Latest news with #ClimateUnited
Business Insider
19-05-2025
- Business
- Business Insider
How Trump's EPA wrecking ball could also damage new housing
President Donald Trump has dismantled federal agencies and slashed spending as he's pledged to " gut the weaponized deep state." He has also vowed to ease the housing shortage across the nation. One promise may come at the expense of the other in the case of one agency's retrenchment. In February, his administration sought to take back $20 billion awarded by the Environmental Protection Agency during Joe Biden's presidency to fund decarbonization projects around the country. The head of the EPA has justified the clawback attempt with unproven accusations that the grants were marred by "programmatic fraud, waste, and abuse." As a result, tens of thousands of new apartments and houses that were expected to be financed with a portion of the EPA money are now in danger of not being built, nonprofit groups who were granted the funding say. Climate United, a coalition that received roughly $7 billion of the money — known as the Greenhouse Gas Reduction Fund — is suing the EPA along with other awardees over the withheld funding. The nonprofit estimates that about 30,000 single-family homes and another 30,000 apartment units were to be built with some of the funds that it and another group were set to administer. "There's a significant part of the strategy focused on building not only new housing but new affordable and workforce housing," Beth Bafford, the CEO of Climate United, said. There are varied estimates on how many new homes are needed in the US. Freddie Mac, a mortgage lending agency, calculated recently that the country is short about 3.7 million units. While the tens of thousands of homes that might be built with money from the GGRF would be just a small contribution toward that huge need, the fund's proponents say the money would go to a particularly impactful segment of the market. Bafford said that the focus of the GGRF money was on housing development projects in a part of the market with a lack of private sector financing options: affordable projects using energy-efficient systems and materials that are environmentally sustainable while helping mitigate utility costs for residents. "We see massive gaps in the financial markets, and this program was built to address some of those gaps," Bafford said. A spokesperson for Climate United said it had "disbursed $25 million in loans and committed over $500 million in loans before the EPA terminated our grant agreement without warning." "Unlike the Biden-Haris administration, this EPA is committed to being an exceptional steward of taxpayer dollars," an unnamed spokesperson from the EPA responded in an email. The spokesperson said the GGRF's termination was "based on substantial concerns" over its "integrity, the award process, and programmatic waste and abuse, which collectively undermine the fundamental goals and statutory objectives of the award." Some developers are already feeling the impact The impacts of the freeze have already been felt by some developers. Megan Lasch, the chief executive of O-SDA Industries, a for-profit builder of affordable housing based in Austin, said the EPA's clawback attempt made her reshuffle a portion of the financing package she had been arranging for a 90-unit affordable apartment project her firm is developing in Fort Worth, Texas. The roughly $37 million development involves renovating 801 West Shaw St., a historic building with 45 rental apartments, erecting an additional 45 units on land adjacent to the property, and building a pre-K facility. Lasch said she had arranged to use some $3 million of GGRF money for the project from the Local Initiatives Support Corporation, a member of Power Forward Communities, a coalition that received $2 billion of the EPA money. When the GGRF money was held up, Lasch said that she found a replacement loan but that the new funding is more costly, carrying a roughly 4.5% interest rate versus the GGRF loan's roughly 1% rate. "The patch was not pretty," Lasch said, adding that affordable housing projects often have thin margins and require deeply discounted financing to work. "There's going to be ultimately a lot of projects that will just go by the wayside because they're not able to come up with a patch." The 801 West Shaw St. building is set to offer rents that are affordable for residents who earn between 30% and 60% of the area's median income, Lasch said. Damon Burns, the CEO of Finance New Orleans, a public trust that helps fund and develop affordable housing in its namesake city, said that his organization had been allocated $5 million from the Coalition for Green Capital, which received $5 billion of GGRF money from the EPA. Finance New Orleans was seeking to use about $1 million of that $5 million it was to receive in combination with $1.5 million of other funds it holds to build six or seven new homes with net-zero emissions. Using GGRF money to augment his organization's funding pipeline to build more housing was a model that Burns said he had hoped to scale. He said the prospect of having the GGRF money withdrawn was daunting because New Orleans is "already a financially constrained city." "There is a huge concern that the disinvestment of the federal government will have an impact on all of our communities," Burns said. "It means less mortgages for homeowners. It means less capital for developers." A climate-focused financing initiative The GGRF was created with $27 billion of federal funds from the Biden administration's Inflation Reduction Act, which Congress passed in 2022. Some $20 billion of that amount was awarded to Climate United, Power Forward Communities, the Coalition for Green Capital, and other groups for various climate-focused financing initiatives. The remaining $7 billion went toward a federal program to fund residential solar energy installation projects. In December, Project Veritas, a conservative media organization, published a video that showed a former EPA official suggesting that the agency, under