March 20, 2025 (SAINT PAUL) – Minnesota Attorney General Keith Ellison has taken legal action against the Trump administration, leading a coalition of four attorneys general in an effort to safeguard federal grant funding designated for clean-energy initiatives in Minnesota. The lawsuit, filed on behalf of the Minnesota Climate Innovation Finance Authority (MnCIFA), aims to ensure that the state receives its share of federal dollars intended to support renewable energy projects and greenhouse gas reduction efforts.
MnCIFA, established as a public “green bank” by the State of Minnesota in 2023, plays a pivotal role in advancing the state’s environmental goals. The entity seeks to eliminate financial barriers that hinder the growth of clean-energy projects and accelerate Minnesota’s progress toward its commitment to becoming 100% carbon-free by 2040 and achieving net-zero greenhouse gas emissions by 2050.
Legal Battle Against the Trump Administration and Citibank
Attorney General Ellison joined forces with California Attorney General Rob Bonta, as well as the attorneys general of Illinois and Maine, in filing the lawsuit. The litigation challenges the federal government’s move to obstruct the disbursement of funds from the Greenhouse Gas Reduction Fund (GGRF), which was created as part of the 2022 Inflation Reduction Act. The coalition is also suing Citibank, which holds the funds on behalf of the federal government, for its alleged failure to release the money as required by law.
“I’m leading this coalition of attorneys general in opposing yet one more illegal power grab by the Trump administration because it is our job to stand up for the Constitution and the rule of law when others try to run roughshod over it,” said Attorney General Ellison. “In 2022, Congress duly passed and the president duly signed the Inflation Reduction Act, which allocated these funds. If the current president wants to repeal the act and the funding that goes along with it, he must ask Congress to do so. No president or federal agency can unilaterally undo an act of Congress.”
Ellison also condemned Citibank’s decision to freeze the funds, stating that it improperly complied with a government request without legal justification. The lawsuit seeks to force Citibank to release the funds immediately.
Allegations of Unlawful Government Interference
According to the complaint, since February 2025, the Environmental Protection Agency (EPA) has engaged in “a highly irregular and illegal campaign” to obstruct the $20 billion appropriation Congress made for clean-energy investments. The plaintiffs argue that the administration’s actions are politically motivated, stemming from the president’s opposition to the Inflation Reduction Act rather than legitimate legal concerns.
Ellison and the coalition allege that the administration’s attempt to terminate the grants violates fundamental constitutional principles, the separation of powers, and numerous statutory and regulatory provisions governing the management of federal appropriations. The lawsuit seeks to reinstate the funding and prevent the government from further interfering with its distribution.
Citibank’s Role in the Dispute
The lawsuit also targets Citibank, which was instructed by the FBI in a February 17, 2025, letter to freeze the GGRF funds. Despite legal requirements mandating that the bank release funds upon request from approved grantees, Citibank complied with the federal demand, effectively blocking Minnesota and other states from accessing the financial resources needed for their projects.
Ellison, joined by attorneys general from Colorado, Maine, Maryland, and New York, formally demanded in a March 7 letter that Citibank unfreeze the funds. However, the bank failed to comply, leading to its inclusion as a defendant in the lawsuit.
The legal filing also reveals that the federal government attempted to seize the funds, prompting the resignation of a senior Department of Justice prosecutor who refused to proceed due to insufficient legal grounds. A federal judge has since denied the EPA’s request for a seizure warrant, and two separate U.S. attorney’s offices have declined to take up the case due to a lack of probable cause.
Immediate Impacts on Minnesota’s Clean Energy Projects
On March 11, 2025, the EPA officially terminated the grants that fund MnCIFA and other state green banks, without providing an explanation. The loss of funding threatens Minnesota’s ability to support clean-energy startups, finance renewable energy infrastructure, and assist communities in transitioning to sustainable energy solutions.
Ellison and the plaintiff states argue that the grant terminations were unlawful and are seeking judicial intervention to reinstate the funds.
“This is about protecting Minnesota’s future,” said Ellison. “We have the right to these funds under federal law, and we will not allow unlawful political interference to derail our state’s progress toward clean energy and environmental sustainability.”
The case is expected to draw national attention, as it could set a precedent for how federal grant programs are managed under future administrations. If successful, the lawsuit will not only restore funding for Minnesota’s clean-energy projects but also reaffirm the principle that presidents cannot unilaterally block funding that has been lawfully appropriated by Congress.
Disclaimer – Our editorial team has thoroughly fact-checked this article to ensure its accuracy and eliminate any potential misinformation. We are dedicated to upholding the highest standards of integrity in our content.