The Environmental Protection Agency (EPA) under the Trump administration has rescinded $20 billion in grants that were part of a federal program to accelerate clean energy development and reduce greenhouse gas emissions. The decision, announced by EPA Administrator Lee Zeldin, effectively terminates the Greenhouse Gas Reduction Fund (GGRF), a key component of the Inflation Reduction Act designed to expand renewable energy access, particularly in disadvantaged communities.
Environmental advocates and Democratic lawmakers condemned the move as a politically motivated attack on clean energy investment, with Senator Ed Markey calling it “a last-ditch effort to terminate the climate bank because the truth is it will help households save money and deploy clean energy — exactly what Big Oil is afraid of.”
The GGRF was established to provide financial support for clean energy projects aimed at lowering emissions and transitioning the United States away from fossil fuels. The program consisted of three major initiatives:
• National clean investment fund ($14 billion) – provided funding for large-scale clean energy projects and infrastructure.
• Clean communities investment accelerator ($6 billion) – distributed funds to community lenders to ensure renewable energy reached underserved and low-income communities.
• Solar for all ($7 billion) – focused on expanding solar energy access to reduce electricity costs and make renewable power more affordable for disadvantaged households.
The program was expected to create jobs, lower emissions, and increase access to renewable energy sources. However, Zeldin announced its termination, citing allegations of fraud and mismanagement, despite no formal evidence supporting these claims.
In an EPA press release, Zeldin defended the decision to cancel the grants, claiming that the GGRF was plagued with mismanagement and financial misconduct.
“The days of ‘throwing gold bars off the Titanic’ are over,” Zeldin said in the statement. “The well-documented incidents of misconduct, conflicts of interest, and potential fraud raise significant concerns and pose unacceptable risk.”
Zeldin’s claims were based in part on a video from Project Veritas, a right-wing organization known for heavily edited hidden-camera footage used to push political agendas. However, former EPA officials dismissed the allegations.
Zealan Hoover, the EPA’s former implementation director, countered the fraud claims, stating that the U.S. Treasury Department routinely uses private banks as financial agents for large-scale federal programs. He added that Citibank was selected to handle GGRF disbursements based on standard financial practices, refuting the Trump administration’s claim that it was a rushed or unvetted process.
Additionally, an anonymous grant recipient told Politico that the agency had no legal basis for canceling the contracts, as no violations of financial regulations had been cited.
“Their claims (of abuse) simply aren’t true,” the grantee said. “[T]here is nothing that they can use from our terms and conditions — so our grant agreement — that can terminate the contract based on the claims that they are making.”
Canceling the GGRF means the loss of billions of dollars in investments aimed at reducing reliance on fossil fuels. The program was expected to:
• Finance large-scale solar and wind energy projects
• Provide funding for energy-efficient housing and infrastructure upgrades
• Help communities transition away from coal and gas-fired power plants
Without these grants, clean energy deployment in low-income communities will be severely delayed, forcing them to continue relying on high-cost, polluting energy sources.
The cancellation of the Clean Communities Investment Accelerator is expected to have the greatest impact on marginalized communities, which rely on local funding to install clean energy infrastructure.
“Every Montanan deserves the ability to access quality, timely health care, regardless of where they live or how much money they make,” stated a coalition of advocacy groups, including the Center for Reproductive Rights and ACLU of Montana, which fought against restrictive energy policies that disproportionately impacted vulnerable communities.
By cutting these funds, rural, tribal, and low-income areas will face higher energy costs and fewer options for renewable energy adoption.
The GGRF grants were projected to significantly cut carbon emissions over the next decade. The cancellation of the program threatens:
• The U.S.’s ability to meet its 2030 emissions reduction goals
• Job creation in the clean energy sector
• National energy security by delaying the shift from fossil fuels
Jason Rylander, legal director of the Climate Law Institute, warned that Trump’s EPA is actively reversing progress.
“Removing the endangerment finding even as climate chaos accelerates is like spraying gasoline on a burning house,” Rylander said. “We had 27 separate climate disasters costing over a billion dollars last year. Now more than ever the United States needs to step up efforts to cut pollution and protect people from climate change. But instead Trump wants to yank us backward, creating enormous risks for people, wildlife, and our economy.”
The EPA’s grant cancellations are part of a broader effort by the Trump administration to dismantle climate protections.
Zeldin announced that the EPA would be rolling back 31 environmental regulations, calling it “the greatest and most consequential day of deregulation in U.S. history.”
Among the regulations targeted for repeal:
• Epa’s endangerment finding, which legally requires the agency to regulate greenhouse gas emissions
• Methane emissions regulations, allowing fossil fuel companies to release more pollution
• Clean air and water protections, increasing the risk of toxic contamination
• Auto emissions standards, reversing progress toward electric vehicle adoption
Environmental advocates argue that these rollbacks will lead to higher pollution levels, increased public health risks, and greater reliance on fossil fuels.
Senator Ed Markey condemned the decision, accusing Trump and Zeldin of catering to fossil fuel interests.
“Zeldin and Trump are spreading lies in a last-ditch effort to terminate the climate bank because the truth is it will help households save money and deploy clean energy — exactly what Big Oil is afraid of,” Markey wrote in a post on X.
Democratic lawmakers are expected to challenge the EPA’s decision in court, arguing that the grant cancellations violate the Inflation Reduction Act and federal contract law.
The Climate United Fund has already filed a lawsuit to block the termination of grant funds. Legal experts say the administration may struggle to justify the move, given the lack of documented financial misconduct by grant recipients.
The Sierra Club and Natural Resources Defense Council (NRDC) have vowed to challenge the broader EPA rollbacks, warning that they will lead to thousands of premature deaths from air pollution.
“The Trump administration is trying to roll back decades of critical health and safety regulations that have saved millions of lives,” said Aru Shiney-Ajay of the Sunrise Movement. “Trump doesn’t care about working people, all he cares about is pleasing the oil and gas billionaires who bankrolled his campaign.”
What happens next?
Potential court battles
• Legal challenges from environmental groups and grant recipients could block or delay the EPA’s actions.
• Congressional oversight hearings may be launched to investigate the claims of fraud used to justify the cancellations.
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