The Department of Energy has announced sweeping new measures to strengthen financial accountability and scrutinize $15 billion in awards as Republicans in Congress ramp up oversight of Biden-era green energy spending.
At a Glance
- DOE is reviewing 179 financial assistance awards totaling over $15 billion, with particular focus on those issued in the final days of the Biden administration
- The new policy requires award recipients to provide comprehensive reporting or face potential funding termination
- Congressional Republicans have intensified scrutiny of DOE spending following reports of waste and mismanagement
- Secretary Chris Wright’s reforms aim to protect taxpayer dollars and ensure projects align with national security interests
Increased Oversight of Billions in Government Spending
The Department of Energy has implemented new policies to increase accountability and oversight of financial assistance awards, particularly targeting $15 billion allocated during the Biden administration. Secretary of Energy Chris Wright issued a Secretarial Memorandum titled “Ensuring Responsibility for Financial Assistance,” which establishes a framework for thorough review of existing awards to ensure they meet financial, national security, and administrative standards. This comes as Congressional Republicans have intensified scrutiny of the department’s spending practices, particularly funds distributed through the Infrastructure Investment and Jobs Act and Inflation Reduction Act.
“Over the past 110 days, the Energy Department has been hard at work reviewing the billions of dollars that were rushed out the door, particularly in the final days of the Biden administration, and what we have found is concerning,” said Secretary Wright.
The policy creates a mechanism to evaluate whether projects funded through DOE grants and loans are financially sound, aligned with America’s security interests, and compliant with federal law. Recipients who fail to provide timely and complete responses to information requests may face severe consequences, including termination of funding. The department has stated that projects meeting established standards will proceed, while those failing to meet requirements may be modified or terminated.
Congressional Scrutiny and Oversight
Congressional committees have signaled increased attention to DOE and EPA grant and loan programs. The House Energy and Commerce Committee’s Oversight Plan for the 119th Congress explicitly states it “will continue to review management and implementation of clean energy and advanced technology grant and loan programs authorized under the Energy Policy Act of 2005, the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA),” according to documents. This oversight comes after the allocation of approximately $200 billion to these agencies for renewable energy and environmental justice programs.
Rep. Palmer has indicated the goal is “to evaluate whether the appropriate due diligence was done to ensure taxpayer dollars went to eligible parties and the funds are being used appropriately,” as reported by the National Law Review. The concerns about potential misuse of funds are elevated by testimony from oversight bodies that “These risks increased under past infusions of funding as agencies rushed to move large amounts of funding in a short amount of time.”
— U.S. Department of Energy (@ENERGY) May 15, 2025
Recent Controversies Fueling Reform
The push for greater financial accountability follows several controversies involving DOE spending. A recent DOE Office of Inspector General report on Secretary Jennifer Granholm’s 2023 EV road trip highlighted wasteful spending, finding that 86% of travel vouchers exceeded government per diem rates. The report concluded that travelers could have chosen more cost-effective accommodations and noted that government-issued travel cards, required by law, were not properly utilized.
“Today’s OIG report is further evidence of the Biden Administration failing to protect taxpayer dollars and leaving funds exposed to serious waste, fraud, and abuse. After Democrats rushed trillions of dollars in government spending without guardrails, the Department of Energy and Secretary Granholm embarked on a taxpayer-funded EV summer road trip to showcase its radical Green New Deal priorities. This publicity stunt not only illustrates how out of touch the Biden Administration is with the consequences of its policies, but came at the expense of American taxpayers,” said House Oversight and Government Reform Committee Chairman James Comer.
Additional Cost-Saving Measures
Beyond the review of financial assistance awards, the DOE has announced a separate policy to reduce inefficient spending in academic research funding. The department has overhauled its policy for college and university research, implementing a standardized 15% cap on indirect costs, which is projected to save taxpayers $405 million annually. Previously, these costs averaged over 30% of research grants at many institutions, meaning nearly a third of taxpayer funding was directed toward administrative overhead rather than actual scientific research.
“The purpose of Department of Energy funding to colleges and universities is to support scientific research – not foot the bill for administrative costs and facility upgrades,” U.S. Secretary of Energy Chris Wright said.
With these combined reforms, the Department of Energy is signaling a stronger commitment to fiscal responsibility while maintaining support for critical research and development initiatives. Secretary Wright emphasized the importance of proper evaluation before funding is distributed: “With this process, the Department will ensure we are doing our due diligence, utilizing taxpayer dollars to generate the largest possible benefit to the American people and safeguarding our national security. Any reputable business would have a process in place for evaluating spending and investments before money goes out the door, and the American people deserve no less from their federal government.”
