E&C Democrats Investigate Zeldin’s Efforts to Steal Taxpayers’ Money from the Greenhouse Gas Reduction Fund

Energy and Commerce Committee Democrats launched an investigation today into the Environmental Protection Agency (EPA) weaponizing the Department of Justice (DOJ) and the Federal Bureau of Investigations (FBI) to baselessly smear the Greenhouse Gas Reduction Fund and illegally prevent funding from reaching its recipients. The Greenhouse Gas Reduction Fund (GGRF) – established by Congress in the Inflation Reduction Act – is a $27 billion funding program designed to inject billions into our local communities and economies with the goal of lowering Americans’ energy bills, boosting homegrown clean energy, and reducing dangerous pollution.

Today’s letter was sent to EPA Administrator Lee Zeldin from Ranking Member Frank Pallone, Jr. (D-NJ), Environment Subcommittee Ranking Member Paul Tonko (D-NY), and Oversight and Investigations Subcommittee Ranking Member Yvette D. Clarke (D-NY).

“We write to express serious concerns regarding the Environmental Protection Agency’s (EPA) attempts to illegally freeze obligated funds under the Greenhouse Gas Reduction Fund and the false and misleading statements that you have personally made about this program,” the three Committee leaders wrote to Administrator Zeldin. “EPA has provided no credible evidence or justification to cut off access to these funds and instead has engaged in a smear campaign against the program and its awardees.”

Pallone, Tonko, and Clarke called Zeldin out for working to terminate the financial agency agreement between the federal government and Citibank, where the funds are held, despite Zeldin openly admitting that “at this point, there is zero reason to suspect any wrongdoing by the bank.” Shortly thereafter, EPA and DOJ escalated their baseless probe into the program despite a judge reportedly denying a warrant and two different U.S. attorney offices declining the case because of a lack of probable cause.

“Regrettably, GGRF funds at Citibank remain frozen without explanation to awardees, jeopardizing billions of taxpayer dollars meant to support local economic development projects that lower energy costs and spur private investment across the country,” Pallone, Tonko, and Clarke wrote to Administrator Zeldin.  

EPA and Department of Treasury established a financial agency agreement with Citibank for GGRF in 2024 after a rigorous, yearlong process. These agreements are designed to disburse federal funds in a way that maintains full federal oversight and preserves robust guardrails around the funding – all while enabling awardees to effectively leverage contractually obligated funds in private financial markets.  

By EPA’s own estimates, every federal dollar invested through GGRF will leverage seven dollars in private capital; yet without the financial agency agreement, grantees would be unable to do this.

“Without clear evidence of any wrongdoing, you are not only pursuing a politically motivated witch hunt, but also potentially violating the law, all while stealing from hardworking taxpayers,” the three lawmakers continued in their letter to Zeldin. “EPA must release GGRF funds to awardees immediately and you must end this campaign of lying to the public and coercing other agencies to assist you, which has already led to the resignation of valuable career civil servants.” 

The three Committee leaders demanded information about the EPA’s actions by March 25, including:

• All communications between EPA and Citibank, Treasury, and DOJ relating to GGRF;
• Information about what EPA has communicated with GGRF awardees;
• Information regarding what actions EPA has taken to freeze funds or otherwise restrict awardees’ ability to draw down funding held at Citibank as well as EPA’s justification for doing so; and
• Any documentation supporting the “documented evidence” cited in EPA’s letter to the EPA OIG dated March 2, 2025, as well as any other information that EPA perceives as evidence of fraud or other wrongdoing related to GGRF.

Full text of the letter is available HERE.

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