EPA Administrator Lee Zeldin is attempting to seize $20 billion allocated to the Greenhouse Gas Reduction Fund, a clean energy financing program created under the Biden administration, alleging financial misconduct.
Jake Bittle reports for Grist.
In short:
- The Greenhouse Gas Reduction Fund, also called the "green bank," was established under the 2022 Inflation Reduction Act to provide low-interest loans for clean energy projects in underserved communities.
- Zeldin claims the Biden administration misused taxpayer funds by transferring the money to Citibank and nonprofits, though similar programs have historically received bipartisan support.
- Legal battles may arise if the Trump administration forces Citibank to return the funds, as recipients could sue for breach of contract.
Key quote:
"The intention was very clear — to allow maximum flexibility for communities and to let the money leverage private investment."
— Laura Gillam, former policy adviser at the Senate’s Energy and Public Works committee
Why this matters:
Green banks use public funds to attract private investment for clean energy projects, often in communities that lack financial resources. Critics argue that efforts to claw back funding could stall projects meant to lower emissions and improve energy access. While similar financing models have been used for decades, they have become a political target amid shifting Republican views on climate policy.
Related: Lee Zeldin picked to lead EPA, raising questions on environmental priorities
