EPA Chief Moves to Revoke $20B in Biden Climate Grants \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ EPA Administrator Lee Zeldin announced plans to revoke $20 billion in climate and clean-energy grants awarded under Biden’s Greenhouse Gas Reduction Fund. Citing concerns about waste, he referenced a controversial video from Project Veritas. Environmental advocates argue the move is illegal and politically motivated, vowing legal action.
EPA’s Climate Grant Reversal: Quick Looks
- Zeldin’s Major Move – The new EPA chief seeks to rescind $20 billion in climate grants.
- Targeting the Green Bank – Funds for clean energy and environmental justice projects face cancellation.
- Republican Concerns – GOP lawmakers call the program a “slush fund” with little oversight.
- Project Veritas Video – Right-wing group’s footage claims wasteful EPA spending before Trump’s return.
- Legal Challenges Ahead – Environmental groups vow to fight the decision in court.
Deep Look
In a dramatic policy shift, Environmental Protection Agency (EPA) Administrator Lee Zeldin announced his intent to rescind $20 billion in grants allocated under the Biden administration for climate and clean-energy projects. This move directly targets the Greenhouse Gas Reduction Fund, commonly known as the green bank, a program approved under the 2022 Inflation Reduction Act to support projects aimed at reducing greenhouse gas emissions and promoting environmental justice.
Zeldin’s announcement, made via a video posted on X (formerly Twitter) Wednesday night, signaled a sharp reversal from the previous administration’s commitment to funding community-based clean energy projects. The decision has sparked a political firestorm, with Republicans celebrating the rollback of what they call reckless spending, while Democrats and environmental advocates decrying it as illegal and harmful to public health.
Biden’s Green Bank Under Fire
The Greenhouse Gas Reduction Fund was one of the most significant elements of President Joe Biden’s climate agenda. Passed as part of the Inflation Reduction Act, the program provided $20 billion in competitive grants to nonprofits, community development banks, and environmental organizations. The goal was to finance thousands of clean energy and climate resilience projects, with an emphasis on low-income and disadvantaged communities.
The fund was split into two major initiatives:
- $14 billion for national clean energy financing programs.
- $6 billion for local and community-based projects, focusing on underserved regions.
The grants were awarded to eight nonprofit organizations, which partnered with groups such as Habitat for Humanity and Rewiring America to implement the projects. The program was seen as a landmark achievement of former EPA Administrator Michael Regan, who championed environmental justice and clean energy investments.
However, the program faced fierce opposition from Republicans, who labeled it a “slush fund” with inadequate oversight. In 2023, the Republican-controlled House of Representatives passed a bill to repeal the green bank and other parts of Biden’s climate agenda, though the measure was blocked in the Democratic-controlled Senate.
Zeldin Cites Alleged Misuse of Funds
In his video announcement, Zeldin justified the decision by citing concerns over financial mismanagement and waste. He referenced a controversial video from Project Veritas, a right-wing activist group known for secretly recording conversations to embarrass news organizations, unions, and Democratic officials.
According to Zeldin, the video showed Brent Efron, a former special assistant at the EPA’s associate administrator for policy, discussing the agency’s rush to allocate climate funding before Donald Trump returned to office. In the video, Efron allegedly stated that the Biden administration was “tossing gold bars off the Titanic” in an effort to spend billions of taxpayer dollars before the incoming administration could interfere.
“The days of irresponsibly shoveling boatloads of cash to far-left activist groups in the name of environmental justice and climate equity are over,” Zeldin said in his statement. “I’ve directed my team to find your gold bars, and they found them. Now we will get them back inside of control of government as we pursue next steps.”
Zeldin also declared there would be “zero tolerance” for what he called waste and abuse at the EPA, a message that aligns with broader Republican efforts to roll back Biden-era climate policies.
Who Received the $20 Billion?
The Greenhouse Gas Reduction Fund had already distributed funds to the following eight nonprofit organizations before Zeldin’s order:
- Coalition for Green Capital
- Climate United Fund
- Power Forward Communities
- Opportunity Finance Network
- Inclusiv
- Justice Climate Fund
- Native CDFI Network
- Appalachian Community Capital
These organizations planned to deploy the money through partnerships with smaller local groups, financing solar panel installations, energy efficiency upgrades, and climate adaptation projects in disadvantaged communities across the country.
The grants were formally announced last year at an event in Charlotte, North Carolina, led by former Vice President Kamala Harris, who hailed the program as a critical step toward clean energy expansion and climate justice.
Legal and Political Fallout
Zeldin’s move has outraged environmental advocates and Democratic lawmakers, who argue that rescinding the grants violates federal law.
Legal Challenges Expected
Environmental groups have vowed to challenge the directive in court, claiming that the funds were legally appropriated by Congress and cannot simply be revoked at the discretion of an agency head.
Lena Moffitt, executive director of Evergreen Action, issued a scathing response, calling the move “a blatant violation of the Constitution”:
“This is not just an attack on clean energy investments — it’s a blatant violation of the Constitution. The Trump team is once again trying to illegally slash programs meant to help American families to fund tax cuts for billionaires.”
Legal experts argue that revoking allocated funds could be challenged on constitutional grounds, as the Executive Branch does not have unilateral authority to rescind congressionally approved spending. The EPA’s attempt to claw back these grants will likely face intense scrutiny in federal courts.
Republican Support for the Move
On the other hand, Republicans have praised Zeldin’s decision, arguing that the green bank lacked transparency and accountability.
House Speaker Mike Johnson (R-LA) defended the move, stating:
“American taxpayers deserve accountability. This program was a reckless giveaway to left-wing climate activists with zero oversight.”
What’s Next?
The EPA’s effort to rescind the grants is expected to trigger months of legal and political battles. If successful, the move would cripple funding for thousands of clean energy projects and reshape the federal government’s role in climate financing.
With lawsuits looming and congressional scrutiny intensifying, the battle over Biden’s green bank has become a defining showdown in the broader fight over U.S. climate policy. The ultimate outcome will determine whether the federal government continues to play a major role in clean energy investments—or if these efforts will be dismantled under the Trump administration’s new direction.
Stay tuned for updates as this legal and political fight unfolds.
EPA Chief Moves EPA Chief Moves
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