The EPA’s $20 billion climate funding controversy explained
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By Claire Brown, New York Times
The fate of $20 billion in federal climate funding that was legally committed months before the election has been thrown into question after a weeklong controversy involving “gold bars,” the right-wing group Project Veritas and two federal agencies.
Now, more than 200 planned investments intended to help finance clean energy and environmental projects in underserved communities may be at risk.
Last week, the Environmental Protection Agency issued a press release announcing it had found billions of dollars, or what it called “gold bars,” that had been “parked” at a financial institution during the Biden administration.
In a video accompanying the release, Lee Zeldin, the leader of the E.P.A., criticized the Biden administration’s decision to use a private bank to disburse the funds and called for Citibank, the bank in question, to return the money.
The money was “green bank” funding from the E.P.A.’s Greenhouse Gas Reduction Fund, which received $27 billion under the Biden-era 2022 Inflation Reduction Act.
Funds were held in Citibank accounts under the names of eight nonprofit grantees, which were planning to send it to other green banks and loan it out for climate projects.
Dept. of Justice resignation
The situation escalated on Tuesday, when Denise Cheung, a top federal prosecutor in Washington, D.C., abruptly resigned after she refused to open a criminal investigation into an unnamed government vendor and freeze unspent assets. The vendor is believed to be Citibank, and the assets in question are thought to be the $20 billion identified by Zeldin’s team.
Cheung said in a resignation letter that she felt there was not sufficient evidence to restrict the nonprofits’ access to the accounts.
By Thursday, it wasn’t clear whether Citibank would freeze the funds. That has created confusion among grant recipients about whether they’ll have access to the money.
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