For immediate Release: September 25, 2025
Expert contact: Kate DeAngelis, kdeangelis@foe.org
Washington, DC — Today, Judge Carl J. Nichols heard arguments on Friends of the Earth US (FOE-US) and Justiça Ambiental’s (JA, or Friends of the Earth Mozambique) request for a preliminary injunction to prevent the U.S. Export-Import Bank (EXIM) from disbursing nearly $5 billion in financing for the Mozambique LNG project while the Court considers a lawsuit challenging the legality of EXIM’s approval of the financing.
Friends of the Earth US and JA filed the lawsuit against EXIM in the federal district court for the District of Columbia. They are being represented in this matter by the nonprofit organization EarthRights International.
Following the hearing of the request for a preliminary injunction, the legal team of EarthRights International and the plaintiffs explain why this measure is so important:
“We have already begun to hear reports on the ground that the project has resumed some operations. The Court must step in to prevent EXIM from releasing any funds to the project. Numerous injustices that have already occurred related to this project will become far harder to repair once the project resumes operations. The Court owes it to the families who are bearing the heaviest burdens – who have lost their land, access to the sea, and their livelihoods – to consider EXIM’s obligations before it is too late,” said a spokesperson for JA.
“The U.S. Export-Import Bank ignored its own charter and applicable laws to push through this risky nearly $5 billion project financing approval before Congress or the public could weigh in. While many Americans are struggling to make ends meet, the Trump Administration is wasting billions of dollars in taxpayer money on giving handouts to rich fossil fuel companies,” said Kate DeAngelis, Economic Policy Deputy Director for Friends of the Earth US.
“The illegal decision of EXIM’s acting board to subsidize this project, without hearing from the experts on the risks to local people, let alone the serious allegations that project security employees committed a massacre at the project site, is beyond reckless. EXIM needs to do its job and follow the procedures laid out in the Bank Act. The Court should grant a preliminary injunction to stop EXIM’s illegal actions from causing any further irreparable harm,” said Richard Herz of EarthRights International.
The project, which seeks to exploit and liquify natural gas reserves off the coast of Mozambique, has already displaced thousands of local people, will cause significant environmental destruction, and plans to operate in the midst of an ongoing violent conflict and humanitarian crisis. It has been the site of allegations of grave human rights violations, which are the subject of pending investigations in multiple countries.
Despite these serious concerns, the lawsuit alleges that in February 2025, President Trump illegally appointed members of EXIM’s Board of Directors without the consent of the Senate. Just weeks later, in March 2025, EXIM’s unlawfully constituted “acting” board announced final approval of the massive loan to foreign oil company TotalEnergies. EXIM rushed through approval without conducting required environmental reviews, economic assessments, or allowing input by the public and Congress. EXIM failed to follow its own charter and federal law, setting a dangerous precedent for future decisions implicating taxpayer funds.
If successful, the lawsuit would vacate EXIM’s unlawful approval, prevent funds from being disbursed, and force EXIM to comply with its obligations prior to reaching a decision on whether to authorize the transaction. Plaintiffs requested a preliminary injunction to prevent EXIM from disbursing the funds while the Court considers these issues.
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