Opportunity Finance Network Files Lawsuit Against EPA for Funding Suspension
Opportunity Finance Network Challenges EPA Funding Suspension
In a significant legal development, the Opportunity Finance Network (OFN) has filed a lawsuit against the U.S. Environmental Protection Agency (EPA) over what it deems an unjust suspension of federal program funds. Specifically, the action targets the Greenhouse Gas Reduction Fund (GGRF) and aims to restore funding access through the Clean Communities Investment Accelerator (CCIA) program. This program is critical for promoting energy independence across numerous communities in the United States.
The lawsuit is currently before the U.S. District Court for the District of Columbia and asserts that the EPA's actions in managing the GGRF were arbitrary and lacked legal foundation. OFN's complaint argues that the agency wrongfully suspended access to federally obligated grant funds, which were awarded following a thorough and competitive national selection process. The organization contends that the EPA's attempt to terminate the grant was without valid legal justification.
A preliminary injunction issued by the District Court on April 15th revealed another troubling aspect of the EPA's actions. The court noted that the agency failed to demonstrate any evidence of waste, fraud, or abuse regarding the GGRF grantees, despite weeks of opportunity to present such proof. Furthermore, the ruling emphasized that the EPA lacks the authority to unilaterally dismantle a program that Congress has established.
The consequences of the EPA's funding freeze have been significant. OFN was set to announce over $228 million in awards to 26 organizations nationwide, aimed at financing essential projects related to housing, energy distribution, and transportation infrastructure. These projects were expected to create or retain approximately 5,000 jobs. This funding halt represents a substantial setback for communities and initiatives that depend heavily on such financial resources to thrive.
OFN’s CCIA program was designed with careful compliance to environmental goals, and it has a long-standing reputation for accountability and responsible stewardship. The rigorous program work plan and the transparent review processes are evidence of OFN’s commitment to providing effective and efficient financial support for community projects. However, communication with EPA leadership has been stagnant, leading OFN to pursue this legal pathway as the only viable option to oppose the unlawful actions taken against their funding.
For 40 years, OFN has stood as a key player in community development investment, cultivating relationships across various sectors—public, private, and philanthropic. As they navigate this legal battle, the implications stretch beyond the courtroom. The EPA’s suspension creates an arbitrary hurdle to essential resources that many communities desperately require.
About Opportunity Finance Network
Opportunity Finance Network is recognized as the leading network and intermediary in community development investment in the U.S. The organization oversees over $1 billion in total assets and consists of more than 470 community lenders, which include community development loan funds, credit unions, banks, and venture capital funds.
Ensuring access to affordable and responsible financial services for underserved communities has been OFN’s mission, targeting both urban and rural populations, as well as Native communities across the nation. Since its inception in 1986, the organization’s members have successfully originated approximately $124 billion in cumulative financing. This financing has helped in creating or sustaining nearly 3.4 million jobs, supporting over 1 million businesses, and backing the development of nearly 3 million housing units and over 15,000 community projects.
As the lawsuit progresses, all eyes will be on the implications for energy and community development funding across the country, and whether OFN’s efforts can restore crucial financial support to these essential programs.