Biden, had fast-tracked its award of the money in anticipation that the incoming Trump administration might seek to scuttle the program. In the video, the official said: "It truly feels like we're on the Titanic and we're throwing gold bars off the edge." Lee Zeldin, a former Long Island, New York, congressman whom Trump appointed as the head of the EPA in January, cited the video as evidence of misconduct in the allocation of the funds. "One of my very top priorities at EPA is to be an excellent steward of your hard-earned tax dollars," Zeldin said in a video posted on his X account in February. "The 'gold bars' were your tax dollars, and tossing them off the Titanic meant the Biden administration knew they were wasting it." Zeldin has ordered the termination of the GGRF. In March, Climate United sued the EPA and Citibank, the financial intermediary for the $20 billion, in the federal district court in Washington, DC, over their refusal to release the money. Power Forward and the Coalition for Green Capital have joined the suit. The EPA lost the initial argument for the case but has brought its complaint to the Court of Appeals for the District of Columbia Circuit, where it won a preliminary order in April to freeze the money as its appeal is being considered. The next hearing in the case is scheduled for Monday. 'Every single project in the country is looking for gap funding' While Climate United estimated that terminating the GGRF would put roughly 60,000 homes at risk, other parties involved in the financing program say that number could be even greater. There has been a sharp increase in the number of housing developers interested in tapping financing from the GGRF, said Shaun Donovan, the president and CEO of the nonprofit housing lender Enterprise Community Partners. He was a secretary of the Department of Housing and Urban Development in the Obama administration. Donovan attributed that interest to growing construction costs from inflation and tariffs, which have driven up the price of building materials. Those overruns have punched holes in the budgets of a host of development projects that builders have scrambled to fill. "Every single project in the country is looking for gap funding," Donovan said. "What this GGRF money can do is to be that last dollar in, right? So even if it's only 5% or 10% of the project." A spokesperson for Enterprise said that it had received inquiries for about $1.2 billion of financing in recent months for a collection of projects totaling 18,426 units. "My concern is that what this and other efforts to cut housing programs will do is make it impossible for the president to meet his goal of reducing housing costs," Donovan said.
Yahoo
19-04-2025
- Business
- Yahoo
Federal judge scrutinizes administration's freeze on public health funds: 'Deliberate effort to limit government oversight'
A judge is determining whether billions of dollars earmarked for eco-friendly projects were illegally frozen and withheld by the federal government. The lawsuit by Climate United Fund alleges that the Environmental Protection Agency illegally terminated $20 billion worth of grants for financing clean energy projects and other green initiatives. The Inflation Reduction Act of 2022 initially authorized the funds, which were put into the Greenhouse Gas Reduction Fund, also known as a "green bank," the Associated Press reports. But the Trump administration has repeatedly signaled its intent to halt much of the funding and rebates available through the IRA, and new EPA administrator Lee Zeldin announced in March that green-bank grants would be canceled. "Twenty billion of your tax dollars were parked at an outside financial institution, in a deliberate effort to limit government oversight," Zeldin said in a video about the funds, which were being held in Citibank. Climate United claims the EPA ended the grants without evidence and that contracts stated the fund could only be terminated because of fraud or major performance failures. "This isn't about politics; it's about economics," Climate United CEO Beth Bafford said in a release. "This program was designed to save money for hard-working Americans who are struggling to pay for groceries and keep the lights on." In March, U.S. District Judge Tanya Chutkan stopped the funds from being terminated but also kept the money frozen until the case could be heard further. That hearing resumed earlier this month, with Chutkan pressing EPA attorneys on the legality of how the grants were terminated. "What plaintiffs are saying is if you wanted to stop that money from going out, you should have gone through the procedures under the" law, Chutkan said, per the AP. Other IRA benefits include rebates and tax credits for eco-friendly upgrades, such as installing solar panels and heat pumps or purchasing an electric vehicle. People who want to take advantage of those savings may want to act quickly, as they could also be on the chopping block — although congressional approval would be necessary to end them. Should the government continue to give tax incentives for energy-efficient home upgrades? Absolutely No Depends on the upgrade I don't know Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
27-03-2025
- Business
- Yahoo
Comer probes NGOs that received $20B in Biden EPA grants despite almost no revenue: 'Shady deal'
