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Some Green Groups Are Running Out of Cash After Trump Freezes $20 Billion

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Some Green Groups Are Running Out of Cash After Trump Freezes  Billion

Two weeks after their bank accounts were frozen amid a swirl of investigations by the Trump administration, nonprofit organizations that were supposed to receive $20 billion to help curb climate change are still unable to withdraw money, raising concerns about their ability to pay staff.

The accounts were frozen by Citibank, which holds the money, after Lee Zeldin, the Environmental Protection Agency administrator, suggested there was potential fraud and the F.B.I. and Department of Justice launched investigations. Those inquiries went forward despite the determination by a top federal prosecutor that there was not enough evidence to open a grand jury criminal probe. Citibank declined to comment.

Mr. Zeldin has criticized the policy and the structure of the program that was created by Congress and run by the Biden administration. He called for the money to be returned to the federal government, but has presented no evidence that a crime has been committed. This week, he asked for a third, concurrent investigation by his agency’s acting inspector general.

Climate United, which received almost $7 billion under the program to distribute to other organizations, said Tuesday that it is struggling to make payroll, and individual project developers cannot withdraw the money they were promised.

“These relationships take many months to build and are in jeopardy if funding freezes continue,” said Brooke Durham, a Climate United spokeswoman.

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On Tuesday, lawyers for Climate United asked the E.P.A. to justify its actions. In a letter to the agency, the lawyers detailed Climate United’s efforts to meet with E.P.A. representatives, adding that the agency canceled a Feb. 25 meeting after learning that Climate United’s lawyers would be present.

The Trump administration has for the last six weeks attempted to find malfeasance connected to the distribution of money from the Inflation Reduction Act, the Biden administration’s signature climate law. The law provides tax incentives for clean energy manufacturing, and also calls for the E.P.A. to issue billions of dollars worth of grants to states, tribes, nonprofit groups and others to reduce emissions from fossil fuels, the main driver of climate change.

Mr. Zeldin has taken particular aim at $20 billion obligated in April that came from a program called the Greenhouse Gas Reduction Fund, which is sometimes known by the shorthand “green bank” funding.

Under it, Congress required the E.P.A. to award grants to organizations that in turn would offer loans and grants to businesses, homeowners and others to spur clean energy across the country, particularly in low-income neighborhoods. Funds were held in Citibank accounts under the names of the grantees.

Former Vice President Kamala Harris was a champion of the program, calling it “the largest investment in financing for community-based climate projects in our nation’s history.”

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The Trump administration has run into roadblocks in its efforts to claw back the funding. Denise Cheung, a top federal prosecutor in D.C., refused to order that Citibank freeze the funds, citing a lack of evidence of possible criminal activity.

Last month, she wrote in a letter, obtained by The New York Times, that she was asked to step down by the interim U.S. attorney in Washington, Ed Martin, after she determined there was not enough evidence to open a grand jury criminal investigation or to order a bank to freeze the accounts.

The Trump administration appears to be basing its portrayal of the program as somehow criminal on a hidden-camera video produced last year by Project Veritas, a right-wing group known for trying to entrap political opponents with covert recordings.

In the video, shot at a bar or restaurant toward the end of the Biden administration, Brent Efron, then an E.P.A. employee, is asked about his job by an unidentified male who gushed “amazing,” when Mr. Efron said he worked on climate change.

At one point in the video, Mr. Efron refers to “green banks,” which he tells the person covertly recording him are nonprofit institutions that make it more financially feasible to build renewable energy projects.

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Project Veritas edited the video to then cut to a different part of their conversation in which Mr. Efron was describing how there was a rush to finish obligating funds that had been authorized by Congress before the Trump administration took office.

“It truly feels like we’re on the Titanic and we’re throwing like gold bars off the edge,” Mr. Efron said in the video.

Mr. Zeldin and other Trump officials now frequently invoke the “gold bars” phrase to suggest the prior administration was rushing to spend tax dollars in ways that were vulnerable to waste, fraud and abuse.

But a lawyer for Mr. Efron, Mark Zaid, said his client, whom he portrayed as “the victim of a Project Veritas attack,” was not referring to the frozen funds.

“He is the one who made that ‘gold bars’ statement that Zeldin keeps seizing on, but it has nothing to do with this Greenhouse Gas Reduction Fund,” Mr. Zaid said. “He wasn’t talking about that. Those funds were already allocated and obligated.”

