Federal Independent Agencies
Here's a look at documents from federal independent agencies
Featured Stories
EPA and Army Wrap Up Public Listening Sessions on Proposed Definition of WOTUS
WASHINGTON, Dec. 22 -- The Environmental Protection Agency issued the following news release:
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EPA and Army Wrap Up Public Listening Sessions on Proposed Definition of WOTUS
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WASHINGTON - U.S. Environmental Protection Agency (EPA) and U.S. Department of the Army (Army) have completed a series of listening sessions to hear input from the public on the agencies' revised definition of "waters of the United States," or WOTUS. Public input is essential to the rulemaking process and these sessions provided an important opportunity for the agencies to hear directly from a variety of stakeholders.
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WASHINGTON, Dec. 22 -- The Environmental Protection Agency issued the following news release:
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EPA and Army Wrap Up Public Listening Sessions on Proposed Definition of WOTUS
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WASHINGTON - U.S. Environmental Protection Agency (EPA) and U.S. Department of the Army (Army) have completed a series of listening sessions to hear input from the public on the agencies' revised definition of "waters of the United States," or WOTUS. Public input is essential to the rulemaking process and these sessions provided an important opportunity for the agencies to hear directly from a variety of stakeholders.It is clear that a durable definition of WOTUS is a priority that will protect water quality and help advance the agency's Powering the Great American Comeback initiative.
"EPA is committed to finalizing a definition of 'waters of the United States' that fully implements the Supreme Court's decision in Sackett, accelerates economic prosperity, and protects water quality in partnership with our state co-regulators. Incorporating public feedback on our proposal is critical to achieving these goals," said EPA Assistant Administrator for Water Jess Kramer. "What we heard countless times in these listening sessions is that a durable rule is top-of-mind for our stakeholders. We look forward to delivering a final rule that will stand the test of time and protect water quality while supporting American industry, energy producers, the technology sector, farmers, ranchers, developers, businesses, and landowners."
"Under President Trump's leadership, this rule will replace regulatory confusion with the clarity and straightforward implementation needed to unleash our nation's economy. This action will also ensure that our nation's landowners, vital services and infrastructure are no longer bogged down in a swamp of federal regulations," said Adam Telle, Assistant Secretary of the Army (Civil Works). "I'm proud that Army Civil Works is poised to swiftly implement a final rule that will enable Americans to cut through red tape and thrive."
The public listening sessions kicked off on December 12 in Bismark, North Dakota. with a session hosted by U.S. Sen. Kevin Cramer. The series of listening sessions continued in Pittsburgh, Pennsylvania, on December 15 and concluded with virtual-only sessions on December 16. The agencies heard valuable on-the-ground perspectives from farmers and ranchers, builders and construction contractors, miners and energy producers, manufacturers, states, Tribes, municipal stormwater coalitions, environmental advocacy groups and the general public.
The agencies will continue to accept written comments on the proposed rule through January 5, 2026.
The definition of WOTUS guides implementation of certain Clean Water Act programs, including whether farmers, landowners and businesses must secure costly permits before they can pursue a project. Under the Biden Administration, EPA and the Army's amended 2023 definition of WOTUS was overly broad, failing to fully implement the Supreme Court's decision in Sackett v. Environmental Protection Agency. On November 17, 2025 the agencies proposed a revised definition of WOTUS that would follow the Supreme Court's clear direction in Sackett v. EPA and eliminate red tape, cut permitting costs, and lower the cost of doing business in communities across the country - all while maintaining key protections for the nation's waters.
Following the comment period, EPA and the Army will consider comments received while working to expeditiously develop a final rule that will prioritize a clear interpretation and accurate implementation of the law.
Please see additional information on Waters of the United States.
