Attorney General Kwame Raoul, along with attorneys general from California, Maine, and Minnesota, has filed a lawsuit against the Trump administration. The legal action aims to preserve federal grant dollars designated for clean-energy projects in Illinois. This move seeks to protect funding intended for the Illinois Climate Bank, a state-created public bank focused on promoting clean energy and reducing greenhouse gas emissions.
The lawsuit also involves Citibank, which holds the funds for the federal government. The aim is to ensure that these funds are released as mandated by law. Attorney General Raoul stated, "Congress appropriated billions to assist in transitioning to a clean-energy future, protecting our environment from carbon emissions and putting people to work in the process." He further expressed concern over the Trump administration's decision to deny these funds, emphasizing its potential impact on clean energy projects across Illinois.
The coalition of attorneys general claims that since February 2025, the Environmental Protection Agency (EPA) has engaged in an illegal campaign against a $20 billion appropriation made by Congress for state green banks like Illinois'. They argue this action violates constitutional principles and statutory regulations governing federal agencies' management of congressional appropriations.
The lawsuit also accuses Citibank of improperly freezing the Greenhouse Gas Reduction Fund (GGRF) following a letter from the FBI. This freeze allegedly contradicts legal requirements mandating fund release upon request by grantees. The coalition asserts that attempts by the federal government to seize these funds represent an abuse of power. A top criminal prosecutor at the Department of Justice resigned over this issue due to insufficient evidence for fund seizure.
A federal judge denied an EPA warrant related to this matter, and two U.S. attorneys' offices have declined involvement due to lack of probable cause.