The Justice Department and F.B.I. are investigating $20 billion in climate funds, despite a top prosecutor’s decision that there was not sufficient evidence of wrongdoing.
Two weeks after their bank accounts were frozen amid a swirl of investigations by the Trump administration, nonprofit organizations that were supposed to receive $20 billion to help curb climate change are still unable to withdraw money, raising concerns about their ability to pay staff.
The accounts were frozen by Citibank, which holds the money, after Lee Zeldin, the Environmental Protection Agency administrator, suggested there was potential fraud and the F.B.I. and Department of Justice launched investigations. Those inquiries went forward despite the determination by a top federal prosecutor that there was not enough evidence to open a grand jury criminal probe. Citibank declined to comment.
Mr. Zeldin has criticized the policy and the structure of the program that was created by Congress and run by the Biden administration. He called for the money to be returned to the federal government, but has presented no evidence that a crime has been committed. This week, he asked for a third, concurrent investigation by his agency’s acting inspector general.
Climate United, which received almost $7 billion under the program to distribute to other organizations, said Tuesday that it is struggling to make payroll, and individual project developers cannot withdraw the money they were promised.
“These relationships take many months to build and are in jeopardy if funding freezes continue,” said Brooke Durham, a Climate United spokeswoman.
On Tuesday, lawyers for Climate United asked the E.P.A. to justify its actions. In a letter to the agency, the lawyers detailed Climate United’s efforts to meet with E.P.A. representatives, adding that the agency canceled a Feb. 25 meeting after learning that Climate United’s lawyers would be present.