GAO Releases Report on Oversight Practices of Grant Programs

On January 5, 2026, GAO publicly released a report detailing their analysis of five grant programs’ oversight and fraud detection measures in response to petitions from various congressional requesters. The report found EPA fully met seven of the nine requirements and best practices to oversee and prevent fraud, waste, and abuse in awards. It found that while the Greenhouse Gas Reduction Fund (GGRF) “created a structure with a dedicated entity to lead fraud management activities,” the program lacked a Senior Management Council to assure internal control under OMB Circular A-123. They also found that EPA was discussing improvements to its governance structure “with the intentions to implement changes in the future.” Finally, they found that EPA included “some, but not all, of the monitoring components…in its draft fraud risk management guidance.” GAO recommended that EPA improves risk-based monitoring and evaluate all components of the Fraud Risk Framework. The report mentioned that due to the repeal of Section 134 of the Clean Air Act and the rescission of GGRF’s unobligated funds, EPA’s Office of the GGRF is “responsible for administering the process of closing out” the grants.