FBI probes alleged fraud in Biden's $20 billion climate fund
The FBI is investigating contested accusations of fraud within the Biden administration's $20 billion Greenhouse Gas Reduction Fund, questioning Environmental Protection Agency (EPA) employees about the program's oversight and fund allocation.
Spencer S. Hsu, Maxine Joselow, and Nicolás Rivero report for The Washington Post.
In short:
- The Greenhouse Gas Reduction Fund, established under the 2022 climate law, aims to finance clean-energy projects, including solar panels and heat pumps, especially in low-income communities.
- Justice Department efforts to freeze the funds faced resistance: A senior prosecutor resigned rather than comply, and a U.S. magistrate judge denied a seizure warrant due to insufficient evidence.
- Despite the resistance, at least three grant recipients report their Citibank accounts have been frozen without explanation, hindering their operations.
Key quote:
"It's certainly unusual for any case to involve two different U.S. attorney offices declining a case for lack of probable cause and to have the Department of Justice continue to shop it. You can’t seize a truck, you can’t seize a backpack, you can’t seize a pair of socks without probable cause."
— Stefan D. Cassella, former federal prosecutor and asset forfeiture expert
Why this matters:
The aggressive pursuit of this investigation, despite internal opposition and legal hurdles, raises concerns about overreach by the Trump administration and the impact on clean energy initiatives. Freezing funds without clear evidence could stall projects aimed at reducing greenhouse gas emissions and improving public health, particularly in underserved communities.
Read more: We mobilized to defend the EPA in Trump's first term. This time the stakes are even higher