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Original text here: https://www.epa.gov/newsreleases/epa-and-army-wrap-public-listening-sessions-proposed-definition-wotus
EPA Completes Contaminated Soil Removal From 84 Residential Yards Near Former Exide Battery Facility in Logansport, Indiana
WASHINGTON, Dec. 22 -- The Environmental Protection Agency issued the following news release:
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EPA Completes Contaminated Soil Removal From 84 Residential Yards Near Former Exide Battery Facility in Logansport, Indiana
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Agency completes a two-year lead cleanup in the neighborhood surrounding the former lead-acid battery manufacturing facility
CHICAGO (December 22, 2025) - On October 8, 2025, U.S. Environmental Protection Agency (EPA) completed an extensive cleanup of lead-contaminated soil in 84 residential yards near the former Exide Battery Corp. at 303 Water St. in Logansport, Indiana.
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WASHINGTON, Dec. 22 -- The Environmental Protection Agency issued the following news release:
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EPA Completes Contaminated Soil Removal From 84 Residential Yards Near Former Exide Battery Facility in Logansport, Indiana
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Agency completes a two-year lead cleanup in the neighborhood surrounding the former lead-acid battery manufacturing facility
CHICAGO (December 22, 2025) - On October 8, 2025, U.S. Environmental Protection Agency (EPA) completed an extensive cleanup of lead-contaminated soil in 84 residential yards near the former Exide Battery Corp. at 303 Water St. in Logansport, Indiana.The Indiana Department of Environmental Management (IDEM) referred the site to EPA on August 31, 2021, after discovering high levels of lead in yards surrounding the former facility. EPA launched a series of assessments between 2021 and 2023 to determine the nature and extent of the contamination.
"Ensuring the health and safety of our communities is at the heart of EPA's mission," said EPA Region 5 Administrator Anne Vogel. "By removing harmful contaminants and restoring these residential areas, we are not only safeguarding the well-being of current residents but also contributing to a healthier future for generations to come."
"The city was glad to partner with the EPA on this significant project to improve the quality of life in these neighborhoods on our west side," said Logansport Deputy Mayor Jacob Pomasl. "This is a crucial step toward our long-term goals of a safer and healthier community for all current and future residents of Logansport."
For over two years, crews excavated soil from 84 residential properties and transported 16,664 tons of lead-contaminated soil to an EPA-approved facility for proper disposal. Workers then backfilled the excavated areas with clean soil and restored each property by replacing grass, plants, and flowers. Throughout the cleanup, EPA conducted air monitoring and implemented dust control measures to ensure worker and human health protection. EPA addressed all properties where lead was detected above cleanup levels, and determined no further action was necessary.
Exide Battery operated as a lead-acid battery manufacturing facility for the automotive industry from about 1960 to 1989 before shutting down in 2009. The former facility's building was demolished in 2016. Due to the nature of the industrial activities at the site, the Indiana Department of Environmental Management (IDEM) conducted an investigative survey of the soils surrounding the former Exide facility after its closure. IDEM found lead soil concentrations as high as 692 parts per million, well above levels required for residential cleanup.
After IDEM referred the site to EPA, the agency began collecting its own soil samples from nearby residential properties that confirmed elevated levels of lead. By the request of IDEM, and in consultation with the city of Logansport, EPA began removing lead-contaminated soil in the fall of 2023. In 2024, EPA expanded its cleanup efforts to address additional properties with elevated lead levels. EPA completed the work in the fall of 2025.
More information about the response is available at the Exide Corporation Site removal website.
-out EPA Region 5, visit our website.
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Original text here: https://www.epa.gov/newsreleases/epa-completes-contaminated-soil-removal-84-residential-yards-near-former-exide-battery
NASA's SPHEREx Observatory Completes First Cosmic Map Like No Other
PASADENA, California, Dec. 19 (TNSres) -- NASA Jet Propulsion Laboratory issued the following news:
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NASA's SPHEREx Observatory Completes First Cosmic Map Like No Other
The telescope will help scientists answer big-picture questions about everything from water deposits in the Milky Way to what happened in the first second after the big bang.
Launched in March, NASA's SPHEREx space telescope has completed its first infrared map of the entire sky in 102 colors. While not visible to the human eye, these 102 infrared wavelengths of light are prevalent in the cosmos, and observing the entire
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PASADENA, California, Dec. 19 (TNSres) -- NASA Jet Propulsion Laboratory issued the following news:
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NASA's SPHEREx Observatory Completes First Cosmic Map Like No Other
The telescope will help scientists answer big-picture questions about everything from water deposits in the Milky Way to what happened in the first second after the big bang.
