The US Environmental Protection Agency (EPA) has announced $4.3 billion in grants to reduce climate pollution across the country with community-driven solutions.

The independent agency said on Monday that it selected 25 applications through the competitive Climate Pollution Reduction Grants programme to tackle climate crisis, improve air quality and advance environmental justice.

"When estimates provided by all selected applicants are combined, the proposed projects would reduce greenhouse gas pollution by as much as 971 million metric tons of carbon dioxide equivalent by 2050, roughly the emissions from 5 million average homes' energy use each year for over 25 years," the agency said in a statement.

The move, which is part of the Biden-Harris administration's Investing in America agenda, aims to accelerate clean energy transition in the US, it added.

The 25 selected applications will fund projects in 30 US states, including one Tribe, that aim to reduce greenhouse gas pollution in six sectors — transportation, electric power, commercial and residential buildings, industry, agriculture/natural and working lands, and waste and materials management.

The EPA said it will announce up to an additional $300 million in selections under the Climate Pollution Reduction Grants programme for Tribes, Tribal consortia and territories later this summer.

"As climate change continues to fuel more extreme impacts on communities across the country, we are using every tool in our toolbox to reduce pollution, lower families' energy costs, advance environmental justice, and make our communities more resilient," President Joe Biden said in a statement released by the White House.

"When I think of climate change, I think about jobs — good-paying, union jobs that put Americans to work, rebuild our nation's aging infrastructure, and support our transition to a clean energy future," he added.

"Today and every day, I will continue working to protect American families from harmful pollution and build a clean energy future."