The Trump administration has intensified efforts to reclaim $20 billion from the Biden-era Greenhouse Gas Reduction Fund, directing nonprofit recipients to turn over financial records to the FBI and appear in federal court later this month.
FBI Inquiry Into Climate Fund
At least two nonprofit organizations that were awarded grants through the Environmental Protection Agency’s (EPA) Greenhouse Gas Reduction Fund have received formal letters from the U.S. Attorney’s Office in Washington. The letters demand financial records, communications with EPA staff, and internal policies related to the grants. Additionally, the organizations were issued court summonses, requiring them to testify before federal judges in the coming weeks.
This move follows accusations from the Trump administration that the EPA attempted to bypass oversight by depositing the $20 billion into Citibank accounts just before President Joe Biden left office. Acting U.S. Attorney Ed Martin is leading the charge, enforcing compliance with the subpoenas within two weeks.
Trump Calls Climate Fund “Appalling Waste”
President Donald Trump elevated the issue during his address to Congress, condemning the Greenhouse Gas Reduction Fund as an example of mismanagement and excessive government spending. Meanwhile, EPA Administrator Lee Zeldin has been pushing to freeze the funds, alleging fraud within the program—though he has not provided evidence to support his claims.
Legal and Financial Fallout for Grant Recipients
The Justice Department has declined to comment on the investigation, but the EPA itself has sent a separate records request to grant recipients, demanding detailed documentation by March 28. The EPA’s letter, signed by acting Deputy Director Chad McIntosh, lists 35 separate requests, including:
- Names of board directors and tax filings
- Proof of training compliance with EPA’s financial management guidelines
- Itemized expenditures of the grants
- Details of sub-award agreements and recipients
Nonprofits have argued that much of this information is already accessible through Citibank and the EPA’s website, raising questions about the administration’s broader motives.
Impact on Renewable Energy and Low-Income Communities
The Greenhouse Gas Reduction Fund was established under Biden’s Inflation Reduction Act to support clean energy projects, sustainable transportation, and environmental improvements—particularly in underserved communities. However, Citibank froze access to the funds on February 18, leaving nonprofits scrambling to cover salaries and operating costs.
At least one grant recipient has furloughed employees, while others have been forced to take out loans to maintain operations.
What’s Next?
With the investigation escalating and Trump’s administration seeking legal avenues to reclaim the funds, the fate of the $20 billion climate initiative remains uncertain. The coming weeks will be critical as court proceedings unfold and nonprofit recipients push back against the administration’s demands.
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