The Environmental Protection Agency (EPA) has announced the termination of $20 billion in grants previously designated for climate and clean-energy initiatives. According to Administrator Lee Zeldin, the grants were suspended due to concerns about oversight, allocation processes, and program integrity.
In a public statement, Zeldin revealed that the $20 billion had been placed with an external financial institution in a manner that limited government oversight. The funds were intended to be distributed through eight intermediary nonprofit organizations, which Zeldin described as politically connected and, in some cases, inexperienced.
The funding has now been frozen, and both the Department of Justice and FBI are investigating the matter. The grants were part of a program established under the 2022 Inflation Reduction Act, previously known as the Greenhouse Gas Reduction Fund, commonly referred to as the green bank. This initiative included two projects — one valued at $14 billion and another at $6 billion — intended to support nonprofits, community development banks, and other organizations focused on disadvantaged communities.
The eight nonprofits originally chosen to receive the funding included the Coalition for Green Capital, Climate United Fund, Power Forward Communities, Opportunity Finance Network, Inclusiv, and the Justice Climate Fund. These groups have partnerships with various organizations such as Rewiring America, Habitat for Humanity, and the Community Preservation Corporation.
Zeldin referenced concerns over specific grant allocations, including a reported $2 billion awarded to a group with minimal prior revenue and another instance where a former EPA official’s previous employer received $5 billion after the individual helped develop the related legislation.
“These are just two examples of what appears to be a much larger problem,” Zeldin stated. “Today, I am officially terminating these grant agreements in their entirety. The EPA has full authority to take this action, and there was no other viable option.”
He cited serious concerns about fraud, waste, and misalignment with agency priorities as the primary reasons for canceling the grants. Zeldin emphasized that the decision aligns with his commitment to ensuring fiscal responsibility and transparency.
“The EPA will once again be an exceptional steward of taxpayer dollars,” he concluded.
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