minnesota Climate Innovation Finance Authority (MnCIFA), a public "green bank" established by the state to promote clean energy and reduce greenhouse gas emissions.

Attorney General Ellison stated, "I’m leading this coalition of attorneys general in opposing yet one more illegal power grab by the Trump administration because it is our job to stand up for the Constitution and the rule of law when others try to run roughshod over it."

The legal action follows allegations that since February 2025, the Environmental Protection Agency (EPA) has obstructed a $20 billion appropriation authorized by Congress as part of the 2022 Inflation Reduction Act. This act was designed to support clean-energy initiatives across various states. According to Ellison and his colleagues, this obstruction violates constitutional principles related to the separation of powers.

Additionally, Citibank is named as a co-defendant in the lawsuit for allegedly freezing funds after receiving a letter from the FBI on February 17, 2025. This freeze occurred despite Citibank's legal obligation to release congressionally approved funds upon request. Attorney General Ellison led an effort on March 7, 2025, urging Citibank to unfreeze these funds.

Ellison remarked on Citibank's compliance with government pressure: "We are also holding Citibank accountable for improperly complying with the government’s campaign of intimidation and freezing funds that it is required by law to release."

Further complicating matters, attempts were made by federal authorities to seize these funds held by Citibank. However, these efforts have faced resistance; notably, a top DOJ prosecutor resigned over lack of evidence for seizure actions.

On March 11, 2025, without explanation, EPA terminated grants related to two funding streams managed by Citibank. In response, MnCIFA and other state green banks claim wrongful termination of grant funds and violations of federal law in their filed lawsuit.

The Office of Minnesota Attorney General Keith Ellison emphasizes its commitment to diversity and equal opportunity employment.

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