Habitat for Humanity is among nonprofits the Trump administration claims benefited from “programmatic fraud, waste and abuse” through a climate action fund authorized by Congress.
Not only has Trump shut down the Greenhouse Gas Reduction Fund, the Environmental Protection Agency and Federal Bureau of Investigation have been charged with investigating several nonprofits for their participation in it.
“This is a whole new level of evil,” Occupy Democrats said about Habitat and other nonprofits under investigation for receiving grants from the Biden administration. “This weaponization of the FBI is a blatant attempt to undermine the consensus around climate change so that the Trump administration can pump even more money into the pockets of fossil fuel companies.”
“This weaponization of the FBI is a blatant attempt to undermine the consensus around climate change.”
Labeling the fight against climate change as “fraud” is MAGA’s way of denying the existence of climate change, the post continues. “It wasn’t enough for the Trump administration to simply revoke the federal grants in question — they’re alleging fraud to intimidate and terrorize climate advocates everywhere. As deeply disturbing as these developments are, they’re hardly a surprise.”
At issue is the Greenhouse Gas Reduction Fund, which was authorized by Congress through the Inflation Reduction Act. That act created a historic $27 billion investment to combat the climate crisis “by mobilizing financing and private capital for greenhouse gas- and air pollution-reducing projects in communities across the country.”
One aim of the legislation was to “spur adoption of clean distributed solar energy that lowers energy bills for millions of Americans in low-income and disadvantaged communities.”
The Trump administration — which denies climate change is caused by human action — announced March 11 it would shut down the program even though it was mandated by congressional action. As with other programs shuttered by the new administration, Trump claims he has authority to override the will of Congress.
Lee Zeldin
New EPA Administrator Lee Zeldin described the Greenhouse Gas Reduction Fund as a “scheme” operated outside government oversight by the Biden administration.
“This termination is based on substantial concerns regarding the Greenhouse Gas Reduction Fund program integrity, the award process, programmatic fraud, waste, and abuse, and misalignment with agency’s priorities, which collectively undermine the fundamental goals and statutory objectives of the award,” Zeldin said.
Ahead of the EPA announcement, the FBI requested funds administrator Citibank to freeze all accounts associated with the program for 30 days as its investigation continues. The FBI identified Habitat for Humanity, United Way, the Colorado Clean Energy Fund, Michigan Saves and the New Jersey Green Bank among those to be investigated.
“This recommendation is being made following credible information received by the Federal Bureau of Investigation that the above account(s) has been involved in possible criminal violations,” according to the FBI request.
After complying with the request, Citibank and the EPA were sued by recipient Climate United Fund March 8 in the U.S. District Court for the District of Columbia. The complaint provides insight into the hardships the government action is causing nonprofits.
“Defendants’ unlawful actions are causing Climate United to suffer real and immediate harm. Climate United does not have other committed sources of funding to replace the grant funds,” according to the suit. “Without those grant funds, Climate United will shortly run out of cash to pay operating expenses — it will no longer be able to pay its employees, pay rent, pay critical service providers and contractors, or meet its commitments under the loans and awards it has already approved.”
Further, the EPA has engaged “behind the scenes efforts” to guarantee Citibank’s compliance, the suit contends. “These efforts resulted in the public resignation of the chief of the Criminal Division of the D.C. U.S. Attorney’s Office, after more than 24 years in that office, following her refusal to carry out an illegal directive to send a letter to Citibank demanding that it freeze GGRF funds.”
Former U.S. President Jimmy Carter works at a Habitat for Humanity building site in Memphis, Tenn., Nov. 2, 2015. (AP Photo/Mark Humphrey)
Running roughshod over nonprofits engaged in social or political activities contrary to MAGA ideology is already a well-known page in the Trump administration playbook. Since taking office in January, Trump has denied contracted funds to international aid and refugee resettlement groups, always with accusations of criminal practices on the part of targeted organizations.
Government agencies or departments associated with such programs have been similarly attacked, including the U.S. Agency for International Development’s dismantling by Elon Musk’s Department of Government Efficiency. The Department of Education is being prepared for total closure.
In keeping with Trump’s approach, the EPA alerted its inspector general earlier this month to “urgent and deeply concerning matters” of fiscal mismanagement by recipients of the Greenhouse Gas Reduction Fund.
“To restore integrity and public trust, the Environmental Protection Agency has launched certain oversight and accountability measures that still exist despite the GGRF being designed to limit oversight,” the document said. “We have placed staff on administrative leave, begun a full assessment of internal controls, and are cooperating with the Department of Justice and Federal Bureau of Investigation in their ongoing investigation.”
Zeldin accused the Biden administration of wrongdoing in establishing the Congressionally mandated program — again without presenting any evidence to back up the assertion.
A preliminary hearing was held in the U.S. District Court for the District of Washington, D.C., on Tuesday, March 18. U.S. District Judge Tanya Chutkan granted, in part, a request by three of the grant recipients for Citibank to hold the funds previously committed to them while the legal challenges to the Trump order are sorted out.
“Vague and unsubstantiated assertions of fraud are insufficient.”
Judge Chutkan wrote: “When the court asked EPA to proffer evidence justifying its decision given the terms of the agreement, its only response was to refer to the termination letter, which gave no legal justification for the termination. While EPA defendants voice concerns regarding ‘program integrity,’ ‘programmatic fraud, waste, and abuse,’ and ‘the absence of adequate oversight and account controls to prevent financial mismanagement,’ vague and unsubstantiated assertions of fraud are insufficient.
“On the other side, plaintiffs face irreparable harm absent a TRO. By preserving the status quo, the court is not ‘forcing the government to undo its termination’ or allowing ‘grantees to access billions of dollars in grant funds,’ as EPA defendants argue. Preserving the status quo does not make these funds unrecoverable.”
While other organizations are suing to stop the change, Habitat for Humanity remains the best-known of the group but has made no public comment on the matter.
Habitat for Humanity was founded in 1976 by Linda and Millard Fuller after conceiving “partnership housing” while working at Koinonia Farm near Americus, Ga. Jimmy and Rosalyn Carter began volunteering with the organization during the 1980s and remained devoted volunteers for more than three decades.
U.S. Senator Andy Kim, D-N.J., responded on X: “More people need to see this. It cannot be understated. Trump is trying to criminalize the service of Habitat for Humanity and go after nonprofits who help people when they need it most. It is political retribution. It is unjust and it is a direct threat to our democracy.”
U.S. Sen. Senator Martin Heinrich, D-N.M., tweeted: “If you’re going after Habitat for Humanity, you’re the bad guy.”
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