EPA oversees $10.2 billion of IRA grant funds amid staff cuts
The agency's $10.2 billion obligated under the Inflation Reduction Act is subject to expanded oversight for state grant recipients beginning FY 2023.
GAO reports that the Environmental Protection Agency has obligated about $10.2 billion of the Inflation Reduction Act appropriations that remain after the One Big Beautiful Bill Act rescinded roughly $1.2 billion of unspent authority. As of March 2026, EPA has expended $686 million of those obligated funds.
The majority of the obligations are for competitive grants, with state governments receiving the largest number. EPA obligated roughly $8.6 billion from fiscal years 2023 through 2026 for projects such as replacing heavy-duty vehicles with battery-electric or hydrogen fuel-cell models, deploying emissions-free equipment at ports, and improving energy efficiency in commercial and public buildings.
EPA applied its standard competition policy, issuing notices of program goals, eligibility criteria, and evaluation standards, and used points-based scoring to rank applicants. Grant recipients must submit periodic performance reports, and the agency plans an additional in-depth assessment for each IRA grant at least once during its performance period.
Since January 2025 the agency has lost hundreds of staff through early retirements and is evaluating its staffing needs for grant oversight. EPA officials indicate that contractor support is being used to fill identified gaps.
Public Law 119-21, known as the One Big Beautiful Bill Act, rescinded the budget authority for about $1.2 billion that EPA had not yet obligated, leaving the $10.2 billion in obligations and the associated oversight responsibilities unchanged.