OFN Takes Legal Action Against EPA's Illegal Suspension of Federal Program Funds

WASHINGTON, April 21, 2025 /PRNewswire/ -- Opportunity Finance Network (OFN) has filed a lawsuit against the U.S. Environmental Protection Agency (EPA) over its handling of the Greenhouse Gas Reduction Fund (GGRF) and to restore access to federally obligated funding through the Clean Communities Investment Accelerator (CCIA) program, which would promote energy independence in communities across the country. The lawsuit, which was filed in the U.S. District Court for the District of Columbia, argues that the EPA's actions were arbitrary and capricious, and unlawfully suspended access to legally obligated grant funds that were awarded through a rigorous, competitive, and transparent national process. The lawsuit alleges that the EPA attempted to terminate the grant without a legal basis. Additionally, the lawsuit argues that these actions were in violation of the Constitution, relevant statutes and regulations, and are unsupported by the grant's terms and conditions. 

The District Court, in its April 15 Preliminary Injunction order, stated that the EPA failed to provide evidence of GGRF grantee waste, fraud, or abuse despite having weeks to do so, and "lacks the authority to effectively unilaterally dismantle a program that Congress established." Therefore, OFN is seeking the same declaratory and injunctive relief that the District Court granted to other GGRF funding recipients. Prior to the unlawful funding freeze, OFN was poised to announce more than $228 million in awards to 26 organizations across the country that would have financed housing, distributed energy, and transportation infrastructure projects in more than 30 states, and created or retained an estimated 5,000 jobs.

OFN designed, and the EPA approved, a CCIA program consistent with its commitment and long track record of impact, compliance, and responsible stewardship. From the rigorous and competitive review process, the publicly available program work plan, and persistent attempts to meet with the current EPA administration, OFN has consistently upheld high standards of accountability and transparency in line with the Administration's stated goals. OFN has repeatedly expressed willingness to discuss these shared goals with EPA leadership, and despite multiple requests, the agency has not engaged. This has forced OFN to pursue a legal course of action.

For 40 years, OFN has been a trusted investment partner across public, private, and philanthropic sectors, investing in communities to catalyze change and create economic opportunities across America. While OFN is pursuing legal action, the emphasis of litigation involving these funds extends beyond the courts or even Washington, D.C.—the EPA's unlawful actions have created an arbitrary obstruction to essential resources that communities urgently need.

About Opportunity Finance Network

Opportunity Finance Network (OFN) is the nation's leading network and intermediary focused on community development investment, managing over $1 billion in total assets and membership of more than 470 community lenders, which includes community development loan funds, credit unions, green banks, banks, minority depository institutions, and venture capital funds. Our network of community lenders work to ensure communities underserved by mainstream finance have access to affordable, responsible financial products and services, with a deep focus on serving rural, urban, and Native communities across the United States. OFN is a trusted investment partner to the public, private, and philanthropic sectors – foundations, corporations, banks, government agencies, and others – and, for 40 years, has helped partners invest in communities to catalyze change and create economic opportunities for all.

Since its founding in 1986, OFN members have originated $124 billion in cumulative financing, helping to create or maintain nearly 3.4 million jobs, start or expand over 1 million businesses and microenterprises, and support the development or rehabilitation of nearly 3 million housing units and over 15,000 community facility projects.

SOURCE Opportunity Finance Network