FIRST ON FOX: House Oversight Chairman James Comer is expanding his probe into former President Joe Biden's EPA, accusing the agency of awarding $20 billion in grants to political allies. Comer, R-Ky., called on eight nongovernmental organizations who received the grants to offer the committee all information related to the grants and their staff and salaries. The $20 billion came out of two initiatives launched under the 2022 Inflation Reduction Act that aimed to offer grants to nonprofits, community development banks and other groups for projects focusing on disadvantaged communities. EPA Administrator Lee Zeldin moved to terminate the programs earlier this month, but that decision is now held up in court. "The Biden EPA tried to dodge any oversight by striking a shady deal with a financial institution to cover up its corrupt self-dealing that rewarded political cronies pushing a far-left environmental agenda," Comer said in a statement. "The radical environmental groups profiting from Biden's Green New Deal must be held accountable for their misuse of taxpayer-funded grants and provide information for our investigation." Trump Epa Chief To 'Confront Crisis' Of Mexican Sewage Polluting San Diego Area Beaches Republicans claim the $20 billion was "parked at an outside financial institution" to avoid oversight. As part of the Greenhouse Gas Reduction Fund (GGRF) program, eight groups were awarded funds from the $14 billion National Clean Investment Fund and the $6 billion Clean Communities Investment Accelerator. Read On The Fox News App Eight letters went out to: Climate United, Coalition for Green Capital, Power Forward Communities, Opportunity Finance Network, Inclusiv, Justice Climate Fund, Appalachian Community Capital and Native CDFI Network. Climate United told Fox News Digital: "We have always been committed to transparency in our work and will comply with this request to provide information that is readily available to the EPA. Climate United looks forward to helping Congress and Americans better understand how our work reduces energy costs, creates jobs, and boosts demand for U.S. manufacturing." Fox News Digital has not yet received a reply for comment on Comer's letters from the other seven companies. Included in the funds was a $2 billion grant to Power Forward Communities, a group linked to former Georgia gubernatorial candidate Stacey Abrams that aims to "reduce our impact on the climate" by funding the replacement of household appliances in lower-income communities with green alternatives. Zeldin told Fox News that in 2023, Power Forward Communities reported just $100 in revenue, but was later granted $2 billion by the Biden-era EPA in 2024. "On page one of the grant agreement, it tells them that they have 21 days to distribute all $2 billion. On page seven of the grant agreement, it gives them 90 days to complete a training called 'How to Develop a Budget.' I would say that any entity that needs training on how to develop a budget shouldn't be actually distributing money before they take that training, and they certainly shouldn't be receiving $2 billion to be distributed that rapidly," he continued. Zeldin also noted the EPA found a potential "conflict of interest" payment of $5 billion to the former director of the Greenhouse Gas Reduction Fund under Biden. "All this money was put up front," Zeldin said. "It was 'here is $20 billion.' And it was going to their friends on the left." The acting inspector general of the EPA is now investigating the GGRF for financial mismanagement, conflicts of interest and oversight failures. The Oversight Committee launched its probe in February and requested a briefing from Zeldin on the matter earlier this month. The FBI is also investigating possible criminal violations. Fox News' Landon Mion contributed to this report. Original article source: Comer probes NGOs that received $20B in Biden EPA grants despite almost no revenue: 'Shady deal'
Yahoo
19-03-2025
- Business
- Yahoo
Judge blocks EPA from canceling $20 billion in Biden era grants
March 19 (UPI) -- A federal judge ruled that the Environmental Protection Agency can't cancel climate grants issued during the Biden administration, but the grantees cannot access the money either. The decision by U.S. District Judge Tanya Chutkan stopped the EPA from canceling the distribution of $20 billion that it had deposited in a Citibank account for nonprofits, including Climate United, Coalition for Green Capital and Power Forward Communities. Chutkan wrote that the EPA grant termination letters only "vaguely reference 'multiple ongoing investigations' into 'programmatic waste, fraud, and abuse and conflicts of interest' but offer no specific information about such investigations, factual support for the decision, or an individualized explanation," and that "this is insufficient." The grants were issued under the Inflation Reduction Act, which passed Congress and was signed into law in 2022. The Act authorized the Greenhouse Gas Reduction Fund, which made grants available to eligible climate projects. Among the grantees were nonprofits Climate United, Coalition for Green Capital and Power Forward Communities, who are the plaintiffs in Chutkan's decision. The three nonprofits were granted an approximate total of $14 billion, and that money is held by Citibank; five other nonprofit groups were the recipients of the remainder of the $20 billion total. The EPA issued a letter to the plaintiffs on March 11 that terminated the grants, leading them to move for temporary restraining orders to prevent Citibank from not "violating its legal and contractual obligations to disburse grant money owed" to the plaintiffs and stop the EPA from terminating the grants. However, Chutkan's court order also states that as this is a temporary order. "The court merely orders the parties to preserve the status quo -- that is, for Citibank to maintain the grant funds in Plaintiffs' respective accounts," it said. This means that while the grant money has not been given back to the government, maintaining the "status quo" will also keep the grants from being withdrawn for use by the nonprofits. EPA Administrator Lee Zeldin posted a statement to X Tuesday that confirmed the grants are "frozen by court order." Zeldin also said that the EPA under the Biden presidency was "riddled with self-dealing and wasteful spending," and that he "will not rest" until the grant money has been returned to the U.S. Treasury. Meanwhile, as the grants remain locked to all parties involved, Climate United could end up "furloughing or laying off staff," among other "imminent harms" the company declared in the suit could happen without the expected grant funding. In a press release, Climate United stated Tuesday it "will continue its legal process to fully restore its program."