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In the Project Veritas video, after using the “gold bars” phrase, Mr. Efron was asked who was getting the gold bars. He replied “nonprofits, states, tribes, cities” adding: “a lot of them are small, like, local nonprofits.”

Mr. Efron has been contacted by both the office of the E.P.A. inspector general and by an agent with the Washington field office of the F.B.I., according to Mr. Zaid.

The F.B.I. agent left a card at Mr. Efron’s home. Mr. Zaid said that on behalf of his client, he called the agent, who told him he had been sent by a prosecutor in the Southern District of Florida. But “that disappeared very quickly, and I am in discussion with the D.O.J. right now to better understand what is actually going on,” Mr. Zaid said.

There had been, he said, a “strange bouncing around of which U.S. attorney was going to handle this case.”

The person with the office of the E.P.A. inspector general — one of the many watchdog agencies whose leaders have been purged by Mr. Trump — sent Mr. Efron an email to which Mr. Zaid replied, the lawyer said, but he had not heard back.

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Right-wing media outlets have labeled the green bank a slush fund and highlighted a link between fund recipients and Stacey Abrams, a Democratic organizer and former candidate for governor in Georgia.

Ms. Abrams served for one year as a senior counsel for Rewiring America, one of the nonprofit groups that stood to receive control of $2 billion to administer loans to different climate programs.

The Trump administration has also claimed that funding was awarded to organizations with ties to the Biden White House. Mr. Zeldin repeated these conflict of interest claims in his Monday letter to the Office of the Inspector General seeking further investigation.

John Podesta, who oversaw implementation of the Inflation Reduction Act as a senior climate adviser to the Biden administration, said in an interview that the process for issuing grants was “extremely” stringent and called the Trump administration attacks politically motivated.

“We knew it was a possibility that they’d try to interfere with people getting access to their money,” Mr. Podesta said of the Trump administration. In recent weeks the Trump administration also has frozen billions of dollars that were appropriated by Congress for clean energy projects, releasing some of the money only after two judges ordered it.

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“We followed the law and they are breaking the law,” Mr. Podesta said.

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China Launches Reusable Rocket in Race With SpaceX

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Video released by Chinese state media shows a state-owned aerospace company launching a rocket and recovering part of it on Friday. The successful launch of a reusable rocket was a major step for China toward challenging SpaceX’s satellite internet dominance.

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Nobel Prize winner leaving UC Berkeley for new role in China

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Nobel Prize winner leaving UC Berkeley for new role in China

Nobel Prize recipient Omar Yaghi is leaving his role at UC Berkeley to lead the development of a new artificial intelligence institute at Tsinghua University in Beijing, the Chinese university announced.

Yaghi will head the AI Chemistry and Materials Research Institute at Tsinghua, where he was appointed an honorary professor in 2022. Known as AIMATRY (AI × Materials × Chemistry), the new center will focus on material design and synthesis through artificial intelligence, according to a statement from the university.

In 2025, Yaghi shared the Nobel Prize in chemistry with Susumu Kitagawa of Kyoto University and Richard Robson of the University of Melbourne for their development of metal-organic frameworks, a type of super-porous material in which metal ions and carbon-based molecules combine to form crystals with exceptionally large surface areas.

The material has the potential to combat climate change by capturing and storing carbon or other pollutants, and by extracting water from the atmosphere in water-scarce areas. Upon awarding the prize, a member of the Nobel committee likened the technology’s ability to store enormous amounts of stuff in seemingly compact spaces to Hermione Granger’s enchanted handbag in the Harry Potter series.

Yaghi’s Irvine-based company, Atoco, has said it will start taking orders later this year for its technology that harvests water from the air.

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A representative for Yaghi said he was not yet available to respond to questions.

China is one of several countries that has been actively recruiting scientists from the U.S., where the Trump administration has slashed science funding, suspended research grants, fired science advisors and tightened immigration restrictions.

“For many, many years, our funding was very competitive; if you worked hard and you were doing good research, you would get funding,” Yaghi said of the U.S. in an interview with Scientific American earlier this year. “The current state is not so encouraging because of the cutting back on grants and support of science by the very agencies that many university researchers rely on.”

Yaghi was born in Jordan to Palestinian refugees, and immigrated to the U.S. when he was 15 to study.

“We’ve learned over and over in human civilization that scholars can move across borders,” Yaghi told the New York Times last year. “This is how knowledge spread and how vast regions of the world lifted themselves out of poverty.”

