{"id":6158,"date":"2025-02-14T15:04:21","date_gmt":"2025-02-14T15:04:21","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/trumps-funding-freeze-raises-a-new-question-is-the-governments-word-good\/"},"modified":"2025-02-14T15:04:21","modified_gmt":"2025-02-14T15:04:21","slug":"trumps-funding-freeze-raises-a-new-question-is-the-governments-word-good","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/trumps-funding-freeze-raises-a-new-question-is-the-governments-word-good\/","title":{"rendered":"Trump\u2019s Funding Freeze Raises a New Question: Is the Government\u2019s Word Good?"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">As the Trump administration <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/12\/us\/politics\/trump-federal-aid-freeze.html\" title=\"\">continues to withhold billions of dollars<\/a> for climate and clean energy spending \u2014 despite two federal judges ordering the money released \u2014 concerns are growing that the United States government could skip out on its legal commitments.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Typically, when the federal government spends money through a grant or a loan program approved by Congress, it signs a legally binding agreement, <a class=\"css-yywogo\" href=\"https:\/\/www.ecfr.gov\/current\/title-50\/chapter-I\/subchapter-F\/part-80\/subpart-H\/section-80.91\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">known as an obligation<\/a>, to deliver the money. Companies, states and other recipients often spend millions of dollars to buy equipment, hire workers, build facilities and more, fully expecting that the federal government will make good on its promise to reimburse the funds.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">That expectation has been upended by the new administration.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Following an order by President Trump, federal agencies, including the Energy Department, Environmental Protection Agency and the Agriculture Department, have paused funding for a wide range of obligated grants related to the 2022 Inflation Reduction Act and 2021 bipartisan infrastructure law, sweeping laws that provided billions for climate and energy programs.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In just a few weeks, the consequences have begun to be felt nationwide. School districts that planned to use promised federal dollars to buy electric school buses have seen their accounts frozen. Farmers and store owners that spent hundreds of thousands of dollars of their own money to replace old refrigeration systems or install solar panels are finding their requests for reimbursements delayed.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\"><a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/01\/31\/us\/trump-freeze-blocked.html\" title=\"\">Two federal judges<\/a> <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/03\/us\/politics\/white-house-spending-freeze-omb-judge.html\" title=\"\">have explicitly ordered<\/a> the Trump administration to end its freeze and let the money flow again. On Monday, one of those judges, Judge John J. McConnell Jr. in Rhode Island federal court, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/10\/us\/trump-unfreezing-federal-grants-judge-ruling.html\" title=\"\">said the White House was defying his order<\/a> by withholding funds.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Jessica Tillipman, associate dean for government procurement law at the George Washington University Law School, said the administration\u2019s actions had jeopardized the integrity of federal contracting.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThey\u2019ve taken a process that is longstanding, stable and reliable and turned the government into an unreliable business partner,\u201d Ms. Tillipman said. \u201cWho wants to do business with an individual or entity that doesn\u2019t pay its bills, that doesn\u2019t pay for work already performed and, in some instances, completely ceases communications?\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Lawsuits filed in recent days have challenged the Trump administration\u2019s actions, with companies arguing that the government freeze has hurt their businesses.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">On Monday, the sustainable development company Chemonics International <a class=\"css-yywogo\" href=\"https:\/\/www.courthousenews.com\/wp-content\/uploads\/2025\/02\/usaid-contractors-sue-funding-freeze-agency-dismantling.pdf\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">sued the federal government<\/a> alongside other plaintiffs for freezing its work with the U.S. Agency for International Development. The company said in a court filing that the agency owed roughly $103.6 million in outstanding invoices for work performed last year. In a statement, Chemonics said it had been forced to furlough more than 600 staffers in the United States and reduce the hours of 300 employees.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The White House did not respond to a request for comment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">While some agencies have said that the pause is temporary and that they are reviewing funds approved by the Biden administration to make sure they comply with the law, others have gone further.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">On Wednesday, Lee Zeldin, the E.P.A. administrator, said <a class=\"css-yywogo\" href=\"https:\/\/x.com\/epaleezeldin\/status\/1889840040622321778\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">in a video posted on X<\/a> that $20 billion in agency funding meant to help reduce greenhouse gas emissions in low-income communities were a \u201crush job with reduced oversight\u201d under the Biden administration. Mr. Zeldin suggested he would try to claw back money that had already gone out the door.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Zeldin appeared to be referring to the Greenhouse Gas Reduction Fund, a program established by Congress in 2022. Under the program, the Biden administration <a class=\"css-yywogo\" href=\"https:\/\/www.epa.gov\/greenhouse-gas-reduction-fund\/national-clean-investment-fund\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">had awarded<\/a> <a class=\"css-yywogo\" href=\"https:\/\/www.epa.gov\/greenhouse-gas-reduction-fund\/clean-communities-investment-accelerator\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">$20 billion<\/a> to eight organizations and deposited the money in Citibank accounts, with legal limits on how it could be used. In the video, Mr. Zeldin said, \u201cThe financial agent agreement with the bank needs to be instantly terminated.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe days of irresponsibly shoveling boatloads of cash to far-left activist groups in the name of environmental justice and climate equity are over,\u201d Mr. Zeldin said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Zealan Hoover, who directed the implementation of Inflation Reduction Act programs at the E.P.A. under the Biden administration, said that the arrangement with Citi had been thoroughly vetted by the agency\u2019s inspector general at the time, and that the federal government has been using private banks as financial agents since the 1800s.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">If either E.P.A. or Citi cuts off access to the funds, that could trigger further lawsuits. Some of the program\u2019s recipients have already made their own agreements to lend money to other organizations for clean energy and energy efficiency projects.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Hoover said that the fact that agencies were defying courts on the spending freeze \u2014 and threatening to claw back obligated funding \u2014 was a \u201cmajor area of concern.