The U.S. Environmental Protection Agency's (EPA) Office of Inspector General (OIG) has released an audit criticizing the Biden Administration for inadequate oversight in distributing grants, risking over $38 billion in taxpayer funds. These funds were intended for improving environmental infrastructure such as drinking water and wastewater systems. The audit highlights that the lack of oversight made it difficult to verify compliance with federal regulations and EPA policies.
Administrator Lee Zeldin, who is working with the OIG to enhance accountability measures, said, "This audit reveals just how deeply ingrained the culture of waste was during the previous administration." He emphasized that under his leadership, efforts are being made to strengthen financial controls and accountability within the agency.
The audit reviewed EPA grants from 2021 to 2024 under the Infrastructure Investment and Jobs Act (IIJA). As of September 30, 2024, there were 7,877 active grants valued at about $38.1 billion, including $22.6 billion from IIJA grants. The report detailed several deficiencies in oversight practices during this period. For instance, regional offices failed to submit eight out of 40 required annual post-award monitoring plans between 2021 and 2024.
OIG auditors noted significant gaps in documentation and maintenance of grant files, which they attributed to a lack of proper controls within the EPA's regional offices. They concluded that these deficiencies increase the risk of fraud and abuse since consistent monitoring cannot be assured.
