EPA Administrator Lee Zeldin's aggressive stance against a major climate initiative leads to frozen bank accounts of nonprofit organizations.
According to The Hill, nonprofit organizations administering a $20 billion climate program funded by the 2022 Inflation Reduction Act have had their bank accounts frozen following pressure from the Trump administration.
The affected organizations are among eight institutions selected by the Biden administration to oversee the distribution of funds for climate-friendly projects. At least three grant recipients, including one that confirmed directly with The Hill, reported their Citibank accounts being frozen, significantly impacting their operational capabilities.
The freezing of accounts comes amid mounting criticism from EPA Administrator Zeldin, who has publicly challenged the program's legitimacy. The situation has escalated to the point where one organization reported their funds being frozen twice – initially for a day following Zeldin's criticism, then again last week after a brief period of accessibility.
The impact of these actions extends beyond mere administrative hurdles. Organizations are now operating without access to necessary funds, creating a bottleneck in the implementation of climate mitigation projects across the country.
Despite repeated attempts to obtain clarification, affected organizations have received no response from either Citibank or the EPA regarding the status of their frozen accounts.
EPA Administrator Zeldin expressed his determination to recover the distributed funds in a recent video statement. In his words:
The financial agent agreement with the bank needs to be instantly terminated and the bank must immediately return all of the gold bars that the Biden Administration tossed off the Titanic. EPA needs to reassume responsibility for all of these funds. We will review every penny that has gone out the door.
The situation has sparked significant political backlash. Democratic senators, led by Sen. Sheldon Whitehouse of Rhode Island, have formally challenged Zeldin's actions. In their letter to the EPA Administrator, they stated:
Because there is no legal basis for the Environmental Protection Agency (EPA) to claw back these expended … grants, and because doing so would destroy thousands of jobs and harm hundreds of communities across the country, we call on you to respect applicable legal authority, reconsider your decision, and ensure funding is available as the law requires.
The controversy has already led to significant developments within the Justice Department, where prosecutor Denise Cheung resigned last week, reportedly due to pressure to investigate the program and freeze its funding.
While Republicans might attempt to repeal the law's provisions establishing the program, questions remain about the practicality of such efforts, particularly since the funds are no longer under direct government control.
Grant recipients are currently exploring legal options while awaiting clarity on the duration of the account freezes and potential resolution pathways.
The Trump administration's actions against the $20 billion climate program have created unprecedented challenges for nonprofit organizations tasked with implementing environmental initiatives. The freezing of bank accounts, coupled with EPA Administrator Zeldin's determination to reclaim the funds, has effectively halted the progress of numerous climate-friendly projects nationwide.
As Democratic senators challenge these actions and affected organizations explore legal remedies, the ultimate fate of this significant environmental funding program remains uncertain, with potential implications for thousands of jobs and hundreds of communities across America.
