WASHINGTON–With the Greenhouse Gas Reduction Fund (GGRF) and with nearly $2 billion in grants to credit unions facing the budget axe, a federal judge is challenging the Justice Department to prove its allegations of fraud.

“Here we are, weeks in, and you’re still unable to proffer me any evidence with regard to malfeasance,” Judge Tanya Chutkan of the United States District Court for the District of Columbia told Justice Department attorneys during a hearing as part of the case brought by Climate United, which is seeking to release frozen Greenhouse Gas Reduction Fund (GGRF) award funds.

As the CU Daily reported here, Inclusiv has also  filed a lawsuit against the Environmental Protection Agency (EPA) and Citibank, seeking declaratory and injunctive relief against what it alleged is the  EPA’s “baseless attempt to terminate a program created and funded by Congress.”

Inclusiv was selected for a $1.87 billion award in April of 2024 to distribute the grant funds to credit union applicants.

In the Climate United case, Judge Chutkan said the Justice Department has offered “different positions” to justify its actions without actually presenting evidence of waste, fraud or abuse. 

Other Questions

Chutkan has also questioned whether the EPA acted lawfully in freezing the money in Citibank accounts without a court order, Inclusiv reported.

Inclusiv added that the EPA has been moving away from its claims of malfeasance on the part of GGRF recipients, arguing instead that it has an inherent “right to breach” contracts it enters into.