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An Appalachia-based green bank is at risk of losing $300 million in grant funding earmarked for local community financial institutions. That鈥檚 after the Trump administration moved to cancel billions of dollars in climate grants awarded by the Biden administration.
The EPA has made attempts to claw back these funds, saying that the grantees were rife with .
In a statement, leaders from the Green Bank for Rural America underlined the region鈥檚 funding need for projects aimed at reducing pollution. The organization says it will turn to private fundraising as needed to replace EPA grant losses.
The stalled federal funds had already been committed, leaders said, to community lenders throughout the region that requested support from the Green Bank.
GBRA released a statement this month on its path forward. 鈥淎 significant portion of these funding requests came from lenders working to rebuild infrastructure, businesses, and local economies in the wake of Hurricane Helene鈥檚 devastating impact in 2024,鈥� GBRA鈥檚 statement said. 鈥淭hese investments would provide the good jobs, local wealth-building, and economic stability that Appalachian and rural communities need.鈥�
These funds were part of $20 billion in grants from the EPA鈥檚 Greenhouse Gas Reduction Fund, which is frozen by the administration. The Coalition for Green Capital, Climate United Fund, and other groups sued the EPA early this month, hoping to get the accounts unfrozen. Late last week, a federal judge of the grants but the funds which are held by Citibank, still remain frozen.
Locally, the $300 million was supposed to fund projects like clean transportation, home energy efficiency upgrades and community solar energy. The Green Bank hoped to award the funds to nonprofit banks specifically in low-income parts of the region where regular banks might not invest in similar projects. s in 582 Appalachian counties, including much of Western North Carolina, would be eligible.
The EPA declined a request for comment from BPR, citing pending litigation.