Launched in March, NASA's SPHEREx space telescope has completed its first infrared map of the entire sky in 102 colors. While not visible to the human eye, these 102 infrared wavelengths of light are prevalent in the cosmos, and observing the entiresky this way enables scientists to answer big questions, including how a dramatic event that occurred in the first billionth of a trillionth of a trillionth of a second after the big bang influenced the 3D distribution of hundreds of millions of galaxies in our universe. In addition, scientists will use the data to study how galaxies have changed over the universe's nearly 14 billion-year history and learn about the distribution of key ingredients for life in our own galaxy.
"It's incredible how much information SPHEREx has collected in just six months -- information that will be especially valuable when used alongside our other missions' data to better understand our universe," said Shawn Domagal-Goldman, director of the Astrophysics Division at NASA Headquarters in Washington. "We essentially have 102 new maps of the entire sky, each one in a different wavelength and containing unique information about the objects it sees. I think every astronomer is going to find something of value here, as NASA's missions enable the world to answer fundamental questions about how the universe got its start, and how it changed to eventually create a home for us in it."
Circling Earth about 141/2 times a day, SPHEREx (which stands for Spectro-Photometer for the History of the Universe, Epoch of Reionization, and Ices Explorer) travels from north to south, passing over the poles. Each day it takes about 3,600 images along one circular strip of the sky, and as the days pass and the planet moves around the Sun, SPHEREx's field of view shifts as well. After six months, the observatory has looked out into space in every direction, capturing the entire sky in 360 degrees.
Managed by NASA's Jet Propulsion Laboratory in Southern California, the mission began mapping the sky in May and completed its first all-sky mosaic in December. It will complete three additional all-sky scans during its two-year primary mission, and merging those maps together will increase the sensitivity of the measurements. The entire dataset is freely available to scientists and the public.
"SPHEREx is a mid-sized astrophysics mission delivering big science," said JPL Director Dave Gallagher. "It's a phenomenal example of how we turn bold ideas into reality, and in doing so, unlock enormous potential for discovery."
Superpowered telescope
Each of the 102 colors detected by SPHEREx represents a wavelength of infrared light, and each wavelength provides unique information about the galaxies, stars, planet-forming regions, and other cosmic features therein. For example, dense clouds of dust in our galaxy where stars and planets form radiate brightly in certain wavelengths but emit no light (and are therefore totally invisible) in others. The process of separating the light from a source into its component wavelengths is called spectroscopy.
And while a handful of previous missions has also mapped the entire sky, such as NASA's Wide-field Infrared Survey Explorer, none have done so in nearly as many colors as SPHEREx. By contrast, NASA's James Webb Space Telescope can do spectroscopy with significantly more wavelengths of light than SPHEREx, but with a field of view thousands of times smaller. The combination of colors and such a wide field of view is why SPHEREx is so powerful.
"The superpower of SPHEREx is that it captures the whole sky in 102 colors about every six months. That's an amazing amount of information to gather in a short amount of time," said Beth Fabinsky, the SPHEREx project manager at JPL. "I think this makes us the mantis shrimp of telescopes, because we have an amazing multicolor visual detection system and we can also see a very wide swath of our surroundings."
To accomplish this feat, SPHEREx uses six detectors, each paired with a specially designed filter that contains a gradient of 17 colors. That means every image taken with those six detectors contains 102 colors (six times 17). It also means that every all-sky map that SPHEREx produces is really 102 maps, each in a different color.
The observatory will use those colors to measure the distance to hundreds of millions of galaxies. Though the positions of most of those galaxies have already been mapped in two dimensions by other observatories, SPHEREx's map will be in 3D, enabling scientists to measure subtle variations in the way galaxies are clustered and distributed across the universe.
Those measurements will offer insights into an event that took place in the first billionth of a trillionth of a trillionth of a second after the big bang. In this moment, called inflation, the universe expanded by a trillion-trillionfold. Nothing like it has occurred in the universe since, and scientists want to understand it better. The SPHEREx mission's approach is one way to help in that effort.
