The Environmental Protection Agency’s decision to terminate $20 billion in clean energy funding agreements—including $1.5 billion designated for tribal communities—has sparked lawsuits, political backlash, and widespread uncertainty about the future of planned clean-energy projects. The cut, which affects programs under the National Clean Investment Fund (NCIF) and Clean Communities Investment Accelerator (CCIA), was announced in a video and press release by EPA Administrator Lee Zeldin. As lawsuits escalate and political pressure mounts, our Bethesda, MD commercial litigation lawyer team continues to monitor the unfolding legal implications for nonprofits, tribal organizations, and impacted communities.
Zeldin referred to the previous administration’s grant structure as a “gold bar scheme,” alleging the funds were placed outside EPA’s proper oversight. Within days of the announcement, two major NCIF grant recipients—Climate United Fund and the Coalition for Green Capital—filed federal lawsuits against the EPA and Citibank, accusing them of unlawfully freezing nearly $12 billion in approved funds. Climate United, which received $6.97 billion, argued that the freeze has directly harmed the borrowers and communities it serves, including tribal governments with pre-construction solar projects already underway. The Coalition for Green Capital, awarded $5 billion, likewise filed suit alleging Citibank breached its contract by refusing to disburse funds.
The termination also delivers a major blow to tribal clean-energy development. Indian Country stood to receive $1.5 billion for distributed energy systems, net-zero buildings, and zero-emissions transportation across 27 states. The Native CDFI Network had planned to distribute $400 million to tribal lenders, with projects identified and ready to launch. Climate United’s commitments included $63 million in pre-construction financing for solar installations in partnership with tribal governments in Oregon and Idaho. Dozens of projects, including energy-efficiency upgrades and community-led renewable initiatives, are now halted indefinitely. Leaders across multiple tribal nations expressed shock at the sudden reversal, emphasizing the deep impact the freeze will have on energy sovereignty and long-term infrastructure planning.
How Litigation Helps Organizations Respond To Federal Funding Disputes
Federal funding disputes like these underscore why organizations often turn to our Bethesda commercial litigation lawyers for guidance. When agencies abruptly terminate agreements or freeze approved funding, affected parties must quickly assess their legal options, including breach-of-contract claims, administrative appeals, or injunction requests. Cases involving large-scale grants often require the experience of our commercial litigation lawyers, especially when government entities and financial institutions play central roles.
In situations where millions—or billions—of dollars in project financing are suddenly withheld, affected organizations must take swift steps to protect their contractual rights, preserve evidence, document project impacts, and evaluate whether an agency’s stated justification aligns with statutory requirements. Litigation, when necessary, can help halt unlawful actions, compel disclosures, or recover damages tied to delayed or canceled initiatives. For nonprofits, tribal organizations, and clean-energy developers, these disputes can affect not only finances but also community partnerships, long-term planning, and public commitments.
At Eric Siegel Law, our business dispute lawyers assist clients facing contract terminations, federal funding disputes, and administrative issues. Whether a nonprofit has had its funding unexpectedly frozen or a business partner has failed to honor contractual obligations, our corporate litigation lawyers are positioned to help evaluate the legal landscape and pursue the strongest available remedies.
Our Bethesda commercial litigation attorneys bring practical insight into how federal agencies operate and how organizations can respond when decisions place critical projects at risk. If your organization is facing a funding dispute, contract interruption, or government action that threatens your operations, contact Eric Siegel Law today. With over 30 years of dedicated legal experience, we are prepared to help you protect your interests and pursue the relief you deserve. And because we offer 24/7 live call answering services, our clients are able to contact us at any time of day or night. So don’t wait—reach out today to learn how we can help you.