The US Environmental Protection Agency (EPA) has revoked $20 billion in climate and clean-energy grants allocated by the Biden administration, Administrator Lee Zeldin announced.
In a video posted on X, Zeldin claimed the funds had been “parked at an outside financial institution in a deliberate effort to limit government oversight” and were being distributed through “politically connected, unqualified” non-governmental organisations (NGOs). The grants have now been frozen, with the Department of Justice and the FBI launching investigations.
The programme, established under the 2022 Inflation Reduction Act and formerly known as the Greenhouse Gas Reduction Fund, was designed to support clean-energy projects in disadvantaged communities. It included two major initiatives—£11 billion and £4.7 billion—targeting nonprofits, community development banks and similar organisations.
Among the eight nonprofits awarded funding were the Coalition for Green Capital, Climate United Fund, Power Forward Communities and the Justice Climate Fund. These groups partnered with organisations such as Rewiring America, Habitat for Humanity and the Community Preservation Corporation.
Zeldin alleged that Power Forward Communities, linked to Democrat Stacey Abrams, received £1.6 billion despite having reported only £79 in total revenue the previous year. He also claimed that the founding director of the EPA’s programme directed £3.9 billion to his former employer after helping draft the legislation from his White House position.
“These two examples are just the tip of the iceberg,” Zeldin said. “As of today, I have officially terminated these grant agreements entirely.” He justified the decision by citing “substantial concerns regarding programme integrity, fraud, waste, and abuse” as well as a “misalignment with the agency’s priorities.”
Zeldin framed the move as a step towards greater oversight, pledging his “unwavering commitment” to President Donald Trump, Congress and the American people. “The EPA will once again be an exceptional steward of your tax dollars,” he stated.