Yahoo
19-03-2025
- Business
- Yahoo
Judge blocks Trump's EPA from terminating $14 billion in 'green bank' grants after accusations of fraud
A federal judge on Tuesday blocked the Environmental Protection Agency from terminating $14 billion in grants awarded to three climate groups by the Biden administration. U.S. District Judge Tonya Chutkan ruled that the federal government's "vague and unsubstantiated assertions of fraud are insufficient." The order prevents the EPA from ending the grant program, which totaled $20 billion. The judge also blocked Citibank, which holds the money on behalf of EPA, from transferring it to the government or anyone else. EPA Administrator Lee Zeldin claimed the grant recipients engaged in mismanagement, fraud and self-dealing in announcing that he froze and moved to terminate the grants, but the judge said Zeldin's allegations were inadequate. "At this juncture, EPA Defendants have not sufficiently explained why unilaterally terminating Plaintiffs' grant awards was a rational precursor to reviewing" the green bank program, Chutkan wrote. Epa Terminates Biden Admin's Green Grants Worth $20B, Zeldin Says The grant recipients sued the EPA, Zeldin and Citibank, arguing that they had illegally denied the groups access to $14 billion awarded last year through the Greenhouse Gas Reduction Fund, commonly referred to as a "green bank." The program, which consisted of two initiatives worth $14 billion and $6 billion, respectively, was approved by Congress under the 2022 Inflation Reduction Act to support clean energy and climate-friendly projects. Read On The Fox News App Three groups — Climate United, the Coalition for Green Capital and Power Forward Communities — said the frozen grants prevented them from funding new projects and might force them to lay off staff. The groups said the allegations of mishandling funds were meritless. The groups also asked Chutkan to order Citibank to unfreeze the account, but the judge declined. The order only preserves the status quo as the case moves forward. Stacey Abrams Slammed After Defending $2 Billion In Biden-era Epa Funds To Buy Green Energy Appliances Climate United was awarded nearly $7 billion, the Coalition for Green Capital won $5 billion and Power Forward Communities — a group linked to Democrat Stacey Abrams — was awarded $2 billion. Beth Bafford. CEO of Climate United, said the judge's ruling was "a step in the right direction." "In the coming weeks, we will continue working towards a long-term solution that will allow us to invest in projects that deliver energy savings, create jobs, and boost American manufacturing in communities across the country," Bafford said. Zeldin said Tuesday on X that the grants were awarded "in a manner that deliberately reduced the ability of EPA to conduct proper oversight," adding that he "will not rest until these hard-earned taxpayer dollars are returned to the U.S. Treasury." Zeldin has described the grants as a "gold bar" scheme involved in conflicts of interest and potential fraud. "Twenty billion of your tax dollars were parked at an outside financial institution, in a deliberate effort to limit government oversight — doling out your money through just eight pass-through, politically connected, unqualified and in some cases brand-new NGOs," Zeldin previously said in a video posted on X. Climate United contended that the termination was unlawful, arguing the federal government had identified no evidence of waste, fraud or article source: Judge blocks Trump's EPA from terminating $14 billion in 'green bank' grants after accusations of fraud
