Minnesota Attorney General Keith Ellison has filed a lawsuit to preserve federal funding aimed at advancing clean-energy projects in Minnesota, following actions by the Trump administration that have blocked the flow of funds designated for greenhouse gas reduction. Ellison, leading a coalition of four state attorneys general, is challenging what he calls an illegal effort to withhold congressionally approved funds intended for clean energy development.
The lawsuit, filed on behalf of the Minnesota Climate Innovation Finance Authority (MnCIFA), seeks to ensure that federal dollars flow as planned to Minnesota’s public “green bank,” which was established to support clean-energy and greenhouse gas reduction initiatives. MnCIFA is a key player in the state’s efforts to meet ambitious climate goals, including being 100% carbon-free by 2040 and achieving net-zero greenhouse gas emissions by 2050.
The legal action follows a broader campaign led by Ellison alongside California Attorney General Rob Bonta, Illinois Attorney General Kwame Raoul, and Maine Attorney General Aaron M. Frey. The coalition argues that the Trump administration, through the Environmental Protection Agency (EPA), has unlawfully blocked $20 billion in federal funding meant for clean-energy projects in Minnesota and other states. This funding was initially authorized under the Inflation Reduction Act of 2022, which was passed by Congress and signed by President Biden.
“This lawsuit is about standing up for Minnesotans and ensuring that the state can continue moving forward with clean-energy projects that will benefit our economy and our environment,” Ellison said in a statement. “The Trump administration cannot simply undo laws passed by Congress and signed by the President. Our coalition is committed to ensuring that these funds are released as required by law.”
At the heart of the case is MnCIFA, which was created by the Minnesota Legislature in 2023 to serve as a public green bank. The organization works to stimulate clean-energy projects and overcome market barriers to achieving state climate goals. Since early 2024, MnCIFA has been soliciting project proposals but has been hindered by the freezing of federal funds held by Citibank, which was tasked with managing the disbursement of the Greenhouse Gas Reduction Fund (GGRF).
In February 2025, the EPA initiated actions to block the funds, which Ellison and the coalition argue are illegal. The attorneys general assert that the EPA’s actions, which seem to be politically motivated by opposition to the Inflation Reduction Act, violate both constitutional and statutory laws governing federal funding.
The coalition also named Citibank in the lawsuit for its role in freezing the funds. According to Ellison and his colleagues, Citibank improperly complied with a demand from the FBI to withhold the GGRF funds, despite legal requirements to release them to the authorized grantees. A letter from the attorneys general to Citibank in early March demanded the immediate unfreezing of the funds, but the situation remains unresolved.
“These funds were lawfully allocated by Congress to support clean-energy projects, and the EPA and Citibank are unlawfully standing in the way of their proper distribution,” Ellison added. “We will continue to fight for the rule of law and to ensure that the Trump administration’s illegal actions do not succeed.”
The legal battle also follows a series of high-profile developments, including a failed attempt by the EPA to seize the funds held by Citibank. A federal judge recently rejected the EPA’s request for a warrant, and multiple U.S. Attorney offices have declined to pursue the case due to a lack of evidence.
With the funding now at risk, the attorneys general and their allies in the green bank community are seeking to ensure that the funds are released in order to continue critical work on climate change and clean-energy development.
“We will not let this unlawful interference stand in the way of our clean-energy future,” Ellison said. “Minnesota and other states need these resources to fight climate change and reduce emissions. The law is clear, and we will continue to push for accountability and the proper release of these funds.”
