The Environmental Protection Agency (EPA) has announced a significant move to terminate $20 billion in grants that were allocated for climate and clean-energy projects under the Biden administration. This decision was revealed by EPA Administrator Lee Zeldin on Tuesday.
In a video shared on social media, Zeldin expressed concerns about how the funds were being managed. He claimed that these taxpayer dollars were held at an external financial institution to limit government oversight. According to Zeldin, the grants were being distributed through eight nonprofit organizations that he described as politically connected, unqualified, and in some cases, newly established.
Zeldin stated that the funds had been frozen and noted that the Department of Justice and the FBI are currently investigating the matter. He emphasized that the termination of the grants was necessary due to issues surrounding program integrity, the award process, and concerns about potential fraud and waste.
The grants were part of a program approved by Congress in the 2022 Inflation Reduction Act, originally known as the Greenhouse Gas Reduction Fund. This initiative aimed to provide financial support to nonprofits and community development banks for projects benefiting disadvantaged communities. The eight organizations that were set to receive the funds included the Coalition for Green Capital and the Justice Climate Fund, among others.
Zeldin highlighted that one of the organizations, Power Forward Communities, received $2 billion despite reporting only $100 in total revenue the previous year. He also pointed out that the founding director of the EPA’s program allocated $5 billion to his former employer after being involved in the legislation that created the program.
In concluding his announcement, Zeldin reiterated his commitment to ensuring the EPA is a responsible steward of taxpayer money. He stated that this action was essential to reduce waste and enhance oversight, aligning the agency’s efforts with the law’s original intent.