What’s Behind the EPA’s ‘Gold Bars’ Controversy? Trump Administration Targets Green Energy Funds

The Environmental Protection Agency (EPA) is at the center of a political storm as the Trump administration moves to reclaim $20 billion allocated for clean energy projects under President Biden. The controversy has been fueled by a viral phrase—“gold bars”—which has become central to the effort to reverse a key Biden-era climate initiative.

During Biden’s presidency, the Greenhouse Gas Reduction Fund (GGRF) received $27 billion through the 2022 Inflation Reduction Act to support pollution-reduction projects, particularly in low-income, Native, and rural communities. These funds were placed under the management of private financial institutions to ensure they effectively reached communities in need.

However, since taking office, President Trump and EPA nominee Lee Zeldin have pushed to claw back at least $20 billion of these funds, arguing that the money should be under federal control. Zeldin’s justification came from a secretly recorded comment from an EPA employee, who likened the swift distribution of funds to “throwing gold bars off the Titanic.” A video released by the controversial group Project Veritas captured the remark, sparking political backlash.

Zeldin has suggested that a significant portion of the funds had been “parked” at a private financial institution, implying possible mismanagement. However, reports from Bloomberg and The Washington Post confirmed that Citi Bank was overseeing the funds. Even Zeldin later admitted there was “zero reason to suspect wrongdoing” by Citi. Despite this, the Trump administration continues to push for the funds’ return to the federal government, a move that has drawn sharp criticism from Democrats and environmental advocates.

The GGRF was specifically designed to accelerate clean energy programs and reduce greenhouse gas emissions. One major recipient, Climate United, was awarded $7 billion to implement green energy projects. Experts warn that withdrawing funds now could disrupt numerous ongoing and planned initiatives. Kyle Kammien, policy director at Dream.Org, stated that cutting off these funds would be a “huge blow” to communities that depend on them.

The decision is already facing legal and political resistance. Senate Democrats, environmental organizations, and legal scholars argue that the Inflation Reduction Act, which authorized the GGRF, was passed by Congress, limiting the Trump administration’s ability to reclaim the allocated funds. Lawsuits challenging the attempt are likely to follow, setting the stage for a prolonged battle in court.

This effort to pull back clean energy funding aligns with a broader Republican push to dismantle Biden-era climate policies. Since returning to office, Trump has targeted regulations, financial incentives, and environmental protections implemented over the last four years. The final outcome regarding the GGRF funds remains uncertain, but what is clear is that this dispute represents a significant moment in the ongoing clash over U.S. climate policy.