The first units for costumers roll off the production line building the zero-emission Nikola Tre BEV truck at the Nikola truck manufacturing facility in Coolidge, Arizona, on April 27, 2022. News Nikola Unveils Zero Emission Truck Manufacturing Facility In Coolidge
Los Angeles, California – A federal freeze on $250 million in green energy funding threatens California’s push to replace diesel trucks with electric ones at the Ports of Los Angeles and Long Beach, the nation’s busiest port complex.
The funding, part of a broader $20 billion green energy initiative under the Inflation Reduction Act, was set aside for a program by the Maryland-based nonprofit Climate United. The initiative would have provided affordable leases for around 500 electric heavy-duty trucks, primarily for small operators serving the ports.
However, the grant is stalled due to a legal battle involving the U.S. Environmental Protection Agency under President Donald Trump, Citibank—which holds the funds—and Climate United. The pause is part of a sweeping rollback by the Trump administration, which has accused the green funding program of “misconduct, conflicts of interest, and potential fraud” without providing specific evidence.
The hold is already having consequences. “We don’t have any money at all, not even operational money,” said Brooke Durham, spokesperson for Climate United. “All of the projects are in limbo.”
Communities near the ports — including Wilmington, San Pedro and Long Beach — have long pushed for cleaner air, citing health issues caused by diesel emissions. Residents have reported high rates of asthma, headaches, and other respiratory problems. Paola Vargas, a Carson resident and activist, called the effort “a literal case of life and death.”
Matt Schrap, CEO of the Harbor Trucking Association, said the grants were critical for small trucking operators, who face enormous cost barriers to switching to electric. A new electric big rig can cost up to $400,000, double the cost of a diesel truck, and there are limited financing options available.
The EPA previously threatened to terminate the grant contracts, and lawsuits quickly followed from climate groups. A federal judge initially ordered Citibank to release some funds, but an appeals court blocked the ruling. Meanwhile, the EPA claims it has no information about sub-recipient agreements under what it calls the “Gold Bar” scheme—referencing a Project Veritas video that has fueled skepticism of the program.
Beyond California, other Climate United projects have also been frozen, including more than $90 million intended for solar energy in tribal and rural communities.
With the funding locked and no clear resolution in sight, California’s landmark push for zero-emissions trucking is stalled — and its portside residents are left breathing the consequences.
