WASHINGTON — In a significant development, the recently appointed head of the Environmental Protection Agency (EPA) announced plans to attempt the cancellation of $20 billion in grants previously allocated by the Biden administration for climate initiatives and clean-energy projects.
In a video shared on X, Administrator Lee Zeldin indicated that the EPA aims to annul contracts related to an emergent “green bank,” intended to finance tens of thousands of initiatives aimed at combating climate change and furthering environmental justice.
This initiative, sanctioned under the 2022 Inflation Reduction Act, is officially called the Greenhouse Gas Reduction Fund but is widely referred to as the green bank. It consists of two primary components, with allocations of $14 billion and $6 billion respectively, designed to provide competitive grants to nonprofits, community development financial institutions, and similar groups targeting projects in underserved communities.
The program enjoys robust support from Democrats, who advanced President Joe Biden’s flagship climate legislation without any Republican backing. Former EPA Administrator Michael Regan regularly highlighted this program as one of his key achievements.
However, the green bank has faced scrutiny from congressional Republicans, who have labeled it a “slush fund” and expressed concerns regarding the allocation of funds and the accompanying oversight and transparency measures. Last year, the Republican-led House passed a measure intending to dismantle the green bank as well as other elements of Biden’s climate plan, though this legislative effort was thwarted in the Democratic-controlled Senate.
In the video released on Wednesday evening, Zeldin declared that his administration would adopt a “zero tolerance” policy toward waste and abuse within the EPA. He referenced “an extremely disturbing video” posted on X, which featured a former agency employee claiming the Biden administration was irresponsibly spending taxpayer dollars just before the transition to the Trump administration.
Zeldin stated, “The days of irresponsibly shoveling boatloads of cash to far-left activist groups in the name of environmental justice and climate equity are over. I’ve directed my team to locate your gold bars, and they’ve found them. Now we will ensure they are returned under government control as we move forward.”
The video cited by Zeldin was produced by Project Veritas, a conservative organization known for its undercover operations aimed at discrediting media outlets, labor unions, and Democratic politicians. In the footage, Brent Efron, a former special assistant at the EPA, was seen discussing environmental funding issues in what seemed to be a casual setting. Efron has since departed from the agency.
Supporters of clean energy have condemned Zeldin’s initiative as a political maneuver, asserting that he is unlawfully seeking to rescind congressional funding for partisan purposes. They have promised to contest the directive in court.
“This is not merely an assault on clean energy funding — it’s an outright infringement of the Constitution,” stated Lena Moffitt, executive director of Evergreen Action, an environmental organization that backs the green bank initiative. “The Trump administration is once again attempting to unlawfully diminish programs designed to assist American families to facilitate tax reductions for the wealthy.”
The allocated funds have already benefited eight nonprofit organizations, encompassing groups like the Coalition for Green Capital, Climate United, Rewiring America, Habitat for Humanity, and the Community Preservation Corporation.