More about SPHEREx
The SPHEREx mission is managed by JPL for NASA's Astrophysics Division within the Science Mission Directorate in Washington. The telescope and the spacecraft bus were built by BAE Systems. The science analysis of the SPHEREx data is being conducted by a team of scientists at 10 institutions across the U.S., and in South Korea and Taiwan. Data is processed and archived at IPAC at Caltech in Pasadena, which manages JPL for NASA. The mission's principal investigator is based at Caltech with a joint JPL appointment. The SPHEREx dataset is publicly available.
For more information about the SPHEREx mission visit:
https://science.nasa.gov/mission/spherex/
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Original text here: https://www.jpl.nasa.gov/news/nasas-spherex-observatory-completes-first-cosmic-map-like-no-other/
EPA Reaches Settlement Agreement with Mass. Metal Plating Company for Hazardous Waste Violations
WASHINGTON, Dec. 19 -- The Environmental Protection Agency issued the following news release:
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EPA Reaches Settlement Agreement with Mass. Metal Plating Company for Hazardous Waste Violations
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BOSTON (December 19, 2025) - U.S. Environmental Protection Agency (EPA) announced a settlement agreement with CIL Electroplating, Inc. (CIL), a Massachusetts-based metal plating and finishing company to resolve violations of the Resource Conservation and Recovery Act (RCRA) and the Massachusetts Hazardous Waste Management regulations at CIL's metal plating facility in Lawrence, Massachusetts.
"The
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WASHINGTON, Dec. 19 -- The Environmental Protection Agency issued the following news release:
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EPA Reaches Settlement Agreement with Mass. Metal Plating Company for Hazardous Waste Violations
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BOSTON (December 19, 2025) - U.S. Environmental Protection Agency (EPA) announced a settlement agreement with CIL Electroplating, Inc. (CIL), a Massachusetts-based metal plating and finishing company to resolve violations of the Resource Conservation and Recovery Act (RCRA) and the Massachusetts Hazardous Waste Management regulations at CIL's metal plating facility in Lawrence, Massachusetts.
"TheResource Conservation and Recovery Act is in place to ensure the safe management of solid and hazardous waste," said EPA New England Regional Administrator Mark Sanborn. "The agreement with CIL Electroplating, Inc. exemplifies EPA's core mission to protect human health and the environment and ensure clean air, land and water for every American."
During an inspection of CIL's facility, EPA identified multiple RCRA violations related to hazardous waste container storage, labelling, waste determinations, personnel training, and more. Under the agreement, CIL will pay a civil penalty of $136,383. CIL has certified that it has returned to compliance with RCRA and the Massachusetts Hazardous Waste Management regulations.
Background
CIL is a metal plating and finishing company located at 125 Glenn Street in Lawrence, Massachusetts that employs an estimated 140 total workers. The facility operates as a job shop conducting cadmium, electroless nickel, tin, tin-lead, copper, silver, gold, black oxide, phosphate, zinc, manganese, iron, and other types of metal plating for a wide variety of industries. CIL has a sister company, CIL, Inc., also located in Lawrence.
Why this Matters
Hazardous waste that is improperly managed poses a serious threat to human health and the environment. The RCRA statute, enacted in 1976, set up a framework to make sure that hazardous wastes are properly classified, managed, and disposed of. EPA's regulations under RCRA protect the public and the environment from exposures to pollutants in hazardous waste.
More information is available on EPA's RCRA Laws and Regulations webpage.
