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Future of Environmental Justice Center In Jeopardy Due To Federal Funding Freeze

The announcement of a freeze on federal funding for public loans and grants is likely to affect an environmental justice project for Memphis.

On January 27, a memorandum was leaked from the Office of Management and Budget to heads of executive departments and agencies. The letter ordered all federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance and other relevant agency activities that may be implicated by the executive orders.”

“This temporary pause will provide the Administration time to review agency programs and determine the best use of the funding for those programs consistent with the law and the President’s priorities,” the memorandum said. “The temporary pause will become effective on January 28, 2025, at 5:00 p.m.”

Prior to this announcement, Young, Gifted and Green, a non-profit environmental justice organization, received a nearly $20 million grant from the U.S. Environmental Protection Agency (EPA) as a result of the 2022 Inflation Reduction Act.  However, the organization said they are uncertain if these rewards “will actually be awarded.”

According to a statement from Congressman Steve Cohen (TN-9) This funding was meant to establish the Mid-South Environmental Justice Center along with a community engagement plan, coordinated workforce training in green jobs, and hands-on water and air-quality testing.

“As we have seen in recent years, with fights over pipelines, air quality and our sand aquifer, we must be vigilant in assuring our neighborhoods and their residents see true environmental justice,” Cohen said. “This EPA funding will create a center to coordinate the appropriate responses and help communities get and remain safe and healthy.”

LaTricea Adams, founder, president, and CEO of Young, Gifted and Green said while they wanted this to be a great opportunity for the city, they are unsure about its fate.

“With today’s announcement of the temporary pause on all federal funding/programs is definitely felt and impacts our award,“ Adams said in a statement. “Despite these extreme circumstances, our application was selected out of thousands across the country, and we have not given up faith that we will see this project persevere,” 

Adams said they will provide updates as they receive more information about the future of the project and their grant.

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Environmental Leaders Urge Public Transparency, Input On xAI Project

On Wednesday, community leaders and advocacy groups here called for more transparency surrounding Elon Musk’s xAI project, a project they openly oppose because of its negative environmental impact and disproportionate effect on minority communities.

These leaders gathered in front of the Downtown Memphis Commission office before a planned private meeting between xAI representative Brent Mayo and the Greater Memphis Chamber. Officials from Protect Our Aquifer, Memphis Community Against Pollution (MCAP), and Young, Gifted & Green released a joint statement saying Mayo has “ignored requests for dialogue and demands for transparency from the community.”

In July, the groups asked city leaders to deny an electricity deal for the project and demanded a public review of the project. A letter from the Southern Environmental Law Center (SELC) outlined community concern and condemned Memphis Light, Gas & Water (MLGW)’s CEO Doug McGowen for approving an electricity deal. 

According to SELC, MLGW has requested that the Tennessee Valley Authority (TVA) provide 150 megawatts of power to xAI. SELC said this demand is enough to power 100,000 homes. MCAP and Young, Gifted & Green joined the Sierra Club Tennessee Chapter and the Sierra Club Chickasaw Group in signing the SELC’s letter.

Many condemned the Chamber for its lack of transparency, specifically towards those in the Black community, and said its decision goes against the 17 principles of environmental justice. LaTricea D. Adams, founder, CEO, and president of Young, Gifted & Green, said the Chamber exhibited exclusionary, experimental, and racist practices.

“As a Memphian by choice and birthright I am deeply troubled by the decision made by the [Greater Memphis Chamber] to bring xAI to a Black community with absolutely no community engagement, particularly from the Black residents who will be directly impacted,” Adams said.

Memphis City Council Member Yolanda Cooper-Sutton, representative of District 3, called the company “monstrous” and said it was disappointing to find this out through the media. She said taxpayers deserve to have a seat at the table like the elite of the city.

“We as a people here in Memphis — a predominantly Black city, the poorest of the poorest — have not been allowed to be engaged in this impact that is going to impact our lives, the future of our children, the future of our children’s children, and the future of our children’s children’s children,” Cooper-Sutton said.

Paul Klein, co-chair of the Memphis chapter of the Climate Reality Project, further outlined how minority communities and those living in South Memphis are disproportionately affected by climate change. He said South Memphis has four times the cancer rate compared to the rest of the city and there were 17 toxic release facilities prior to xAI’s announcement.

“We feel that it is imperative to require that xAI put their promises in writing, such as their commitments to enlarge our wastewater treatment plants and then to use only treated wastewater for cooling,” Klein said. “It needs to be in a legally enforceable community benefit agreement.”

KeShaun Pearson, president of MCAP, said the best case scenario is that the Greater Memphis Chamber uses their influence to change how xAI operates in the community and to include the community to influence more sustainable operation. He added they aren’t against economic development but are proponents of ethical operation.

Pearson said they are used to the city making large-scale decisions without consulting with residents. He said he looks at this as an opportunity for the Chamber to “do something different.”

“Unfortunately, this is business as usual,” Pearson said. “We can no longer do business as usual in the city of Memphis, Tennessee. This way of moving does not move us forward. It continuously connects us to fossil fuels. It continuously oppresses the family and communities that need the most support and help.”

Advocates said they will continue to call out organizations that aided in bringing the project to Memphis without the community’s input.