GAO Finds Trump Administration Violated Spending Law, Withholding Over $1.5 Billion From EPA and HHS

In two decisions issued Oct. 7, 2026, the Government Accountability Office concluded the Trump administration violated the Impoundment Control Act of 1974 by withholding appropriated funds without notifying Congress. At the EPA, GAO found the termination of nearly all Community Change Grants, the largest subprogram of the Environmental and Climate Justice Block Grants Program, impounded more than $1.4 billion by first pausing payments, then cancelling the grants outright. At HHS, GAO found the Agency for Healthcare Research and Quality left more than $78 million of its fiscal 2025 appropriation unspent after terminating over 150 grants across 32 states, citing new funding priorities.

The Impoundment Control Act was passed after Watergate to stop unilateral blocking of money Congress has appropriated. These findings add to a string of impoundment conclusions against the administration, including a September finding on roughly $800 million in "pocket rescissions," none enforced; GAO currently has no confirmed leader.

GAO has authority to sue the executive branch over impoundments but has never done so. The Office of Management and Budget did not respond to requests for comment. Sen. Patty Murray said HHS has not explained how it spent AHRQ's remaining funds.