• EPA Administrator Lee Zeldin uncovered a $20 billion financial scandal involving taxpayer funds rushed to NGOs by the Biden administration before President Trump’s inauguration.
• The scandal, described as unprecedented, involves a “green bank” program established under the Inflation Reduction Act, which allocated the funds to just eight entities, raising concerns about transparency and accountability.
• The program’s largest recipient, the Climate United Fund, received nearly $7 billion, prompting Zeldin to question the decision-making process and potential conflicts of interest.
• The controversy has sparked a partisan battle over government spending, with Republicans viewing the program as a “slush fund” for activist groups and Democrats denouncing Zeldin’s actions as a political power play.
• Legal challenges to Zeldin’s directive to claw back the $20 billion are expected, with environmental groups pledging to fight the decision in court, while the EPA and its supporters defend the move as a necessary step towards greater transparency and accountability.

In that has sent shockwaves through Washington, EPA Administrator Lee Zeldin has uncovered what he calls a massive financial scandal involving $20 billion in tax dollars. According to Zeldin, the Biden administration, in a last-ditch effort before the inauguration of President Donald Trump, rushed to funnel these funds to a select group of non-governmental organizations (NGOs) through a controversial “green bank” program. The scandal, which Zeldin describes as unprecedented in EPA history, has already sparked calls for investigations and legal action.

Cash bonanza tossed “off the Titanic”

The story began to unravel when a video surfaced in December 2023, featuring Brent Efron, a former special assistant to the EPA’s associate administrator for policy. In the video, recorded by the investigative journalism group Project Veritas, Efron candidly described the Biden administration’s frantic efforts to “toss gold bars off the Titanic” by rushing to allocate billions of taxpayer dollars to climate and clean-energy projects before President Trump could take office. Efron’s words were a stark admission that the administration was aware of the potential wastefulness and lack of oversight.

EPA Administrator Lee Zeldin, in a video posted on X (formerly Twitter), vowed to take immediate action. “One of my very top priorities at EPA is to be an excellent steward of your hard-earned tax dollars,” Zeldin stated. “There will be zero tolerance of any waste and abuse.” He went on to detail the findings of his team, which discovered that the $20 billion was parked at an outside financial institution, a scheme designed to circumvent standard oversight mechanisms.

Green bank: A slush fund for far-left groups?

The program in question is the Greenhouse Gas Reduction Fund, more commonly known as the “green bank.” Established under the 2022 Inflation Reduction Act, the fund was intended to provide competitive grants to nonprofits, community development banks, and other groups for projects focused on environmental justice and climate equity. However, Zeldin’s investigation revealed that the $20 billion was awarded to just eight entities, which were then tasked with distributing the funds at their discretion.

One of the largest recipients, the Climate United Fund, received nearly $7 billion. Zeldin raised critical questions about the transparency and accountability of these organizations, asking, “How do these organizations decide how to allocate funding? How much money have they given out so far? And are there any former Biden EPA staffers now working at these entities?”

Partisan battle over transparency and accountability

The controversy has quickly become a flashpoint in the broader political battle over government spending and accountability. Republicans in Congress have long criticized the green bank as a “slush fund” for far-left activist groups, and the House of Representatives passed a bill last year to repeal the program. Although the bill was blocked in the Democratic-controlled Senate, the new EPA administration under Zeldin is now taking a more direct approach.

Democrats and clean energy advocates are outraged by Zeldin’s actions, which they view as a political power play. Lena Moffitt, executive director of Evergreen Action, an environmental group, denounced Zeldin’s move as “a blatant violation of the Constitution.” She added, “The Trump team is once again trying to illegally slash programs meant to help American families to fund tax cuts for billionaires.”

Zeldin, however, remains resolute. “The days of irresponsibly shoveling boatloads of cash to far-left activist groups in the name of environmental justice and climate equity are over,” he declared. “The American public deserves a more transparent and accountable government than what transpired these past four years.”

Pattern of concern

The current controversy echoes historical concerns about government waste and corruption, particularly in the realm of environmental policy. During the Obama administration, the Solyndra scandal in 2011 saw the government lose over $500 million in a failed solar panel company, sparking debates over the role of federal subsidies in the renewable energy sector. Similarly, the Trump administration’s attempts to roll back environmental regulations and cut funding for climate initiatives were met with intense criticism from environmental groups.

Zeldin’s actions are part of a larger trend of Republican administrations seeking to curb what they see as wasteful and politically motivated spending. The Biden administration’s ambitious climate agenda, passed without a single Republican vote, has been a particular target of Republican oversight and scrutiny.

Legal challenges and congressional responses

The EPA’s move to claw back the $20 billion is likely to face legal challenges. Environmental groups have already pledged to fight Zeldin’s directive in court, arguing that the funding was legally authorized by Congress and that Zeldin’s actions are unconstitutional. Senator Shelley Moore Capito (R-WV), who chairs the Senate Environment and Public Works Committee, praised Zeldin’s decision, calling it a necessary step to address “another abuse of power” by the Biden administration.

The controversy also has implications for the broader federal budget and the balance of power between the executive and legislative branches. As Zeldin and the Trump administration continue to push for greater oversight and accountability, the fight over the $20 billion will serve as a test of their commitment to transparency and the rule of law.

Sources include:

X.com

APNews.com

WashingtonPost.com