The Trump administration is attempting to reclaim around $20 billion in funding that was previously awarded to reduce air pollution and greenhouse gas emissions, sparking a potential legal battle. The move is seen as an effort to undo climate-related initiatives introduced by the Biden administration.

Lee Zeldin, Trump's appointee to lead the Environmental Protection Agency (EPA), posted a cryptic video and press release claiming that "roughly $20 billion of your tax dollars were parked at an outside financial institution by the Biden EPA." Zeldin later clarified that there was no suspicion of wrongdoing by the bank, but the financial agent agreement with the bank needed to be terminated, and the money returned to the EPA.

The funding in question appears to be related to the $27 billion Greenhouse Gas Reduction Fund (GGRF) created by the 2022 Inflation Reduction Act. The GGRF aims to prevent pollution by supporting new clean energy projects, particularly in low-income neighborhoods, Native and rural communities, and other underserved areas.

Kyle Kammien, a policy director at nonprofit Dream.Org, expressed concern that the move would block tens of billions of dollars in public-private partnerships from investing in projects across the country. "Whether it is a local credit union offering low-interest loans to small businesses to install solar panels and lower their electricity bills, or a municipality securing funding to upgrade century-old buildings with modern windows and HVAC systems, these projects are now uncertain," Kammien said.

Zeldin's reference to the funding as "gold bars" is believed to be related to a video from the right-wing group Project Veritas, which filmed an EPA employee talking about distributing funding to nonprofit organizations, states, and tribes. The employee was quoted as saying, "now we're just trying to get the money out as fast as possible before they can come in and stop it all … it truly like feels we're on the Titanic and we're throwing gold bars off the edge."

Zeldin claims that his team has found the "gold bars," referring to $20 billion in funding for groups including a coalition of nonprofits called Climate United. The coalition was awarded close to $7 billion through one of the programs of the Greenhouse Gas Reduction Fund, although Zeldin did not specifically name the GGRF.

The EPA did not immediately respond to a press inquiry about which programs Zeldin is targeting. However, Bloomberg and The Washington Post report that his comments indicate that the EPA administrator intends to stop GGRF funding, with Citi overseeing the distribution of those funds.

Zeldin described the Biden-era awards as "a rush job with reduced oversight" in his video address. Democratic lawmakers have challenged Trump's ability to claw back funding approved by Congress through the Inflation Reduction Act, setting the stage for a potential legal battle.

The move is seen as part of Trump's broader effort to undo climate-related initiatives introduced by the Biden administration. Trump campaigned on a pledge to "rescind" unspent IRA funds, and this latest move is likely to spark intense debate and opposition from environmental groups and lawmakers.

As the situation unfolds, it remains to be seen how successful the Trump administration will be in reclaiming the funding and what the implications will be for the environment and the communities that rely on these initiatives.