The U.S. Environmental Protection Agency has called for an internal investigation into the Greenhouse Gas Reduction Fund, a key climate initiative now entangled in a political fight over Biden-era spending.
Zack Colman reports for POLITICO.
In short:
- EPA Administrator Lee Zeldin requested an inspector general investigation into potential conflicts of interest, waste, and fraud in the $20 billion Greenhouse Gas Reduction Fund, which Republicans aim to dismantle to fund tax cuts.
- Citibank, which holds the fund, has frozen the money amid ongoing Justice Department and FBI investigations, preventing grantees from accessing funds and jeopardizing planned clean energy projects.
- Legal experts warn that withholding funds without evidence of wrongdoing may violate contracts, raising concerns about the federal government breaching its obligations.
Key quote:
“There’s nothing that allows this unilateral termination of the contracts or unilateral interruptions, so the federal government is in breach of contract right now."
— David Super, contracts expert and law professor at Georgetown School of Law
Why this matters:
The Greenhouse Gas Reduction Fund was designed to spur clean energy investment, improve energy efficiency, and support infrastructure projects nationwide. Blocking access to these funds could halt hundreds of initiatives aimed at reducing emissions and creating jobs. The probe underscores the Trump administration’s broader efforts to undo Biden-era climate policies, testing the limits of executive power over congressionally approved spending.
