Trump Administration Urges Citibank to Freeze Climate Funds Amid FBI, EPA, and Treasury Intervention
In a significant development, Citibank has disclosed in recent court filings that multiple federal agencies, including the FBI, EPA, and the Treasury Department, have urged the bank to freeze accounts belonging to various nonprofits and state government entities. This revelation sheds light on the ongoing scrutiny surrounding funds allocated through the Greenhouse Gas Reduction Fund.
Details on Account Freezes
The accounts in question were frozen back in February, but newly released documents provide essential insights, including a comprehensive list of nonprofits currently under investigation by the FBI.
Background on the Greenhouse Gas Reduction Fund
The funds associated with these account freezes are part of a larger initiative—specifically, the $27 billion Greenhouse Gas Reduction Fund established by the Inflation Reduction Act of 2022. From this total, the EPA received $14 billion designated for the National Clean Investment Fund, aimed at empowering green banks to finance clean technology projects across the nation.
Role of Green Banks
Green banks utilize these funds to facilitate financing for startups with commercially viable technologies. Key aspects of their financing model include:
- Focus on loans that are repaid and recycled for future lending
- Delinquency rates comparable to those of traditional commercial and residential lenders
Citibank’s Involvement
Citibank was appointed as the financial agent for managing these funds, maintaining accounts in the names of the awardees. Additionally, the bank is overseeing a separate $6 billion Clean Communities Investment Accelerator program, with the EPA’s contract with Citibank publicly announced in April 2024.
FBI’s Request for Account Freezes
As part of the ongoing investigation, the FBI has requested Citibank to implement 30-day administrative freezes on accounts belonging to several nonprofits that received green bank funding. Notable organizations affected by this freeze include:
- Habitat for Humanity
- United Way
- Colorado Clean Energy Fund
- New York State Department of Taxation and Finance
Legal Action by Nonprofits
In response to these account freezes, three nonprofits that received funding from the green bank have filed lawsuits against Citibank, demanding the release of their frozen assets.
Concerns Raised by EPA Administrator
EPA Administrator Lee Zeldin has expressed that the Greenhouse Gas Reduction Fund may not align with the agency’s goals, citing concerns about potential fraud. However, he has not provided substantial evidence to support these allegations.
Stay updated with the latest developments surrounding the Greenhouse Gas Reduction Fund and its implications for nonprofits by following our latest news section.