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Original text here: https://www.epa.gov/newsreleases/epa-reaches-settlement-agreement-mass-metal-plating-company-hazardous-waste-violations
EPA Inspector General Report Reveals Biden Admin's Wasteful Spending Imperiled Tens of Billions of Tax Dollars
WASHINGTON, Dec. 19 -- The Environmental Protection Agency issued the following news release:
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EPA Inspector General Report Reveals Biden Admin's Wasteful Spending Imperiled Tens of Billions of Tax Dollars
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WASHINGTON - A new U.S. Environmental Protection Agency (EPA) Office of Inspector General (OIG) audit reveals how the Biden Administration recklessly sent thousands of poorly structured grants out the door with little to no oversight, needlessly putting over $38 billion in precious taxpayer funds at risk of waste, fraud, and abuse. These funds were appropriated by Congress to improve
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WASHINGTON, Dec. 19 -- The Environmental Protection Agency issued the following news release:
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EPA Inspector General Report Reveals Biden Admin's Wasteful Spending Imperiled Tens of Billions of Tax Dollars
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WASHINGTON - A new U.S. Environmental Protection Agency (EPA) Office of Inspector General (OIG) audit reveals how the Biden Administration recklessly sent thousands of poorly structured grants out the door with little to no oversight, needlessly putting over $38 billion in precious taxpayer funds at risk of waste, fraud, and abuse. These funds were appropriated by Congress to improvedrinking water, wastewater, stormwater infrastructure, and Superfund and brownfield cleanup, but, as the OIG audit noted, the Biden Administration's lack of oversight made it impossible to verify if "grant recipients are complying with federal regulations, EPA policy, and grant requirements." Under Administrator Lee Zeldin's leadership, EPA is working closely with OIG to implement the necessary accountability measures that were absent over the past four years.
This is just the latest example of the Biden EPA's egregiously wasteful spending habits. Upon taking office, Administrator Zeldin moved quickly to terminate the Biden Administration's "gold bars" scheme to frantically rush billions of dollars out the door at the end of 2024. The $27 billion in Greenhouse Gas Reduction Fund money was riddled with self-dealing, conflicts of interest, unqualified recipients, and intentionally reduced government oversight. This included the shockingly wasteful and poorly designed Solar for All program, which directed $7 billion through layer after layer of pass-through entities before the ultimate recipient received their diluted grant. Additionally, Administrator Zeldin canceled billions of dollars more in spending on DEI and "environmental justice" initiatives.
"This audit reveals just how deeply ingrained the culture of waste was during the previous administration. The American people put President Trump in office with a mandate to stamp out this rot. We will work throughout the agency, including with the Office of the Inspector General, to strengthen the financial controls and accountability measures that were missing under the Biden administration. The days of colossally wasteful spending and subjecting hard-earned American tax dollars to waste and abuse are over," said Administrator Lee Zeldin.
OIG audited EPA grants awarded from calendar year 2021 through 2024 under the Infrastructure Investment and Jobs Act (IIJA), which were appropriated by Congress to improve the nation's environmental infrastructure, like building new municipal wastewater or drinking water treatment facilities. As of September 30, 2024, EPA regional offices had a total of 7,877 active grants with a total value of about $38.1 billion, with 1,669 grants valued at $22.6 billion being IIJA grants.
In their report, EPA OIG auditors detailed the previous administration's stunning lack of oversight, including:
* "[R]egional offices did not submit eight of their 40 annual post-award monitoring plans that are required by EPA policy for calendar years 2021 through 2024."
* "[P]ost-award monitoring plans that were submitted did not always include all the required elements."
* "Of the 80 baseline monitoring reports we selected for review, 35 did not provide sufficient documentation of post-award status or progress. We were unable to review 18 since they were not completed."
* "[O]f the 40 grant files we reviewed, 39 were not maintained in accordance with regional policy."
* "These deficiencies occurred because the EPA did not have controls in place to ensure that its regional offices sufficiently completed the baseline monitoring reports, that supervisors reviewed those reports, or that regional offices' grant files were properly maintained."
OIG auditors concluded that "[b]ecause of the deficiencies we identified, these grant funds are at a greater risk of fraud, waste, and abuse since the EPA cannot ensure that grants are consistently monitored, which means that it cannot provide assurance that grant recipients are complying with federal regulations, EPA policy, and grant requirements."
Read the EPA OIG audit here.
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Original text here: https://www.epa.gov/newsreleases/epa-inspector-general-report-reveals-biden-admins-wasteful-spending-imperiled-tens
EPA Amends Asbestos Cleanup Plan for Former Johns-Manville Superfund Site in Illinois Beach Nature Preserve in Waukegan
WASHINGTON, Dec. 19 -- The Environmental Protection Agency issued the following news release:
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EPA Amends Asbestos Cleanup Plan for Former Johns-Manville Superfund Site in Illinois Beach Nature Preserve in Waukegan
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CHICAGO (December 19, 2025) - U.S. Environmental Protection Agency (EPA) updated its asbestos cleanup plan for a portion of the Johns-Manville Superfund site located within the Illinois Beach Nature Preserve in Waukegan, Illinois. The amended plan will now require asbestos to be removed using hand tools instead of other common methods that could destroy the existing ecosystem.
