GSA Faces Oversight Concerns on Billions in Climate Funding from Inflation Reduction Act

The General Services Administration (GSA) has allocated nearly all of its $3.375 billion in Inflation Reduction Act (IRA) funding to climate-focused building projects but has come under scrutiny for lacking clear planning and transparency in some key areas. A new report from the Government Accountability Office (GAO) highlights how the agency has yet to fully establish frameworks or publish measurable goals for a portion of this funding, raising concerns about whether it can ensure effective use of the funds intended to reduce the federal government’s environmental footprint.

As of January 31, 2025, GSA had obligated 49 percent of its IRA funds and expended just 5 percent. The majority of the funding was directed toward low-embodied carbon materials ($2.15 billion), emerging sustainable technologies ($975 million), and high-performance green buildings ($250 million). While project selection frameworks were created for the first two categories, the agency had not yet developed a formal framework for high-performance green buildings, citing the longer 2031 deadline for spending in that category. GAO recommended creating a clear selection process to improve capital investment decisions for this area.

GSA established 11 performance goals for its IRA-funded projects, each with quantitative targets to be met by the end of the program. However, the agency did not define interim benchmarks, making it difficult to assess progress in the short term. Furthermore, GAO found that GSA had not consolidated or publicly released these goals in a single source. Without full transparency, both Congress and the public have limited visibility into the results of this multibillion-dollar investment.

GAO’s report stems from a broader review of GSA’s efforts to reduce emissions and improve sustainability across more than 1,500 federally owned buildings, which are among the federal government’s largest sources of energy consumption and emissions. The audit involved analyzing GSA’s spending plans, risk management strategies, and on-site visits to three federally funded projects. GAO concluded that while GSA followed best practices in several areas, more action is needed to enhance oversight, planning, and public accountability.

To address these gaps, GAO issued three open recommendations: that GSA develop a project selection framework for high-performance green buildings, add interim performance targets, and publicly communicate all performance goals and progress updates in one accessible location. GSA agreed with the recommendations and indicated it intends to act on them.

Article by multiple RFHC contributors, based upon information from the U.S. Government Accountability Office press release GAO-25-107349

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