Biden’s $20 Billion Climate Fund Remains Frozen As FBI Investigated Criminal Violations

Biden’s $20 billion climate fund sits frozen as FBI investigators dig into potential criminal violations connected to the last-minute initiative. The Trump administration has put a halt to what critics call a “climate slush fund” established during Biden’s final days in office.

At a glance:

• Trump administration freezes $20 billion EPA climate fund amid ongoing FBI investigation

• Citibank ordered by EPA and Treasury Department to pause all disbursements

• Fund was established during final week of Biden’s term and distributed through politically connected NGOs

• FBI has requested freeze for at least 30 days as they investigate potential criminal violations

• Several recipients have sued Citibank for breach of contract over the withholding of funds

Trump Administration Takes Swift Action

The Trump administration has ordered Citibank to freeze a massive $20 billion fund that was earmarked for climate initiatives under President Biden’s EPA. The fund, part of the controversial Inflation Reduction Act, has been suspended following instructions from both the Environmental Protection Agency and Department of Treasury amid serious concerns about potential wrongdoing.

Established during the final week of President Biden’s term, the Greenhouse Gas Reduction Fund has remained inactive since President Trump took office in January. The FBI has requested that all disbursements be halted for at least 30 days while they conduct a criminal investigation into possible violations associated with the fund’s creation and management.

Questions of Legitimacy and Oversight

EPA Administrator Lee Zeldin has been vocal about reclaiming the funds, calling for a thorough investigation by the agency’s inspector general. The $20 billion allocation was slated for distribution through eight politically connected non-governmental organizations, several of which appear to be newly formed entities with questionable qualifications to handle such substantial sums.

An attorney representing Citibank confirmed the bank’s compliance with federal directives, stating they have “been instructed by EPA and the Department of Treasury to pause all further disbursements.” Citibank’s counsel K. Winn Allen further explained that the fund is “subject to an ongoing criminal investigation,” requiring immediate action to preserve financial integrity.

Legal Battles Emerge

Some disbursements had already been made before the freeze took effect, including transfers to the Climate United Fund and the Coalition for Green Capital. The sudden halt to funding has prompted legal action from several intended recipients, including an organization called Power Forward Communities, which has sued Citibank for breach of contract.

Citibank has defended its position by emphasizing its contractual obligations to follow government directives. Allen stated, “Citibank has only done its best to serve its customers while following instructions from the government of the United States, to whom Citibank owes a duty of loyalty and at whose direction Citibank is contractually obligated to act.”

Democrats have pushed back against the investigation, however, with Senator Sheldon Whitehouse accusing the EPA of “misusing law enforcement” to reclaim climate funds. Whitehouse has requested information from Attorney General Pam Bondi and FBI Director Kash Patel about the investigation, characterizing the probe as serving “vindictive political whims” rather than legitimate enforcement purposes.

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