GAO Warns DOE Oversight Changes Could Affect $65.5B in Projects

A new Government Accountability Office report warns that Department of Energy changes intended to speed construction and acquisition projects could make it harder to detect cost, schedule and performance problems early.

The review covers a federal portfolio estimated at up to $65.5 billion. As of January 2026, DOE and the National Nuclear Security Administration were managing 80 capital-asset projects at 16 contractor-operated laboratories and nuclear-enterprise sites. GAO said the changes could affect 66 ongoing and future projects.

What DOE changed

On March 27, 2025, Energy Secretary Chris Wright directed changes to DOE Order 413.3B, the department’s framework for managing major capital projects. The memorandum raised delegated approval authority for qualifying projects at contractor-operated national laboratories from $50 million to $300 million.

It also said projects costing between $300 million and $1 billion could receive independent DOE reviews at selected critical-decision points rather than throughout the full process, provided they show sustained successful performance. Projects above $1 billion would continue under the full scope of Order 413.3B requirements.

DOE described the changes as a way to reduce administrative burdens, accelerate construction and modernization, and save money for taxpayers. The policy is aimed at work supporting national laboratories, energy research, nuclear security and related federal missions.

What GAO found

GAO did not find that the changes had already caused cost overruns, delays or project failures. Instead, the watchdog said the reforms were too recent to demonstrate an effect.

As of March 2026, officials said the formal revision of Order 413.3B was on hold. However, some DOE offices and NNSA had begun implementing parts of the March 2025 direction. DOE’s Office of Science had delegated critical-decision approval authority to national laboratory directors for 20 projects at nine laboratories. Those directors are employees of the management and operating contractors that run the laboratories. NNSA was developing guidance on changes to its independent-review process.

GAO’s concern is that eliminating certain independent reviews could reduce confidence in the reliability of cost and schedule estimates and result in the late identification of potential problems. Independent reviews provide outside scrutiny at important points in a project’s development, before major commitments are made or problems become more expensive to correct.

GAO cited a 2026 peer review that helped support planning to address expected cost increases on an NNSA project in New Mexico. The example does not show that the streamlined approach caused a failure. It illustrates why outside review can matter while a project is still being planned or managed within its approved process.

What happens next

DOE and NNSA agreed with GAO’s recommendations to establish specific goals, expected outcomes and performance measures for the reforms. Both recommendations remain open.

The next accountability test will be whether the agencies publish meaningful evidence about project speed, cost savings, estimate reliability and performance. Readers should watch for updated DOE or NNSA guidance, any changes to Order 413.3B and project-level data showing whether the streamlined approach produces the promised efficiencies without weakening oversight.

GAO reissued the report on July 17, 2026, to correct state labels on a map. The correction identified Pacific Northwest National Laboratory as being in Washington, Princeton Plasma Physics Laboratory in New Jersey and Pantex Plant in Texas. It did not alter the report’s central findings.

Sources

• Government Accountability Office report GAO-26-108520
• Department of Energy streamlining memorandum announcement