EPA Chief Moves to Halt $20 Billion Green Grant Contracts

EPA Administrator Lee Zeldin aims to cancel $20 billion in clean energy grants distributed under the Biden administration. Citing reduced oversight and rushed obligations, Zeldin plans to work with the Inspector General, Congress, and Justice Department to end the contracts and rescind funds to eight regional organizations.

The head of the U.S. Environmental Protection Agency is pushing to cancel $20 billion worth of clean energy grants allocated by the previous administration to benefit disadvantaged communities. EPA Administrator Lee Zeldin announced his intentions on Thursday, seeking collaboration from key oversight bodies to reverse the current contracts.

According to Zeldin, the grants were designated for distribution by eight regional organizations under the Biden EPA's Greenhouse Gas Reduction Fund. These funds were intended for initiatives such as home energy retrofitting and off-grid renewable energy projects, especially in communities with limited access to green financing. The original efforts were part of initiatives like the Inflation Reduction Act, targeting to reduce climate pollution significantly.

The decision has drawn criticism and potential legal challenges from Democratic lawmakers and advocacy groups, who argue that retracting the funding might demand legislative approval. Zeldin's critique focuses on what he described as hastily obligated money with inadequate oversight. Notably, a U.S. judge recently highlighted a violation by the Trump administration related to federal spending freezes, adding another layer to the complex situation.

(With inputs from agencies.)