The Trump administration has withdrawn $20 billion in funding allocated for greenhouse gas reduction initiatives, a decision that has sparked criticism from climate advocates and Democratic lawmakers, who argue that it unlawfully diverts resources meant for clean energy and transportation projects in underserved communities.
Lee Zeldin, Administrator of the US Environmental Protection Agency (EPA), had previously announced efforts to reclaim funds from the Greenhouse Gas Reduction Fund. This initiative, initially approved under the Biden administration, was designed to support pollution-reduction projects.
In a statement issued late Tuesday, the EPA confirmed the funds had been rescinded, citing concerns about potential fraud, waste, and misuse. However, no specific evidence or details were provided to support these claims.
This action is part of the EPA’s broader strategy to recover funding distributed last year to eight organizations tasked with managing grants from the Greenhouse Gas Reduction Fund. These funds were held in an account with Citibank, which operates under a financial agency agreement with the US Treasury.
Zeldin has also involved the US Justice Department and the FBI to investigate the program, a move that has drawn objections from Democratic legislators. They argue that there is no legal justification for probing Citibank or the grant recipients.
Democratic Senator Sheldon Whitehouse, a senior member of both the Senate Environment Committee and a Senate Judiciary Subcommittee, criticized the administration’s actions in a letter addressed to Attorney General Pam Bondi and FBI Director Kash Patel. Whitehouse asserted that the funding was allocated through a well-established and transparent process, and there was no legitimate basis for interference.
The EPA has stated that it intends to redirect the funds while ensuring stricter oversight, though it has not specified how the money will be repurposed.
“EPA will responsibly manage taxpayer dollars to fulfill its core mission of protecting human health and the environment, rather than spending recklessly in the name of ‘climate equity,’” Zeldin stated.
The $20 billion was originally appropriated under the 2022 Inflation Reduction Act during the Biden administration. Since taking office, President Trump’s EPA has sought to halt funding for climate change and environmental justice programs amid ongoing legal disputes.
Over the weekend, the advocacy group Climate United Fund filed a lawsuit against the EPA and Citibank, arguing that withholding the funds violated a legally binding agreement. The organization, along with seven other grant recipients, claims they have been unable to access the money due to the administration’s actions. The US District Court for the District of Columbia is set to hear the case on Wednesday.
Environmental Justice Office Closure
In a separate move, the EPA announced in an internal memo on Tuesday that it will dismantle the Office of Environmental Justice and Civil Rights. This office, along with its 10 regional branches, was established to support minority and low-income communities disproportionately affected by air and water pollution. The decision is part of a wider restructuring of the agency.
Last month, employees from the office were placed on administrative leave.
“This decision puts our children’s health at risk, especially in communities already struggling with pollution,” said Stephanie Reese, a director at the environmental advocacy group Mom’s Clean Air Force, emphasizing that the move contradicts the EPA’s core mission.
