Inspectors General of the agencies distributing Recovery Act awards were appropriated specific funds to cover expenses for the additional oversight required under the Recovery Act. After the Recovery Act was enacted, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was passed and mandated that any Recovery funds not used by December 31, 2012 had to be returned to the Treasury.
However, Dodd-Frank also stated the President could waive repayment of any unused funds should he determine that repayment would “not be in the best interest of the nation.”
Six Inspectors Generals requested waivers from repaying $11.5 million in unused Recovery Act funds.
In a notice published November 27 in the Federal Register, President Obama said that he was granting the waiver “based on the following considerations: The requesting Inspectors General are tasked with overseeing investigations that can take multiple years to complete, and the oversight work often begins in earnest during the final phases of a project.
“In some cases, the awards that the Inspectors General oversee will continue to outlay past December 31, 2012. The $11.5 million unobligated balance will allow Inspectors General the needed flexibility to effectively combat waste, fraud, and abuse. Therefore, in accordance with section 1306 of the Dodd-Frank Act, I am waiving the requirements for repayment of unobligated funds.”
The agencies of the requesting Inspectors General:
- Department of Commerce
- Department of Housing and Urban Development
- Department of Transportation
- Treasury Inspector General for Tax Administration
- National Science Foundation
- Small Business Administration
President Obama's Approval
Back to Featured Stories