EPA Cuts $20 Billion in Greenhouse Gas Reduction Fund Grants, Citing Concerns Over Mismanagement

CSR/ECO/ESG

The U.S. Environmental Protection Agency (EPA), led by Administrator Lee Zeldin, has canceled $20 billion in grants previously awarded under the Greenhouse Gas Reduction Fund (GGRF), a program created to advance clean energy and reduce emissions in disadvantaged communities. The termination affects grants for initiatives like the National Clean Investment Fund, which aimed to distribute $14 billion in climate project funding, and the Clean Communities Investment Accelerator, which was designed to help underserved areas access clean energy.

Zeldin, in a press release, cited “substantial concerns” about the integrity of the program, including issues of fraud, waste, abuse, and misalignment with the EPA’s priorities. These claims were bolstered by Zeldin’s recent criticisms of the program, which he described as having “no real accountability.” He referenced video footage from Project Veritas, a right-wing group, as evidence of mismanagement, though former EPA officials have disputed these allegations.

The GGRF, established under the Inflation Reduction Act, was intended to expedite clean energy projects, particularly in low-income areas, and provide grants for programs like Solar for All, which aimed to make solar energy more accessible. However, Zeldin argues that the funding structure lacked sufficient oversight and posed “unacceptable risks.”

The decision to freeze the funds came just ahead of a federal court hearing in which a grant recipient was seeking to access the frozen funds. Zeldin also ordered the termination of the EPA’s agreement with Citibank, which was handling the disbursement of the grants.

While Zeldin and the Trump administration defend the move, claiming it was necessary to protect taxpayer money, Democratic Senator Ed Markey of Massachusetts accused the administration of using political tactics to dismantle the climate program. “Zeldin and Trump are spreading lies in a last-ditch effort to terminate the climate bank because it will help households save money and deploy clean energy,” Markey said.

The cancellation of these grants has sparked criticism, with opponents arguing that the program is critical to combating climate change and promoting energy equity.

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