Trump’s EPA Aims to Revoke Climate Grants, but Recipient Refuses to Yield

In an interview with POLITICO, Power Forward Communities CEO Tim Mayopoulos emphasized that “We have an obligation to fulfill” regarding the grant agreement.

Trump’s EPA Aims to Revoke Climate Grants, but Recipient Refuses to Yield
A coalition of nonprofits under scrutiny from President Donald Trump’s appointees is set to start distributing funds from a $2 billion climate grant obtained during the Biden administration, despite attempts by the Environmental Protection Agency (EPA) to recapture the funds.

"When the EPA made a grant to us and grants to other awardees, there's an official contract that the government enters into,” stated Tim Mayopoulos, the CEO of Power Forward Communities, in an interview with PMG. “The agreement has not been terminated, and we have an obligation to fulfill it."

Power Forward, a coalition representing five nonprofits including United Way and Habitat for Humanity, will allocate an initial $539 million from the grant in the coming weeks and months, aiming to assist communities nationwide in constructing energy-efficient housing.

In terms of the fund's status, the EPA directed PMG to a videotaped statement from February 12, in which Administrator Lee Zeldin demanded the return of $20 billion in grants from the Biden era, asserting, “The days of irresponsibly shoveling boat loads of cash to far-left activist groups in the name of environmental justice and climate equity are over.”

Power Forward is one of eight organizations that received grants totaling $20 billion as part of a Greenhouse Gas Reduction Fund established through former President Joe Biden’s 2022 climate law. This funding was contractually committed by Biden’s EPA before last October, as mandated by the legislation.

The Greenhouse Gas Reduction Fund also features an additional $7 billion designated for solar grants.

The Trump administration’s moves to rescind these climate funds have initiated a complicated situation that seems persistent.

A senior federal prosecutor resigned recently, claiming that Justice Department officials pressured her to investigate the green grant program without any evidence of misconduct. At the same time, Zeldin has taken the unusual step of attempting to persuade Citibank, which had received the $20 billion from the Biden administration, to return it. Zeldin has labeled the grants as instances of “waste and abuse,” yet has not clarified which aspects he deems problematic.

“I'm a little perplexed that this is at all controversial,” Mayopoulos, a former CEO of Fannie Mae, told PMG. “We are in violent agreement with the president that the cost of housing and the cost of energy is too high for many Americans, and we are looking to address that issue.”

Zeldin has also sought to tie the controversy to Stacey Abrams, the former Democratic gubernatorial nominee in Georgia, referring to Mayopoulos’ group as “Stacey Abram’s Power Forward Communities” in an EPA press release last week. Pro-Trump media outlets have echoed this sentiment, with the New York Post labeling Abrams a “fierce supporter” of Biden. However, Mayopoulos clarified that Abrams, who was once a paid adviser to one of Power Forward’s member organizations, is no longer connected to his coalition.

“Stacey Abrams has not received a penny of this EPA grant. It was never the plan for her to receive any money from this grant,” Mayopoulos explained. “Power Forward Communities has no relationship with Ms. Abrams, other than the fact that she's one of the people who have advised one of our coalition members in the past.”

The coalition member Rewiring America confirmed to PMG that Abrams’ contract with them expired at the end of 2024. According to Abrams' spokesperson, Joshua Karp, she did not receive any payments or hold any position with Power Forward Communities and did not benefit from the EPA grant.

Karp noted that during her advisory role with Rewiring America, Abrams assisted in identifying potential partners for the coalition working on the grant. In a post on X in October 2023, Abrams mentioned her involvement, expressing enthusiasm about being part of the coalition aimed at expanding access to clean energy.

Zeldin has repeatedly criticized the grant, referencing an undercover video released by a conservative group in December. In this video, an identified EPA adviser likened the Biden administration’s pre-inauguration spending of climate funds to “throwing gold bars” off the Titanic. However, this video emerged after the EPA had already obligated the $20 billion and eight months following the announcement by then-Vice President Kamala Harris and then-Administrator Michael Regan regarding funding for Power Forward and other recipients.

According to Mayopoulos, the funds allocated by Power Forward will be used for energy efficiency improvements, housing construction, and increasing lending capital for affordable, rural, and multifamily housing projects.

Zeldin has expressed skepticism about Power Forward's selection to manage the $2 billion grant, citing the organization’s recent formation in 2023 and its reported revenue of just $100, according to federal tax filings.

The EPA chief mentioned on Fox News that “the entire scheme, in my opinion, is criminal,” although he has not provided evidence of illegal activity. Citibank has been cooperating with the Justice Department regarding the situation.

Mayopoulos contended that such allegations misrepresent the coalition's intentions, which aim to improve or construct 11,000 multifamily homes and 61,000 single-family homes while creating 64,000 jobs and reducing energy costs by $1.26 billion over the seven-year grant period.

He highlighted the extensive experience of the coalition's member organizations, which collectively have managed $100 billion in projects targeting affordable housing, according to Power Forward Communities.

“Power Forward Communities was created to serve as the coalition entity for these five respected nonprofits,” Mayopoulos stated. “They clearly have the experience and capabilities and proven track record over two-and-a-half centuries of collective work to do this and to fulfill this grant.”

In addition to United Way and Habitat for Humanity, Power Forward consists of Enterprise Community Partners, the Local Initiatives Support Corporation, which focuses on financing in underinvested areas, and Rewiring America, aiming to promote electrification and reduce fossil fuel dependency.

Supporters of the program have expressed concerns that the Trump administration's threats regarding the Greenhouse Gas Reduction Fund could deter the effective use of these funds. However, Mayopoulos remains “confident” that Citibank will honor its agreements with the Treasury Department and the EPA, recognizing it as a “large and highly respected financial institution.”

Mayopoulos argued that the funding aligns with Trump’s objectives for lowering energy expenses. Among the awards Power Forward announced recently, $115 million is allocated for rural Americans, particularly in states like West Virginia and Alabama, predominantly backing Trump, to finance new multifamily housing projects.

Additional awards will enhance multifamily lending with $424 million spanning 20 states, including Georgia, Louisiana, Kentucky, Michigan, Ohio, Wisconsin, Texas, and Florida.

Ramin Sohrabi contributed to this report for TROIB News