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIt really calls into question the full faith and credit of the U.S. government as a counterparty to financial agreements,\u201d he said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Aram Gavoor, a law professor at George Washington University, said many of the questions being argued in the courts aren\u2019t clear-cut.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-5\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cThere isn\u2019t an immediate Supreme Court case or series of circuit cases that are recent that make it very clear what the outcome of litigation will be,\u201d he said, adding that the administration\u2019s actions and resulting lawsuits had \u201cinjected a strong degree of regulatory uncertainty\u201d into federal contracting.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">At the Energy Department, officials have ordered an internal review of potentially billions of dollars worth of climate and infrastructure spending that was awarded by the Biden administration after the Nov. 5 presidential election, according to a memo sent to agency staff.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The memo, dated Feb. 7, says that all Energy Department actions during the \u201ctransition period\u201d before President Trump\u2019s inauguration would be reviewed, and that financial transactions that used funds from the Inflation Reduction Act or bipartisan infrastructure law would have to be \u201creviewed and approved\u201d by senior political appointees.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Christopher S. Johns, the agency\u2019s deputy chief financial officer, wrote in the memo that this review process followed recent district court orders on federal funding. But the document, which was <a class=\"css-yywogo\" href=\"https:\/\/www.eenews.net\/articles\/doe-project-funding-needs-trump-lieutenants-blessing\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">first reported by E&amp;E News<\/a>, did not say what would happen if political appointees reviewed certain transactions and did not approve of them.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">It is not uncommon for a new administration to review existing programs, experts said. But it is unusual for agencies to halt a wide swath of obligated grants.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-7\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Republicans criticized those moves at the time. Vivek Ramaswamy <a class=\"css-yywogo\" href=\"https:\/\/www.eenews.net\/articles\/ramaswamy-blasts-6-6b-ev-loan-as-shot-across-the-bow\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">called the Rivian loan<\/a> a \u201cshot across the bow\u201d to Tesla, a rival electric carmaker owned by Elon Musk. In December, three House Republicans <a class=\"css-yywogo\" href=\"https:\/\/d1dth6e84htgma.cloudfront.net\/12_04_2024_Letter_to_DOE_LPO_a32b1c36aa.pdf\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">sent a letter<\/a> urging the Energy Department to \u201ccease its campaign to quickly distribute federal funding before the incoming administration takes office.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Experts said it wouldn\u2019t be easy for a new administration to revoke loans that have been closed. Under the Biden administration, the Energy Department\u2019s loan office closed roughly $60.6 billion in loans and financial guarantees, while another $47 billion were conditional commitments that still need final approval.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Kennedy Nickerson, a former policy adviser to the loan office and now a vice president for energy at Capstone, a research firm, said it would be \u201clegally challenging and time-consuming\u201d for the Trump administration to try to cancel final loan agreements.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-8\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Attempts to go after finalized loans could deter companies from doing business with the federal government, former agency officials said. Companies typically spend millions of dollars to go through an exhaustive vetting process by the loan program office. <\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIf we get to conditional commitment with a loan program recipient, that\u2019s the government\u2019s credibility,\u201d David Turk, the deputy secretary of energy during the Biden administration, said in a statement. \u201cThat\u2019s the American people\u2019s credibility on the line to follow through and make sure that we are providing that certainty for investment.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Trump\u2019s energy secretary, Chris Wright, has said that he wants to use the hundreds of billions of dollars in remaining loan authority to advance the president\u2019s agenda of affordable, reliable electricity. <\/p>\n<p class=\"css-at9mc1 evys1bk0\">In an interview with Bloomberg on Tuesday, Mr. Wright was asked whether he might cancel loans that were already in place. \u201cWe will follow the law,\u201d he replied.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">At least one project was exempted from the administration\u2019s freeze.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Montana Renewables <a class=\"css-yywogo\" href=\"https:\/\/www.energy.gov\/lpo\/articles\/doe-announces-167-billion-montana-renewables-significantly-expand-us-sustainable\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">had secured a $1.67 billion loan guarantee<\/a> from the Biden administration to expand a plant in Great Falls, Mont., that converted vegetable oils and fats into diesel and jet fuel. Initially, the Trump administration had blocked the first scheduled $782 million payment while it reviewed the loan.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-9\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">But Senator Steve Daines, Republican of Montana and an ally of President Trump, said in a statement that he had pressed the White House to approve the payment because the project would \u201cprovide high-paying jobs, boost our economy and provide efficient biofuel production.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Energy Department officials didn\u2019t explain why they allowed the Montana Renewables loan to go forward. Montana Renewables also declined to comment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe Department of Energy is continuing to conduct a departmentwide review of all funding, including grants and loans, to ensure all activities are consistent with the law and in accordance with President Trump\u2019s executive orders and priorities,\u201d said Andrea Woods, an agency spokeswoman. \u201cAs part of this review process, the Department approved the scheduled disbursement of a loan for the expansion of a biofuels facility in Great Falls, Montana.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     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federal<\/p>\n","protected":false},"author":1,"featured_media":6159,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[185,181,182,2164,193,111],"class_list":["post-6158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","tag-alternative-and-renewable-energy","tag-global-warming","tag-greenhouse-gas-emissions","tag-inflation-reduction-act-of-2022","tag-suits-and-litigation-civil","tag-united-states-politics-and-government"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trump\u2019s Funding Freeze Raises a New Question: Is the Government\u2019s Word Good? - World News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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