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Trump administration seeks to limit federal funding that doesn’t ‘advance’ presidential policies

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Trump administration seeks to limit federal funding that doesn’t ‘advance’ presidential policies

A new rule proposed by the White House Office of Management and Budget would fundamentally overhaul the way federal grants are awarded and overseen — a sweeping change that one scientific society said “would all but end the use of scientific merit in the selection of grants and programs across the government.”

Proposed in late May, the rule would give political appointees unprecedented control over federal grants for research, education and infrastructure, and specifies that government funds can only be spent on projects “aligned with administration policies and priorities,” according to a copy of the proposed rule.

The rule would also restrict research topics, limit U.S. scientists’ ability to collaborate with colleagues in other countries and make it easier for the government to suspend or cancel grants at any time.

The changes are intended to improve “transparency, accountability, and oversight for Federal awards” while “ensuring that American tax dollars are not wasted or misused,” according to the White House office.

But critics say that if the rule is implemented, the final sign-off for grants will no longer be in the hands of subject-matter experts within individual agencies, but in those of political appointees.

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“This touches all parts of American life,” said Dr. Eric Rafla-Yuan, a psychiatrist who practices at the Veterans Administration and San Diego County’s psychiatric hospital.

“Control of how all of the federal grants and programs are funded will fall under a small group of highly partisan individuals who would have very few limits on how they spend these billions of taxpayer dollars,” said Rafla-Yuan, who also chairs the Committee to Protect Public Mental Health advocacy group. “This touches everyone’s life, even if they don’t realize it.”

OMB published the proposed rule May 29, opening a 45-day comment period that closes July 13.

Opposition to the proposed rule has mobilized multiple sectors of society. Professional groups representing cancer researchers, civil engineers, county governments, medical schools, housing agencies, city and municipal governments, nonprofits and others have publicly expressed concerns about potential consequences.

By midday Thursday, the Federal Register logged nearly 100,000 comments about the proposal, many of them expressing concern.

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“I understand the need for oversight, fiscal responsibility, and accountability. That is not the issue,” wrote Jack Feldman, a neuroscientist who holds the David Geffen School of Medicine Chair in Neuroscience at UCLA. “The issue is whether scientific research is to be judged by scientific merit, or whether it can be approved, denied, or terminated according to broad political criteria that may change from one administration to the next.”

Crucially, the rule converts policies governing federal grants from “guidance” into binding regulations that all agencies would be required to follow. It would give political appointees power to override federal agencies’ merit-based reviews and mandate that a political appointee review decisions to ensure that all awards “demonstrably advance the President’s policy priorities.”

The elevation of political appointees in what were previously merit-based decisions has alarmed many scientists.

“The proposed rule changes would all but end the use of scientific merit in the selection of grants and programs across the government,” read a statement from the Planetary Society, a nonprofit dedicated to space research.

Researchers and science groups have also expressed concern about a section of the rule prohibiting the promotion of “theories of disparate-impact liability” — a legal concept that refers to policies that appear neutral but cause disproportionate harm to certain groups.

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The section’s vague language and many loopholes could have a chilling effect on any research that studies the effects of a disease, policy or public health intervention on any specific group of people, Rafla-Yuan said.

As an example, he said, “if there’s a specific age range that is at higher risk for suicide, and we want to figure out, well, what’s going on with people that are aged 14 to 19 … we can’t do that under the wording in this rule.”

New restrictions on collaborations with scientists in other countries would hinder opportunities for U.S. researchers and limit innovation, said Joanne Padrón Carney, chief government relations officer for the American Assn. for the Advancement of Science.

“Science is a global enterprise. Especially in biomedical and public health fields, diseases don’t care about borders or government policies,” she said.

California’s congressional delegation sent a letter Wednesday asking OMB to rescind the proposal, outlining concerns about its impact on scientific innovation, U.S. competitiveness and the fiscal stability of local governments, many of which rely on federal grants for local services.

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The proposed rule grants the federal government broad powers to suspend or cancel grants for any reason, introducing “unprecedented unpredictability into local governance,” the lawmakers wrote, “leaving vital infrastructure projects unfinished and abandoning vulnerable populations who rely on these services.”

Republican Sen. Susan Collins has also asked the White House to withdraw certain parts of the letter and extend the public comment period, saying the proposed rule as written would “harm small and rural communities, undermine scientific and biomedical research, and conflict with Congress’ control over the federal funding process.”

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