Trump administration intensifies efforts to reclaim $20 billion in climate funds
The Justice Department is requesting documents from nonprofit organizations that received funding via the Inflation Reduction Act.
TroibNews 
The Trump administration has instructed nonprofits involved in a $20 billion climate initiative from the Biden era to provide records to the FBI and appear in federal court later this month, as confirmed by two individuals who spoke on the condition of anonymity due to fears of retaliation.
This action represents a heightened effort from the administration to retract climate funds, following accusations that the Environmental Protection Agency (EPA) attempted to circumvent oversight by transferring the $20 billion into Citibank accounts during the final days of President Joe Biden's administration.
This conflict is part of a broader power struggle initiated by President Donald Trump's attempts to dismantle the fiscal decisions of his predecessor, even if such actions conflict with the agreements made by previous Congresses and the financial commitments that agencies are bound to fulfill.
At least two organizations that received portions of the funding via the EPA’s Greenhouse Gas Reduction Fund have reportedly received letters this week from acting U.S. Attorney Ed Martin in Washington. These letters directed them to submit records to the FBI within a two-week timeframe, according to the two sources familiar with the letters.
The correspondence requested the groups to provide communications with EPA personnel as well as details about transactions related to the funding program. Additional requests included copies of their articles of incorporation and their policies and procedures for managing grants.
The organizations were also summoned to testify in federal court later this month, as per the insights shared by the two individuals.
Neither the Justice Department nor the U.S. Attorney's Office in Washington offered comments on the situation. Citibank has yet to respond to queries regarding the matter.
EPA Administrator Lee Zeldin has been scrutinizing these organizations for weeks as part of his initiative to reclaim the $20 billion allocated through the Greenhouse Gas Reduction Fund. He has claimed, without substantiating evidence, that the program is marked by fraud—an assertion that those in support of the program argue would be necessary for the administration to successfully reclaim the funds from Citibank.
Trump spotlighted the issue during his address to Congress this week, calling out a specific component of the Greenhouse Gas Reduction Fund as an instance of “appalling waste.”
The $20 billion was allocated by Congress in 2022 as part of Biden’s extensive climate law, the Inflation Reduction Act, which tasked the EPA with obligating the funds by September 2024. In compliance with this deadline, the EPA finalized the transfer of the money into Citibank accounts, allowing eight nonprofit recipients to access the funds as per their government contracts.
The letters requesting documentation followed an earlier request from the EPA sent to the recipients on Tuesday. That letter, penned by acting Deputy Director Chad McIntosh, included 35 requests for documents, data, and information, which were to be submitted to the agency by March 28, according to a copy reviewed by PMG's E&E News.
The EPA’s request included details such as names of board directors, tax filings, and evidence that the organizations had completed an EPA training module titled “How to Develop a Budget.” It also sought “itemized funds spent to date,” lists of grant sub-recipients and agreements, along with the EPA’s methodologies for evaluating program effectiveness.
Some groups pointed out that this information is already accessible to the EPA via Citibank, which oversees the program for both the EPA and the Treasury Department. In certain instances, the information is also available on the EPA's own website.
The Greenhouse Gas Reduction Fund was designed to enhance financing for renewable energy initiatives and environmentally friendly transportation and building projects, especially in low-income communities. Since February 18, the Citibank accounts holding the grant funds have been frozen, compelling some organizations to use borrowed funds to pay staff and manage operating expenses, with at least one recipient having to furlough employees.
Navid Kalantari for TROIB News
This action represents a heightened effort from the administration to retract climate funds, following accusations that the Environmental Protection Agency (EPA) attempted to circumvent oversight by transferring the $20 billion into Citibank accounts during the final days of President Joe Biden's administration.
This conflict is part of a broader power struggle initiated by President Donald Trump's attempts to dismantle the fiscal decisions of his predecessor, even if such actions conflict with the agreements made by previous Congresses and the financial commitments that agencies are bound to fulfill.
At least two organizations that received portions of the funding via the EPA’s Greenhouse Gas Reduction Fund have reportedly received letters this week from acting U.S. Attorney Ed Martin in Washington. These letters directed them to submit records to the FBI within a two-week timeframe, according to the two sources familiar with the letters.
The correspondence requested the groups to provide communications with EPA personnel as well as details about transactions related to the funding program. Additional requests included copies of their articles of incorporation and their policies and procedures for managing grants.
The organizations were also summoned to testify in federal court later this month, as per the insights shared by the two individuals.
Neither the Justice Department nor the U.S. Attorney's Office in Washington offered comments on the situation. Citibank has yet to respond to queries regarding the matter.
EPA Administrator Lee Zeldin has been scrutinizing these organizations for weeks as part of his initiative to reclaim the $20 billion allocated through the Greenhouse Gas Reduction Fund. He has claimed, without substantiating evidence, that the program is marked by fraud—an assertion that those in support of the program argue would be necessary for the administration to successfully reclaim the funds from Citibank.
Trump spotlighted the issue during his address to Congress this week, calling out a specific component of the Greenhouse Gas Reduction Fund as an instance of “appalling waste.”
The $20 billion was allocated by Congress in 2022 as part of Biden’s extensive climate law, the Inflation Reduction Act, which tasked the EPA with obligating the funds by September 2024. In compliance with this deadline, the EPA finalized the transfer of the money into Citibank accounts, allowing eight nonprofit recipients to access the funds as per their government contracts.
The letters requesting documentation followed an earlier request from the EPA sent to the recipients on Tuesday. That letter, penned by acting Deputy Director Chad McIntosh, included 35 requests for documents, data, and information, which were to be submitted to the agency by March 28, according to a copy reviewed by PMG's E&E News.
The EPA’s request included details such as names of board directors, tax filings, and evidence that the organizations had completed an EPA training module titled “How to Develop a Budget.” It also sought “itemized funds spent to date,” lists of grant sub-recipients and agreements, along with the EPA’s methodologies for evaluating program effectiveness.
Some groups pointed out that this information is already accessible to the EPA via Citibank, which oversees the program for both the EPA and the Treasury Department. In certain instances, the information is also available on the EPA's own website.
The Greenhouse Gas Reduction Fund was designed to enhance financing for renewable energy initiatives and environmentally friendly transportation and building projects, especially in low-income communities. Since February 18, the Citibank accounts holding the grant funds have been frozen, compelling some organizations to use borrowed funds to pay staff and manage operating expenses, with at least one recipient having to furlough employees.
Navid Kalantari for TROIB News
