EPA OIG Audit Raises Alarms Over $38 Billion in Grants Issued With Little Oversight
The Environmental Protection Agency (EPA) Office of Inspector General (OIG) has released the results of a major audit examining EPA grants distributed during the Biden Administration, revealing significant concerns about oversight and accountability. According to the audit, more than $38 billion in grants were awarded with limited monitoring, making it difficult—if not impossible—to verify whether recipients followed federal rules and grant requirements.
According to the EPA, the funds were “appropriated by Congress to improve drinking water, wastewater, stormwater infrastructure, and Superfund and brownfield cleanup, but, as the OIG audit noted, the Biden Administration’s lack of oversight made it impossible to verify if ‘grant recipients are complying with federal regulations, EPA policy, and grant requirements.’” While the goals of the funding were tied to critical environmental and infrastructure improvements, the audit suggests that weak internal controls undermined confidence in how the money was managed.
EPA Administrator Lee Zeldin responded forcefully to the audit’s findings, emphasizing the need for reform and stronger accountability. He said, “This audit reveals just how deeply ingrained the culture of waste was during the previous administration. The American people put President Trump in office with a mandate to stamp out this rot. We will work throughout the agency, including with the Office of the Inspector General, to strengthen the financial controls and accountability measures that were missing under the Biden administration. The days of colossally wasteful spending and subjecting hard-earned American tax dollars to waste and abuse are over.”
The OIG report further warned that the lack of consistent monitoring significantly increased financial risk. EPA OIG auditors stated in their report that ”[b]ecause of the deficiencies we identified, these grant funds are at a greater risk of fraud, waste, and abuse since the EPA cannot ensure that grants are consistently monitored, which means that it cannot provide assurance that grant recipients are complying with federal regulations, EPA policy, and grant requirements.”
The findings have renewed debate over federal grant oversight, environmental spending, and agency accountability. Supporters of tighter controls argue that improved monitoring is essential to protect taxpayer dollars while still advancing environmental priorities. As the EPA moves forward, the audit is likely to shape new policies aimed at restoring transparency, ensuring compliance, and preventing fraud, waste, and abuse in future grant programs.
Audio Reporting by Dale Sandlin for Southeast AgNet.