Federal Manager's Daily Report

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In a report whose recommendations could apply to other agencies as well, the inspector general of the EPA has said that spending under congressional earmarks requires special attention.

After a decade-long suspension of the practice under Capitol Hill budget procedures, earmarks—appropriations specific to a particular product that also sometimes are termed “congressionally directed spending”—returned in 2021. The EPA received some $860 million in fiscal 2022 and some $1.5 billion in fiscal 2023, the IG noted, largely for water-related projects but also in areas including feasibility studies and research.

In a review of reports from years prior to the suspension of such appropriations, which typically are disbursed through the grants process, the IG said that common themes included the need to:

* Ensure that grant work plans adhere to agency policies and align with strategic goals. It cited reports finding that the agency had approved some work plans even though they did not sufficiently outline the work needed to achieve the project’s objectives of did not identify specific problems the grant funds would be used to address.

* Ensure that policies and procedures are in place to address the timely award and use of earmarked funds. Prior reports found delays for reasons including that funding recipients either could not provide matching funds required for the grant or the projects were complex and required extensive planning

* Ensure compliance with grant terms and conditions. Prior reports found instances such as recipients not properly accounting for funds, or not in compliance with requirements such as procuring services competitively.

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