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WASHINGTON, Dec. 19 -- The Environmental Protection Agency issued the following news release:
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EPA Amends Asbestos Cleanup Plan for Former Johns-Manville Superfund Site in Illinois Beach Nature Preserve in Waukegan
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CHICAGO (December 19, 2025) - U.S. Environmental Protection Agency (EPA) updated its asbestos cleanup plan for a portion of the Johns-Manville Superfund site located within the Illinois Beach Nature Preserve in Waukegan, Illinois. The amended plan will now require asbestos to be removed using hand tools instead of other common methods that could destroy the existing ecosystem.
The original plan called for certain contaminated areas in the Superfund site to be covered in two feet of compacted clean soil. However, a one-acre portion of the siteofficially known as operable unit 6is located inside a dedicated nature preserve and required additional legal and technical considerations.
After a thorough review, EPA determined the proposed soil cap in the original plan would destroy existing vegetation by burying plants and permanently altering the landscape. Excavation, another common asbestos removal method, would also damage the extensive root structures which allow perennial plants to survive in the nature preserve's unique dune and swale ecosystem.
The amended plan will instead use licensed asbestos workers to periodically inspect the area and remove asbestos-containing material using hand tools. EPA will schedule inspection and cleanup activities according to controlled burns and wildfires. EPA will evaluate the effectiveness and necessity of cleanup activities as part of the five-year review process. The amended plan also updates the timing and extent of air monitoring and restricts access to the site.
The amended plan was developed with public input and has the concurrence of the Illinois Environmental Protection Agency.
More information about the Johns-Manville Superfund site and the amended plan is available at EPA's Johns-Manville website.
Background
EPA added operable unit 6 to the Superfund site after the original Johns-Manville cleanup plan was published in 1987. This portion is the last section of the site with cleanup actions remaining.
The Johns-Manville facility manufactured building supplies from 1928 through 1998, using asbestos until 1985. The company's 350-acre plant, which housed waste treatment and disposal areas, was demolished in 2001. In 1983, EPA added the site to Superfund's National Priority List due to extensive asbestos, chromium, lead, thiram, and xylene contamination. After years of cleanup, EPA testing determined that additional asbestos cleanup is necessary to protect human health and the environment.
Follow EPA Region 5 on Instagram, Exit EPA's website X Exit EPA's website and visit our Facebook Exit EPA's website page. For more information about EPA Region 5, visit our website.
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Original text here: https://www.epa.gov/newsreleases/epa-amends-asbestos-cleanup-plan-former-johns-manville-superfund-site-illinois-beach
$8.39 Million Settlement With College Relating To Improper Receipt Of Paycheck Protection Program Loan
WASHINGTON, Dec. 19 -- The Small Business Administration posted the following news release:
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$8.39 Million Settlement With College Relating To Improper Receipt Of Paycheck Protection Program Loan
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Click Here to Sign Up for SBA OIG Email Updates on Recent Investigative Cases, Audit Oversight Reports, and General News Link is external
Click Here to View the Original U.S. Department of Justice (DOJ) Press Release Link is external
Marymount Manhattan College Admits That It Was Ineligible to Receive Paycheck Protection Program Loan
United States Attorney for the Southern District of
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WASHINGTON, Dec. 19 -- The Small Business Administration posted the following news release:
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$8.39 Million Settlement With College Relating To Improper Receipt Of Paycheck Protection Program Loan
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Click Here to Sign Up for SBA OIG Email Updates on Recent Investigative Cases, Audit Oversight Reports, and General News Link is external
Click Here to View the Original U.S. Department of Justice (DOJ) Press Release Link is external
Marymount Manhattan College Admits That It Was Ineligible to Receive Paycheck Protection Program Loan
United States Attorney for the Southern District ofNew York, Jay Clayton, and Special Agent in Charge of the Eastern Regional Office of the U.S. Small Business Administration, Office of Inspector General ("SBA-OIG"), Amaleka McCall-Brathwaite, announced today that MARYMOUNT MANHATTAN COLLEGE ("MMC") has agreed to pay $8,392,758.43 to resolve allegations that it violated the False Claims Act by falsely certifying that it was eligible for a Paycheck Protection Program ("PPP") loan. Under the settlement approved by U.S. District Judge J. Paul Oetken, MMC has admitted and accepted responsibility for conduct alleged in the Government's Complaint, including that it was ineligible to receive the PPP loan due to the total number of individuals it employed.
