E.P.A. Offers No New Evidence in Battle Over $20 Billion in Climate Grants

In a legal filing Monday, the Environmental Protection Agency did not provide direct evidence of waste, fraud, or abuse in a $20 billion climate grant program that the agency canceled citing “unacceptable risk.”

For weeks, the grant program has been mired in controversy, with its funds frozen, as the E.P.A. attempted to claw back money that was approved by Congress for clean energy programs. At least three of the grant recipients have filed lawsuits seeking access to the funds they were promised.

Last week, a federal judge ordered the E.P.A. to justify its moves to freeze the funds and cancel the program. The motion stemmed from a lawsuit brought by Climate United, a nonprofit group that was supposed to receive $7 billion under the initiative.

But in response to the judge’s order on Monday, the E.P.A. did not present new direct evidence. Instead, it referred to unidentified media reports as well as a video released last year by Project Veritas, a conservative group known for using covert recordings to embarrass its political opponents.

The video, filmed in a social setting, showed an E.P.A. staff member at the time, talking about the outgoing Biden administration’s efforts to quickly spend federal money. He compared it to throwing “gold bars” off the Titanic. A lawyer for the former staff member has since said he was not referring to the $20 billion grant program.

But Lee Zeldin, the E.P.A. administrator, has seized on the video and has repeatedly suggested the grants were vulnerable to fraud. At the request of the Trump administration, the $20 billion allocated to eight nonprofit groups have been frozen in accounts held at Citibank.