While the Trump administration continues to retain billions of dollars for climate and clean energy expenses – despite two federal judges who ordered money released – concerns increases so that the US government can skip its legal commitments .
As a general rule, when the federal government spends money through a grant or a loan program approved by the congress, it signs a legally binding agreement, known as an obligationTo deliver the money. Companies, states and other beneficiaries often spend millions of dollars to buy equipment, hire workers, build installations and more, fully expecting the federal government to make its promise to repay the funds.
This expectation was upset by the new administration.
Following a prescription from President Trump, federal agencies, including the Department of Energy, the Environmental Protection Agency and the Department of Agriculture, interrupted funding for a wide range of compulsory subsidies linked to the Inflation Act of Inflation of 2022 and 2021 Bipartisan Infrastructure Law, the laws that have been provided that provided billions for climate and energy programs.
In a few weeks, the consequences began to feel nationally. School districts that planned to use federal dollars promised to buy electric school buses have seen their accounts frozen. Farmers and owners of stores who spent hundreds of thousands of dollars on their own money to replace old refrigeration systems or install solar panels find their requests for reimbursements.
Two federal judges explicitly ordered the Trump administration to end his gel and let the money flow again. One of these judges on Monday, Judge John J. McConnell Jr. before the Rhode Island Federal Court, said the White House defeated its order by retaining the funds.
Jessica Tillipman, Doyene Associate for Public Markets Law with the George Washington University Law School, said that the actions of the administration had endangered the integrity of federal contracts.
“They have followed a long -standing, stable and reliable process and have transformed the government into a unreliable trading partner,” said Ms. Tillipman. “Who wants to do business with an individual or an entity who does not pay his invoices, who does not pay for the work already done and, in some cases, completely ceases communications?”
The proceedings filed in recent days have challenged the actions of the Trump administration, the companies arguing that the Government freeze has affected their activities.
Monday, the Sustainable Development Company Chemonics International continued the federal government In addition to other complainants for frozen their work with the American agency for international development. The company said in a legal file that the agency owed around $ 103.6 million in current invoices for the work carried out last year. In a statement, the Chemonics said it was forced to compete more than 600 staff members in the United States and reduce the hours of 300 employees.
The White House did not respond to a request for comments.
While some agencies said that the break was temporary and examine the funds approved by the Biden administration to ensure that they comply with the law, others have gone further.
Wednesday, Lee Zeldin, EPA administrator, said In a video published on X This $ 20 billion financing in agency intended to reduce greenhouse gas emissions in low -income communities was a “advanced work with reduced surveillance” within the framework of the Biden administration. Mr. Zeldin suggested that he would try to recover money that had already been released.
Mr. Zeldin seemed to refer to the greenhouse gas reduction fund, a program established by the congress in 2022. Within the framework of the program, the Biden administration had awarded $ 20 billion Eight organizations and deposited money in Citibank accounts, with legal limits on how it could be used. In the video, Mr. Zeldin said: “The financial agent agreement with the bank must be placed instantly.”
“The irresponsible days of cash cargoes of cash cargoes to distant groups of activists in the name of environmental justice and climate equity are over,” said Zeldin.
Zealan Hoover, who directed the implementation of the programs of the law on the reduction of inflation to the EPA within the framework of the Biden administration, said that the arrangement with Citi had been completely verified by the Inspector General of the Agency at the time and that the federal government has used private banks as financial agents since the 1800s.
If EPA or CITI removes access to funds, this could trigger new proceedings. Certain recipients of the program have already concluded their own agreements to lend money to other organizations for clean energy and energy efficiency projects.
Mr. Hoover said the fact that agencies would challenge the courts freezing – and threatened to retreat compulsory funding – was a “major concern”.
“This questions full faith and credit of the United States government as a counterpart of financial agreements,” he said.
Aram Gavoor, professor of law at George Washington University, said many of the questions subject to the courts are not clear.
“There is no immediate case of the Supreme Court or cases of circuits which are recent which very clearly indicate that the result of the dispute will be,” he said, adding that the actions of the administration and the actions of the administration and the actions of the administration and The resulting proceedings had “injected a high degree of regulatory uncertainty” into federal contracts.
In the energy department, officials ordered an internal examination of potentially billions of dollars in climate and infrastructure expenses which were granted by the Biden administration after the presidential election of November 5, according to a memo sent to agency staff.
The memo, dated February 7, indicates that all the actions of the energy department during the “transition period” before the inauguration of President Trump would be examined, and that the financial transactions which used funds from the Act on Reduction of inflation or bipartite infrastructure law should be “examined and approved” by people appointed higher political.
Christopher S. Johns, assistant financial director of the agency, wrote in the note that this examination process followed the recent orders of the district court on federal funding. But the document, which was Reported for the first time by E & E NewsDid not say what would happen if the people named by the policies reviewed certain transactions and did not approve them.
It is not uncommon for a new administration to examine existing programs, experts said. But it is unusual for agencies to stop a wide strip of compulsory subsidies.
The Republicans criticized these movements at the time. Vivek Ramaswamy Called the Rivian loan A “shot across the arc” against Tesla, a rival car manufacturer belonging to Elon Musk. In December, three republicans of the house sent a letter Undering the energy department to “stop its campaign to quickly distribute federal funding before the inbound administration took office”.
Experts said it would not be easy for a new administration to revoke loans that have been closed. Under the Biden administration, the loan office of the energy department closed approximately $ 60.6 billion in loans and financial guarantees, while additional $ 47 billion were conditional commitments that still need ‘final approval.
Kennedy Nickerson, former political advisor to the Loan Office and now Vice-President of Energy in Capstone, a research firm, said that it would be “legally difficult and long” for the Trump administration to try to Cancel the final loan agreements.
Attempts to go after the loans could dissuade companies from doing business with the federal government, agency officials said. Companies generally spend millions of dollars to go through a process of exhaustive verification by the office of the loan program.
“If we come to conditional engagement with a loan program beneficiary, it is the credibility of the government,” said David Turk, assistant energy secretary during the Biden administration, in a statement. “It is the credibility of the American people on the line to follow and ensure that we provide this certainty of investment.”
Trump’s energy secretary Chris Wright said that he wanted to use the hundreds of billions of dollars as a remaining loan authority to advance the order of affordable and reliable electricity president.
In an interview with Bloomberg on Tuesday, Mr. Wright was asked if he could cancel loans already in place. “We will follow the law,” he replied.
At least one project was exempt from the administration freezing.
Montana Renewables had obtained a loan guarantee of $ 1.67 billion From the Biden administration to enlarge a plant to Great Falls, Mont., Which converted vegetable oils and diesel and jet fuel fats. Initially, the Trump administration had blocked the first planned payment of $ 782 million while he examined the loan.
But Senator Steve Daines, Republican of Montana and ally of President Trump, said in a statement that he had pressed the White House to approve the payment because the project “would provide well -paid jobs, would increase our economy and provide production effective biofuel. “
The managers of the energy department did not explain why they allowed the loan of Montana renewals to move forward. The Montana Renewables also refused to comment.
“The Ministry of Energy continues to examine at the level of all funding, including subsidies and loans, to ensure that all activities are in accordance with the law and in accordance with orders and executive priorities President Trump, “said Andrea Woods, agency spokesperson. “Within the framework of this examination process, the ministry approved the planned disbursement of a loan for the expansion of a biofuels installation in Great Falls, Montana.”
