GAO Faulted USDA Spending Review Transparency
The USDA failed to provide verifiable data on program spending, complicating oversight for contractors and vendors.
Updated on Sept. 29, 2026 in Economic Policy
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A June 30, 2025, GAO report revealed that the USDA provided unreliable information regarding the status of spending reviews conducted on federal awards. The examination evaluated department spending from fiscal years 2022 through 2025 following a federal directive to align expenditures with administration policy.
Why it matters
Inconsistent reporting standards from federal agencies create significant compliance risks and financial uncertainty for businesses managing government contracts. When documentation lacks clarity, contractors face challenges in predicting the continuity or modification of their existing awards.
The GAO examined a total of $164 billion in federal budget authority, including $37 billion within the USDA. While the USDA reported terminating 34 contracts worth $67 million, it failed to categorize the status of its remaining $32.2 billion in obligated funds.
The players
GAO
The Government Accountability Office serves as the independent, nonpartisan watchdog for Congress that monitors federal spending and agency compliance.
USDA
The United States Department of Agriculture is the federal executive department responsible for developing and executing laws related to farming, forestry, and food.
Donald Trump
The President of the United States who issued the directive to review agency spending alignment with administration policy.
Department of Energy
The federal agency responsible for energy policy, nuclear safety, and energy research that successfully accounted for its spending review outcomes.
The details
The GAO assessment required agencies to track the specific outcomes of awards reviewed under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. While the Department of Energy successfully provided detailed records—including the termination of 155 awards totaling $9.1 billion—the USDA failed to verify the current status of its program funding. This lack of transparency prevents stakeholders from determining which contracts are active versus those subject to administrative modification.
Timeline
January 20, 2025: President Trump ordered federal agencies to initiate spending reviews.
Fiscal years 2022-2025: Agencies obligated funds subject to the GAO review.
June 30, 2025: USDA officials completed their review of program spending.
Market Landscape
The GAO findings highlight significant variability in how federal agencies implement spending reviews mandated under the Inflation Reduction Act. This disparity in administrative data quality creates uneven competitive conditions for government contractors operating across different cabinet-level departments.
Contractors and vendors working with the USDA should prepare for increased audit scrutiny and potential delays in payment or contract status updates. Businesses should confirm their current award documentation matches internal records to prepare for potential requests for information or administrative review.
The takeaway
Reliable documentation is the first line of defense against the administrative uncertainty caused by federal spending reviews. Contractors should conduct an internal audit of all active federal award statuses to ensure consistency with agency documentation, particularly for contracts tied to the Inflation Reduction Act.
Further reading
For broader trends on how regulatory oversight affects federal procurement, see Economic Policy.
Source note: This article includes information reported by PJ Media.
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