The PPP, administered by the SBA, was created to assist small businesses nationwide adversely impacted by the COVID-19 pandemic. Nonprofit 501(c)(3) organizations such as MMC were deemed eligible for PPP loans if they met certain requirements. For example, when MMC applied in May 2020, 501(c)(3) organizations (like for-profit businesses) were generally required to have 500 or fewer employees. MMC exceeded this size eligibility requirement. The American Rescue Plan Act, enacted in March 2021, modified the size eligibility standard for 501(c)(3) nonprofit organizations to require that they have no more than 500 employees per physical location.
"The Paycheck Protection Program was established to ease financial and economic strain caused by the pandemic by providing businesses with forgivable loans," said U.S. Attorney Jay Clayton. "But too many applicants applied for and received taxpayer money that they had no right to receive. Our Office remains dedicated to holding those who improperly claim public funds accountable."
"Entities that misrepresented their eligibility to obtain funds from SBA programs intended to support small businesses impacted by the COVID-19 pandemic undermined the integrity of these critical relief efforts," said SBA-OIG Special Agent in Charge Amaleka McCall-Brathwaite. "The SBA Office of Inspector General remains committed to identifying and addressing fraud within SBA programs and will continue to work closely with our law enforcement partners to hold accountable those who exploit these programs."
As alleged in the Complaint filed in Manhattan federal court:
On or about May 7, 2020, MMC submitted, through its authorized representative, an application for a PPP loan to a financial institution. MMC was approved for and received a PPP loan in the amount of $6,555,592.00. In June 2021, MMC, through its authorized representative, applied for forgiveness of most of the PPP loan, and $6,197,696.64 of the PPP loan amount was ultimately forgiven.
MMC indicated on its PPP loan application that it had an average of 482 full-time equivalent employees each month. MMC also certified, among other things, that it was eligible to receive the loan.
MMC submitted an appendix with its loan application that included audited financial statements (balance sheets, statements of activities, statements of cash flows, and notes to financial statements), tax returns and related schedules, and payroll records. Within this lengthy appendix, there was a table reflecting that MMC's full-time and part-time employees exceeded 500 for each month during 2019. The appendix did not list the location at which the employees worked.
MMC actually employed well over 500 full-time and part-time employees at the time it submitted its loan application. Further, it had more than 800 full-time and part-time employees for each month in 2019, including those months within the period relevant for determining PPP eligibility.
Under applicable law and regulations, full-time and part-time employees were counted equally for purposes of determining PPP loan eligibility. The 482-employee total listed on the PPP loan application improperly counted MMC's part-time employees as one-third of an employee.
When it applied for PPP loan forgiveness in June 2021, MMC misrepresented in its application that it had only 447 employees at the time of its PPP loan application.
MMC violated the False Claims Act by knowingly presenting and making, or causing to be presented and made, false claims and statements in connection with its submission of its PPP loan application and forgiveness application. Specifically, MMC falsely certified its eligibility for the PPP loan because MMC employed more than 500 employees (in total and at a single location) and was thus ineligible for the loan it received.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
Mr. Clayton praised the SBA's Office of General Counsel for its assistance with this case.
The case is being handled by the Office's Civil Frauds Unit. Assistant U.S. Attorney Mark Osmond is in charge of the case.
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Original text here: https://www.sba.gov/article/2025/12/19/839-million-settlement-college-relating-improper-receipt-paycheck-protection-program-loan
