Billion-Dollar Green Funds

“I want to use my position of leadership to help move along at a faster pace what I believe and know the Obama administration wants to do around the urgency of climate change.” –Kamala Harris

The Justice Climate Fund. Heard of it? Probably not. There isn’t much out there, yet it’s an overnight sensation. Just months after it was granted nonprofit status, it scored $940 million from the Biden administration. All part of the $27 billion Greenhouse Gas Reduction Fund. Officially, it’s aimed at cutting emissions and pollution. But a billion bucks for a barely-known newcomer? That’s just the start.

  • Newly established nonprofits like the Justice Climate Fund are receiving billions from the EPA’s Greenhouse Gas Reduction Fund, raising questions over transparency and oversight.
  • Key recipients, including politically connected organizations, received funding shortly after obtaining nonprofit status, sparking concerns about political motivations.
  • Critics question the EPA’s ability to manage such unprecedented funds, as well as the accountability for taxpayer money in this untested funding model.

The Justice Climate Fund isn’t alone. Meet Power Forward Communities. Another new face. Just $100 in revenue last year, then $2 billion in funding this year. Awarded by the Environmental Protection Agency. An agency that’s never handled grants like this before. Even their inspector general admitted it’s a “fantastically complex” setup. Oversight? Slim, at best.

Then there’s the biggest winner: the Climate United Fund. A whopping $6.97 billion coming its way. On its board are big Democratic names like former California State Treasurer Phil Angelides. They also listed Anthony Foxx, ex-Obama Transportation Secretary, as a board member. But now, after the article came out, the Climate United Fund says Foxx didn’t commit. Odd timing for an “update,” wouldn’t you say?

The Bigger Picture

This Greenhouse Gas Reduction Fund is part of the 2022 Inflation Reduction Act. Big money is pouring in, with billions at stake and little clarity on where it’s all going. The EPA itself has zero experience managing funds of this size, especially with these newly-minted nonprofits. Lawmakers are watching closely, asking how billions of taxpayer dollars will be spent—and who’s actually keeping track.

Critics aren’t buying it. Mandy Gunasekara, Trump’s former EPA chief of staff, says it straight: “These groups are political front groups created to funnel taxpayer dollars to Democrat campaigns under the guise of doing something good.”

It’s a lot of cash, little oversight, and a whole lot of political connections. Who’s really getting rich here?

The Morning Muster