In a court application Wednesday, Citibank said the FBI, EPA, EPA inspectors and the Treasury Department had all requested that the banks freeze freeze accounts for several nonprofits and state government agencies.
The account was frozen in February, but the new document produces previously unknown public details, including a complete list of nonprofits under FBI scrutiny.
The funds were paid as part of the $27 billion Greenhouse Gas Reduction Fund, created by the Inflation Reduction Act, a law passed by Congress in 2022.
Greenbank uses these funds to fund clean technology projects across the country. Startups with technology ready to scale commercially were eligible for funding to make the project come true.
The funds were primarily used for loans and were to be repaid and recycled for future loans. Green Banks tend to have delinquency fees comparable to commercial and residential portfolios held by other commercial lenders.
Citibank was chosen as the financial agent to manage its money and held it in the account in the name of the recipient. It also manages another $6 billion clean community investment accelerator program. EPA’s contract with Citibank was made public in April 2024.
The FBI has requested that Citibank receive a 30-day administrative freeze on accounts held by the nonprofit that are the recipients of Green Bank’s funding. It also asked banks to freeze accounts from other nonprofits and state government agencies, including Habitat for Humanity, United Way, the Colorado Clean Energy Fund, and the New York State Department of Tax and Treasury.
Three nonprofits that received the Green Bank Fund have sued Citibank, asking the bank to publish the money into their accounts.
EPA administrator Lee Zeldin said the Greenhouse Gas Reduction Fund doesn’t match the agency’s priorities and is concerned about fraud, but it does not provide evidence to support its claims.
During a hearing Wednesday, a US District Court judge for the District of Columbia questioned a Justice Department attorney representing the EPA.
“Can you provide evidence of that? [the grant] Was any evidence of illegality or abuse, fraud or bribery that other than the fact that Mr Zeldin does not like it, was it that either of them was done inappropriately or illegally? “Judge Tanya Chakkan said.
Judge Chukkan also ordered the Justice Department to provide the court with details of the alleged fraud “because there is no reliable evidence necessary.”
Updated 3/13/25: Details have been added from Wednesday’s hearing.
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