Citibank revealed in court filing Wednesday that the FBI, EPA, EPA Inspector General and the Treasury all asked the banks to freeze accounts of several nonprofit organizations and state government agencies.
These accounts were frozen in February, but New file Conduct previously unknown public details, including a complete list of nonprofits under FBI review.
The funds are part of a $27 billion greenhouse gas reduction fund created by the Inflation Reduction Act (Act). Congress passed in 2022. Among them, EPA received National Clean Investment Fund $14 billionprovide grants to green banks.
Green Banks use these funds to finance clean technology projects across the country. Startups with technologies that are ready to expand commercially are eligible for financing to make the project a reality.
This fund is mainly used for loans, which will be repaid and recycled as future loans. Green banks tend to be comparable to commercial and residential portfolios held by other commercial lenders.
Citibank was selected as the financial agent to manage the money, holding it in the name of the winner. It also manages a separate $6 billion clean community investment accelerator program. The EPA contract with Citibank was announced publicly in April 2024.
The FBI has asked Citibank to freeze 30 days of administrative freezes of accounts held by nonprofits from green bank funds recipients. It also requires banks to freeze accounts of other nonprofit organizations and state government agencies, including UN-Habitat, United Way, Colorado Clean Energy Fund, and the New York State Department of Taxation and Finance.
Three nonprofits that received green bank funds sued Citibank, asking banks to release the money in their accounts.
EPA administrator Lee Zeldin said the Greenhouse Gas Reduction Fund did not match the agency’s priorities and his focus on fraud, although he provided no evidence to support the claim.
A judge in the District Court of Columbia challenged the Justice Department attorney representing the EPA at a hearing Wednesday.
“Can you provide any evidence to show [the grant] Apart from the fact that Mr. Zeldin doesn’t like, is this illegal, or evidence of abuse, fraud or bribery, is it improper or illegal? “Judge Tanya Chutkan explain.
Judge Chukan also ordered the Justice Department to provide the court with detailed information about the fraud, “because I have no reliable evidence.”
Updated 3/13/25: Added details from Wednesday’s hearing.
