GAO reports mixed outcomes for IIJA and IRA funding reviews at USDA and DOE
DOE continued $19.6 billion in awards and cancelled $9.1 billion; USDA terminated 34 contracts worth $67 million, with review status unclear as of June 2025
The Government Accountability Office released a report detailing how the Department of Agriculture (USDA) and the Department of Energy (DOE) have handled Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) funding after a presidential directive in January 2025. DOE's advisory portfolio review process concluded in April 2026, approving 381 awards totaling $19.6 billion to proceed and cancelling 155 awards worth $9.1 billion. USDA completed its review by June 30 2025, terminating 34 contracts for a combined $67 million, but GAO found the agency's data insufficient to identify which remaining awards were continued, modified, or cancelled.
GAO noted that of the $134 billion allocated to USDA and DOE for FYs 2022-25, USDA received $37 billion that was not rescinded and obligated $32.2 billion, while DOE received $78 billion that was not rescinded and obligated $51 billion. The report also highlighted that USDA's review focused on awards using racial, ethnic, and gender preferences and on climate or environmental justice initiatives, with senior leadership making final decisions.
The GAO analysis relied on agency accounting systems, policies, and interviews with officials, concluding that DOE's data were sufficiently reliable for reporting its funding review status, whereas USDA's data had limitations. Grant recipients have expressed concern that the review pauses have delayed project implementation, a point underscored by the GAO's findings.
The report's contact is Anne Sit-Williams (sitwilliamsa@gao.gov).
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