03/08/2025 / By Laura Harris
The Biden administration has come under fire after revelations that at least $20 billion in taxpayer funds were funneled into environmental groups, many of which had only recently been established.
The funds, part of a $370 billion climate initiative overseen by longtime Democratic strategist John Podesta, involve the case of former Vice President Kamala Harris, who in April 2024 handed over a check for nearly $7 billion to Climate United Fund, a Bethesda, Maryland-based organization. (Related: House Republicans take aim at Biden’s climate overreach: A fight against junk science and government waste.)
Public records show that the non-profit was only incorporated in Delaware on Nov. 30, 2023, just five months before it received the massive grant. Moreover, the group does not appear in the Internal Revenue Service (IRS) charities database and has no federal filings.
The Climate United Fund celebrated the grant in a press release, calling it a “historic investment” that would help provide “cleaner air…and increased energy security.” However, the organization has not disclosed a detailed plan for how it intends to spend the billions it received.
Some projects have been announced, such as a $10.8 million pre-development loan for a solar project on Tribal lands in Oregon and Idaho and a $32 million solar energy initiative at the University of Arkansas, but these commitments represent only a fraction of the total funding.
The financial trail only becomes murkier upon further examination, when three separate entities called Calvert Impact, all based in Bethesda, making it difficult to track the flow of funds. Additionally, the Justice Climate Fund, another non-profit set up in 2023, received $940 million from the Environmental Protection Agency (EPA) but has yet to file any tax documents or disclose its leadership structure.
Another recipient of these grants, Power Forward Communities Inc., was also established in 2023 and initially reported just $100 in revenue in its tax filings. Despite this, the Columbia, Maryland-based non-profit secured a staggering $2 billion from the EPA’s climate fund.
The organization claims to be part of a coalition that includes United Way Worldwide and Rewiring America, a Washington, D.C.-based non-profit that hired former Democratic Rep. Stacey Abrams as corporate counsel in 2023. Notably, Rewiring America itself was only registered as a corporate entity in December 2024.
Power Forward Communities has stated that it has already committed $539 million to projects such as affordable housing expansions, air quality improvements and job creation in the energy sector. However, the group provides little transparency regarding its financial operations. It lists job openings for key positions, including a Government Affairs VP and a Communications VP, but it does not disclose its board members on its website.
Furthermore, the presence of Tim Mayopoulos, former CEO of Fannie Mae and a Democratic donor, as interim president and CEO of Power Forward Communities complicates the matter. Federal filings indicate that Mayopoulos contributed $5,600 to former President Joe Biden’s 2020 presidential campaign.
These revelations have raised ethical concerns from charity watchdogs over the decision to route taxpayer money through newly formed organizations instead of established environmental groups with proven track records.
“Ethically speaking, it’s concerning,” said CEO Laurie Styron of Charity Watch, an independent charity watchdog group. “What was the purpose of creating middlemen entities when there are so many established groups in the climate space with good track records? What was the value-added in [by] doing it this way, especially with such large sums of taxpayer funds?”
Moreover, these opaque financial dealings have drawn the attention of federal law enforcement, prompting investigations by both the Federal Bureau of Investigation (FBI) and the Department of Justice (DOJ).
The Federal Bureau of Investigation and the Department of Justice have launched investigations into the grants and billions of dollars held in associated bank accounts have been frozen as the EPA attempts to recover the funds.
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