State Representative Charity Grimm Krupa has requested a formal review and investigation into the administration of taxpayer funds managed by the Fay-Penn Economic Development Council. She sent her request to the Pennsylvania Department of Community and Economic Development (DCED), the Pennsylvania Auditor General, and the Pennsylvania Inspector General.
Fay-Penn is a nonprofit based in Fayette County that serves as a certified economic development organization. It acts as a local administrator for state-supported grant and loan programs, reviewing applications, recommending or approving funding, and distributing public dollars intended for job creation, business growth, and economic revitalization in the area.
“For decades, millions of taxpayer dollars have flowed into Fayette County through programs administered and directed by Fay-Penn,” Krupa said. “With that level of authority comes a heightened responsibility. The people of our community deserve absolute confidence that these funds are managed lawfully, ethically and in a way that expands opportunity across our region — not in ways that benefit a limited circle of insiders.”
Last year, Krupa asked the Pennsylvania Attorney General’s Office to look into serious allegations involving Fay-Penn. She now believes it is important for agencies with audit and oversight authority to use their statutory powers fully. According to Krupa, DCED, the auditor general, and inspector general each have specific responsibilities to protect taxpayer money, ensure compliance with grant conditions, and investigate potential misuse of public funds. She cited allegations about repeated related-party transactions and possible self-dealing within Fay-Penn as reasons for oversight bodies to act.
Public IRS Form 990 disclosures over several years show repeated loans between Fay-Penn and businesses owned by directors. These filings also report multi-million-dollar business transactions involving board members—including construction contracts—with totals reaching several million dollars in some years.
“These are not minor entries,” Grimm Krupa said. “When public filings reflect repeated related-party transactions involving leadership of an organization administering public funds, that warrants independent review.”
Krupa highlighted ongoing economic challenges in Fayette County despite significant investment.
“Families are struggling with rising property taxes. Volunteer fire companies hold fundraisers just to keep the lights on. Communities face serious needs in public safety and child welfare,” she said. “Economic development dollars are intended to expand opportunity across the community. If funds are administered in ways that even create the appearance of insider benefit, public trust is eroded.”
In her letters requesting action from state agencies, Krupa called for:
– A comprehensive audit of state-administered funds distributed through Fay-Penn.
– A review of related-party transactions and board member financial interests.
– Examination of conflict-of-interest compliance documentation.
– Determination if any laws or grant conditions were violated.
– Corrective action if needed.
“Our responsibility as stewards of taxpayer dollars is sacred,” Grimm Krupa said. “Every public dollar should reflect our commitment to fairness, integrity and the greater good. Fayette County families deserve nothing less.”
Charity Grimm Krupa represents Pennsylvania’s 51st Legislative District according to her official website. She lives on a farm with her husband and three children as noted on her biography page. Her background includes degrees from Penn State University and West Virginia College of Law according to official records, experience as an assistant Fayette County public defender and private attorney specializing in civil rights litigation, as well as service on the Gallatin School Board as detailed online.