Clean Energy Projects to Receive $20 Billion Funding Boost from Biden’s ‘Green Bank’

by Sophia Chen
Clean Energy Funding

The Biden Administration is channeling $20 billion from a federal ‘green bank’ to support clean energy initiatives. These projects range from residential heat pumps and electric vehicle charging stations to community cooling centers.

Two separate programs, valued at $14 billion and $6 billion respectively, are set to offer competitive grants to nonprofits and other entities committed to clean energy initiatives. Emphasis will be given to underprivileged communities, as announced by the White House.

On Friday, the grant competitions will be launched by Vice President Kamala Harris, the Environmental Protection Agency (EPA) Administrator Michael Regan, and other officials at a historically black university in Baltimore.

The green bank, officially titled the Greenhouse Gas Reduction Fund, was established by Congress under last year’s climate law. This followed a $7 billion Solar for All program initiated last month to promote residential and community solar projects in low-income areas. All three programs are under the purview of the green bank, with grant awards slated for next year.

The grant programs are part of an effort to confront the climate crisis while simultaneously restructuring the economy, according to Regan. He emphasized that these programs will provide significant resources for disadvantaged communities that are often overlooked by traditional banks and investors.

Regan highlighted to The Big Big News that these neglected communities have been left out of this transition. He believes this initiative sends a strong message to the market, encouraging private capital to invest in urban and overlooked areas.

The National Clean Investment Fund, worth $14 billion, will award grants to a maximum of three national clean financing institutions. This partnership will provide affordable financing for thousands of clean technology projects across the country, as reported by the EPA.

The Clean Communities Investment Accelerator, worth $6 billion, will offer grants to up to seven nonprofits. These nonprofits will collaborate with other entities to facilitate access to investments needed for clean technology projects. Community lenders, credit unions, housing finance agencies, and other institutions will finance clean technology initiatives in low-income and disadvantaged communities.

Democratic Senator Chris Van Hollen from Maryland, who first proposed legislation to establish a national green bank 14 years ago, suggested that these grants will expedite the adoption of clean energy in communities like Baltimore, which have been disproportionately affected by pollution and climate change.

He stressed that these funds will catalyze private investment in clean energy projects, promoting environmental justice in underserved communities. Van Hollen views this as a victory for workers, the economy, and the fight against climate change.

Grants from the National Clean Investment Fund will facilitate access to necessary capital for a range of clean-energy projects. These projects will benefit individuals, families, nonprofits, state and local governments, and small businesses. The projects aim to reduce air and water pollution while generating jobs and reducing energy costs.

Potential projects include urban cooling centers for areas affected by extreme heat, charging stations for electric vehicles, retrofitting buildings, and installing efficient heating and cooling systems. Regan expressed that this initiative aims to improve the quality of life with clean energy technology.

Officials expect that the green bank, modeled on similar banks in Connecticut, New York, and California, will stimulate billions of dollars in private investment.

Republicans in Congress have criticized the green bank, referring to it as a taxpayer-funded “slush fund” prone to misuse. GOP legislation passed in March aims to withdraw the green bank’s funds. They argue that the fund benefits Wall Street firms rather than reducing heating costs for American families.

Regan challenged this criticism, stating that considerable effort was put into designing the fund. He assured a robust reporting system on the use of these funds, focusing on low-carbon strategies and inclusivity.

Frequently Asked Questions (FAQs) about Clean Energy Funding

How much funding is the Biden administration providing for clean energy projects?

The Biden administration is providing $20 billion in funding for clean energy projects through a federal ‘green bank’.

What kinds of projects are being supported by this funding?

The funds will support a variety of clean energy projects such as residential heat pumps, electric vehicle charging stations, and community cooling centers.

Who will manage the grant programs from the ‘green bank’?

The ‘green bank’, also known as the Greenhouse Gas Reduction Fund, will oversee the grant programs.

What was the ‘green bank’ established for?

The ‘green bank’ was established by Congress under last year’s climate law with the purpose of funding clean energy initiatives.

Who is eligible to receive these grants?

These grants are available for nonprofits, other groups, and potentially individuals, families, and small businesses who are invested in clean energy projects. Special focus will be given to underprivileged communities.

What criticisms have been raised about the green bank?

Republicans in Congress have criticized the green bank, claiming it to be a taxpayer-funded “slush fund” prone to misuse and that it benefits Wall Street firms more than ordinary American families.

How does the administration plan to ensure accountability for the use of these funds?

EPA Administrator Michael Regan has stated that there will be a rigorous reporting system to track how the funds are being invested, particularly in low-carbon strategies and inclusivity efforts.

More about Clean Energy Funding

You may also like


GreenActivist July 14, 2023 - 7:38 pm

Amazing news! More investment in clean energy is just what we need. It’s about time!

RonTheRealist July 14, 2023 - 8:48 pm

It’s all talk no action until we see some real results, don’t trust these politicians.

EnvironmentLover101 July 14, 2023 - 10:46 pm

fantastic news!!! this is exactly what we need, more investments in clean energy.

JimmyZed July 15, 2023 - 4:14 am

Wow, that’s a lot of moolah for clean energy. Good on Biden, hope it really helps people and isn’t wasted!

CleanFuture July 15, 2023 - 5:27 am

So excited about this!! Let’s clean up our act and save the planet!

CynicalSally July 15, 2023 - 8:35 am

sounds good on paper… But we’ll see how it actually plays out.

Skeptic42 July 15, 2023 - 9:20 am

so what now?? Billion dollars and what if it all goes to big corporations and not to the people who need it… Typical politics.

TaxPayerJoe July 15, 2023 - 3:06 pm

great now my tax dollars r going into another “fund”. Hope this isn’t another empty promise…


Leave a Comment


BNB – Big Big News is a news portal that offers the latest news from around the world. BNB – Big Big News focuses on providing readers with the most up-to-date information from the U.S. and abroad, covering a wide range of topics, including politics, sports, entertainment, business, health, and more.

Editors' Picks

Latest News

© 2023 BBN – Big Big News