EPA’s Lee Zeldin Launches Investigation Into $20B Greenhouse Gas Fund

EPA Administrator Lee Zeldin announced an investigation into the Greenhouse Gas Reduction Fund (GGRF), a $20 billion contract signed as part of the Inflation Reduction Act in 2022. Zeldin wrote a letter to the Office of the Inspector General (OIG) providing several potential conflicts of interest within the GGRF.

“Recent findings reveal a pattern of reckless financial management, blatant conflicts of interest, astonishing sums of tax dollars awarded to unqualified recipients, and severe deficiencies in regulatory oversight under the prior administration,” Zeldin wrote.

An undercover video by Project Veritas in which an EPA official in the Biden administration said they were “tossing gold bars off the Titanic” was mentioned. President Trump has signed an executive order to create the Department of Government Efficiency and an order for agency heads to review existing contracts. As part of that effort, Zeldin has been posting about contracts that they have cut.

Zeldin wrote, “A large private-sector financial institution was used as an external financial agent, holding $20 billion in taxpayer dollars – an unprecedented arrangement for EPA. Only eight prime recipients controlled all $20 billion, acting as pass-through entities to sub-recipients – many of which were also structured as pass-throughs, raising serious concerns about transparency and accountability.”

The letter continues:

-“Jahi Wise, the former director of the GGRF personally oversaw a $5 billion grant to his previous employer, the Coalition for Green Capital, without recusing himself.

-“A $2 billion grant was awarded to Power Forward Communities, a new nonprofit with ties to Stacey Abrams, despite reporting only $100 in total revenue in 2023.”

-“Young, Gifted and Green was awarded $20 million even though its CEO applied for funding while serving on the White House Environmental Justice Advisory Council.”

The funds for this contract have been frozen, which some have alleged is an illegal action. The DOJ and FBI are currently investigating the fund; the FBI recommended freezing the fund while the agency conducts the investigation.

Climate United CEO Beth Bafford told Newsweek, “The current funding freeze harms the communities we serve, and we are taking the next step to ensure we can deliver on our contract. We would appreciate the opportunity to discuss our program and work plan in detail with the EPA, and to reaffirm our commitment to full transparency and compliance with grant terms, as has been the case since we were notified of our award last April.”

The EPA OIG office states they can recommend terminating “questionable EPA contracts and grants.” David Super, a Georgetown Law professor, said that unilaterally freezing the accounts is a breach of contract and that Climate United would win a lawsuit against the EPA if they took the matter to court.

Politico reported that a person with “direct knowledge of the contracts between grantees and EPA” said the EPA can terminate contracts if there is “clearly defined” waste, fraud, or abuse. Zeldin’s letter said the financial institution has voluntarily frozen the funds.

A continued pause or cancellation of the contract could cause several nonprofits to lay off employees and/or file for bankruptcy. Zeldin has expressed his intent to claw back the funds that have already been disbursed.

Zeldin’s letter said the contract required the recipients to begin drawing down the balance within 21 days. The contract also required recipients to complete training on “How to Develop a Budget” within 90 days. Zeldin wrote, “If an entity requires 90 days to learn how to create a budget, it cannot be trusted to start responsible distribution of taxpayer funds within 21 days.”

Zeldin told the OIG that its predecessor testified before Congress in September and described the GGRF financial structure as “fantastically complex.” He added that agreements were signed in the final months and days of the previous administration to reduce EPA oversight of the funds.

Zeldin wrote, “The ironically named “Notice of Exclusive Control,” the ostensible purpose of which is to allow EPA to take control of accounts at the financial agent, grants prime recipients and sub-recipients the ability to transfer funds to private financial institutions of their closing outside the scope of the financial agent agreement.”

Fox News asked Gina McCarthy, former administrator of the EPA during the Obama administration, about the EPA’s current plan to cut 65% of the budget. McCarthy said, “It would mean that the agency would sincerely be handcuffed. The agency right now is staffed by very capable people. We don’t want to lose that staff.” She added, “I’m not suggesting EPA is perfect.”

Zeldin responded to McCarthy’s comments on Fox News. He said, “EPA received tens of billions of dollars in 2024. I want to spend tens of billions of less dollars in 2025. My message to Congress is don’t even send us all of those tens of billions of extra dollars. I internally want to make sure that we’re finding efficiency as it relates to travel, our real estate footprint, grants, contracts, and we’re also going to be saving money with regards to staff. We had hundreds of people take President Trump’s fork in the road, voluntary early retirement. There are some probationary employees that were terminated as well, others resigned, retired. We’re going to continue pursuing those efficiencies.”

The HighWire has reported about an alleged EPA coverup in East Palestine, including cherry-picked data and serving as the “public relations arm of Norfolk Southern,” according to Government Accountability Project Whistleblower Scott Smith. Last month, they reported about an NGO with East Palestine resident members and ties to the Biden administration allegedly deciding who would meet with President Biden when he visited the town a year after the disaster.