Trump Admin Blocks Citibank From Releasing $20B Fund

FBI surrounded by digital security and technology graphics

President Trump has frozen a $20 billion Biden-era climate slush fund as FBI investigation reveals potentially criminal misuse of taxpayer dollars meant for politically-connected NGOs.

Key Takeaways

  • The Trump administration ordered Citibank to freeze a $20 billion climate fund established during Biden’s final days in office due to an ongoing FBI criminal investigation.
  • EPA Administrator Lee Zeldin cited financial mismanagement concerns, with many recipient NGOs being newly formed and politically connected entities of questionable qualification.
  • Senator Whitehouse has accused the administration of “misusing law enforcement” to reclaim climate funds based on political motivation rather than legitimate violations.
  • Citibank has been instructed by both the EPA and Treasury Department to halt all disbursements while following government directives as legally required.
  • Some fund recipients have already filed lawsuits against Citibank for breach of contract over the frozen payments.

Biden’s Last-Minute Climate Spending Under FBI Investigation

In a decisive move to protect taxpayer dollars, the Trump administration has ordered Citibank to freeze a massive $20 billion fund originally created during the final week of President Biden’s term. The Greenhouse Gas Reduction Fund (GGRF), established under Biden’s misleadingly named Inflation Reduction Act, has come under intense scrutiny after evidence of potential criminal violations emerged. EPA Administrator Lee Zeldin has taken immediate action upon discovering that these billions were being funneled to eight politically connected non-governmental organizations, some of which were hastily created and lacked proper qualifications to manage such enormous sums.

The FBI has formally requested that all disbursements be halted for at least 30 days while criminal investigators examine the concerning patterns of financial activity. This decisive action protects taxpayers from what appears to be yet another example of the previous administration’s questionable financial management and political favoritism. The fund, part of a larger $27 billion clean energy initiative, had already begun making payments to organizations like the Climate United Fund and the Coalition for Green Capital before red flags prompted officials to intervene and stop further distribution.

Left-Wing Backlash and Legal Challenges

Predictably, the decision to freeze these funds has triggered outrage from climate activists and Democrat lawmakers who had been counting on this massive influx of cash. Senator Sheldon Whitehouse has led the charge, accusing the EPA of “misusing law enforcement” to serve what he characterizes as “vindictive political whims.” This rhetoric is typical of the left’s reaction when their spending programs face legitimate scrutiny. Whitehouse has gone so far as to demand information from Attorney General Pam Bondi and FBI Director Kash Patel about the investigation, attempting to frame fiscal responsibility as a political attack.

“Citibank has been instructed by EPA and the Department of Treasury to pause all further disbursements,” stated an attorney for Citibank, confirming the bank is simply following federal government directives as legally required.

Several fund recipients, including an organization called Power Forward Communities, have filed lawsuits against Citibank, claiming breach of contract over the withheld funds. These legal challenges ignore the fundamental fact that Citibank is legally required to follow government instructions when handling federal funds and cannot release money that is subject to a criminal investigation, regardless of prior arrangements with recipients.

Protecting Taxpayers from Wasteful Climate Spending

EPA Administrator Zeldin has described the freeze as ” the most consequential day of deregulation in U.S. history,” signaling the administration’s commitment to responsible fiscal management after years of unchecked spending on dubious climate initiatives. The Inspector General of the EPA is also conducting a thorough investigation of the entire GGRF program to determine how such a massive amount of taxpayer money was allocated to politically connected organizations with little oversight or accountability. This represents a critical step toward ending the practice of using climate change as a pretext for funneling billions to favored liberal groups.

“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,” explained Citibank counsel K. Winn Allen, emphasizing the bank’s compliance requirements.

A court hearing has been scheduled to potentially reveal the specific misconduct allegations against Climate United and other fund recipients. The outcome of this hearing may provide taxpayers with insight into exactly how their money was being misused and justify the Trump administration’s quick action to stop further wasteful spending. This intervention demonstrates the administration’s commitment to protecting Americans from questionable government expenditures that do little to help ordinary citizens while enriching politically connected organizations under the guise of environmental protection.

Sources:

  1. EPA accused of faking criminal investigation to claw back climate funds – Ars Technica
  2. Trump administration demands Citibank freeze Biden’s $20B climate slush fund due to criminal probe

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