GAO: IIJA/IRA $33.6B Pending, about $17.8B Canceled—Grant Timing Watch
July 22 GAO review finds EPA, DOT, Interior and NTIA obligated most IIJA/IRA funding—but left about $17.8B canceled and $33.6B pending.
The Government Accountability Office (GAO) released a major funding-status review on July 22, 2026, finding that four federal agencies managing key Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) programs obligated most of their available money—but disbursed far less. GAO also reports that the agencies approved about 9,500 awards totaling $128 billion, canceled about 800 awards totaling about $17.8 billion, and left more than 2,500 awards pending decisions totaling about $33.6 billion (as of various dates shown in the report).
For communities, contractors, and grant applicants, the practical takeaway is that “where an award stands” (approved, modified, canceled, or still pending) can be a real scheduling risk—especially when projects depend on downstream federal payments.
What GAO reviewed (and why January 2025 matters)
GAO-26-108434 looks at selected agencies—EPA, the Department of Transportation (DOT), the Department of the Interior (Interior), and the National Telecommunications and Information Administration (NTIA)—and how they handled IIJA and IRA funding after a January 2025 presidential direction to review projects for alignment with administration priorities, including modifying or canceling awards that didn’t fit.
GAO also notes it would report on the Department of Energy and Department of Agriculture separately.
Where money went: obligated vs. disbursed (plain English)
GAO breaks IIJA and IRA spending into two core steps:
- Obligation: a definite commitment that creates a legal liability for the federal government.
- Disbursement: a payment made by the federal agency (cash or cash equivalent) to liquidate a federal obligation.
For IIJA, GAO reports that (for fiscal years 2022 to 2025) the four selected agencies obligated about 76% of their IIJA funds (about $434.2 billion) and disbursed about 54% of obligated funds (about $235.6 billion). Overall, GAO says these agencies ultimately disbursed about 41% of IIJA budget authority for fiscal years 2022 through 2025.
For the IRA, GAO reports that (for fiscal years 2022 through 2025, as of September 30, 2025) EPA, Interior, and DOT obligated about 72% of their IRA funds (about $38.8 billion) and disbursed about 60% of obligated funds (about $23.3 billion). GAO says they ultimately disbursed about 43% of IRA budget authority for fiscal years 2022 through 2025.
What changed after the January 2025 review direction
According to GAO, as a result of these reviews the selected agencies reported:
- Approved: about 9,500 awards totaling about $128 billion.
- Canceled: about 800 awards totaling about $17.8 billion.
- Pending: more than 2,500 awards pending a decision totaling about $33.6 billion.
GAO also reports that in July 2025 Congress rescinded $6.4 billion of the three agencies’ unobligated IRA funds, based on agencies’ data.
GAO further defines “canceled” awards to include terminated, rescinded, or withdrawn awards—or awards discontinued by a recipient.
Why “pending final decision” is a real grant-timeline risk
GAO’s report treats “pending final decision” as more than a paperwork label. In the report’s definitions, GAO says the “amount pending final decision represents disbursements pending approval.” In other words: projects that are still pending may not be ready for the payment step that moves work forward.
For residents and local decision-makers watching project timelines, that distinction can translate into:
- Cashflow and sequencing delays when work depends on later federal approval steps.
- Plan revisions if an award is modified or if conditions change during review.
- Schedule uncertainty when awards are still pending decisions, even after earlier application and review steps.
What to watch next (without guessing individual outcomes)
GAO does not publish “when every pending award will be decided.” But applicants and communities can use the GAO framework to pressure-test schedules: confirm the status of each relevant award (approved, modified, canceled, or pending) and ask the administering agency what the next decision step is for that award.
Bottom line: GAO’s July 22, 2026 findings show IIJA/IRA funding moving unevenly from budget authority to obligations to disbursements—and show a large review-driven backlog of pending award decisions. When planning grant-dependent projects, treat “pending” as a meaningful delay risk, not a temporary administrative step.
Sources
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