EPA to probe $20B redirected to Citibank under Biden administration

The allocation of a $20 billion green-energy fund from the Inflation Reduction Act to a private bank without adequate oversight has cast a shadow over the Biden administration's handling of the Environmental Protection Agency (EPA).

Elon Musk's Department of Government Efficiency (DOGE) has raised concerns regarding transparency and the significant involvement of Citibank in the fund's management, prompting newly appointed EPA Administrator Lee Zeldin to launch an investigation, as the New York Post reports.

The controversy surrounds the placement of the substantial sum into Citibank as part of the Greenhouse Gas Reduction Fund in 2022. This decision, executed under the Biden administration, drew scrutiny as details emerged of the bank's involvement having been finalized in September 2024, just after Biden opted out of pursuing re-election in July 2024. The administration announced the fund's recipients a little earlier, in August 2024.

Alleged Lack of Oversight Raises Questions

The recipients of the fund include several organizations spanning diverse missions, each receiving portions of the multibillion-dollar allocation. Notably, Opportunity Finance Network was granted $2.29 billion, while Coalition for Green Capital received $5 billion, amongst others. However, concerns about potential conflicts of interest have been fueled by reports of former EPA employees' transitions to employment within these grantee organizations.

These revelations led to Lee Zeldin's denunciation of the fund's management, comparing it to the reckless imagery of "throwing gold bars off the Titanic." His remarks underscored the urgency of addressing what he deems a top priority, alongside his team.

Zeldin Vows Thorough Investigation

Zeldin's commitment to investigating this issue was made clear with statements to prioritize the inquiry. He assured a swift and comprehensive examination, emphasizing, "it was a high priority for me and my great team to get to the bottom." His mission is to determine if any misconduct or impropriety has occurred, particularly regarding the bank's involvement.

Although questions mount about the transparency of the decision to entrust the fund to a private banking entity, Zeldin asserted there is no current evidence of wrongdoing on Citibank's part. His focus is instead on the allocation process and the possibility of recapturing control of the resources for the EPA.

Connections to Former Employees Probed

Amid the scrutiny, Zeldin's team is exploring potential familial ties or professional relationships between the grantee entities and former governmental staff. The apparent movement of personnel from the EPA into roles within recipient organizations has triggered alarms, hinting at possible undisclosed benefits or biases during the award allocation process.

Laura Silverman of Opportunity Finance Network, one of the major beneficiaries, spoke in favor of the fund's goals, aligning them with the objectives of promoting economic, financial, and social justice. Her comments aim to cast the fund recipient's pursuits in a positive light, despite emerging controversies.

Reflections on Fund Placement with Citibank

The decision to house the fund within Citibank, external to the standard government framework, has prompted pointed criticism over reduced transparency and oversight. This aspect of the situation forms a crucial component of the ongoing evaluation, as Zeldin and his team strive to unravel the intricacies of the fund's journey since its creation.

Zeldin has stated confidently that the current examination might only be the initiating phase, suggesting, "We have very high confidence that this is just the tip of the iceberg." Such assertions underline the possibility of broader, more systemic issues hidden beneath the surface.

The EPA's investigative journey is ongoing, with Zeldin taking an assertive stance on correcting course if necessary. As the probe continues, the international community and domestic stakeholders await further developments and potentially corrective measures aimed at promoting accountability and transparency in environmental funding initiatives.