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State Department: Standards for Overseas Housing Need Review
WASHINGTON, Aug. 10 (TNSLrpt) -- The Government Accountability Office issued the following report:
* * *
State Department: Standards for Overseas Housing Need Review
*
#Fast Facts
The State Department's Bureau of Overseas Building Operations manages housing for over 9,000 Foreign Service employees living overseas. The department's goal is to provide housing comparable to what an employee would occupy in the Washington, D.C., metropolitan area.
However, we found that State has not updated its maximum housing space standards for overseas personnel in 35 years. Consequently, it may be paying ... Show Full Article WASHINGTON, Aug. 10 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * State Department: Standards for Overseas Housing Need Review * #Fast Facts The State Department's Bureau of Overseas Building Operations manages housing for over 9,000 Foreign Service employees living overseas. The department's goal is to provide housing comparable to what an employee would occupy in the Washington, D.C., metropolitan area. However, we found that State has not updated its maximum housing space standards for overseas personnel in 35 years. Consequently, it may be payingfor larger residential units than necessary to provide adequate housing for these employees.
We recommended that State address these and other issues.
A House for a Foreign Service Employee Living in Abidjan, Cote d'Ivoire
A house and palm trees with a blue sky in the background.
#Highlights
#What GAO Found
The Department of State last updated its standards for overseas housing space in 1991, according to State officials. Those standards may no longer align with State's goal of providing Foreign Service personnel living abroad with housing comparable to the Washington, D.C., metropolitan area. In the last 35 years, housing in the Washington, D.C., area has been increasing in cost and decreasing in square footage. In addition, State's method for measuring overseas housing does not align with the domestic industry standards typically followed by housing appraisers in the U.S., which may prevent State from comparing its overseas housing to housing in the Washington D.C. area. Without reviewing and updating, as applicable, its overseas housing policy, State may be paying for larger residential units than necessary for its Foreign Service personnel.
State's posts largely adhered to overseas housing cost and space standards, with 87 percent and 81 percent of units meeting those standards, respectively. Posts must request waivers to exceed these standards. Rental cost waivers resulted in overages of under 2 percent of annual lease costs in 2025, representing $8.8 million of the total $497 million in lease costs. GAO found the use of cost and space waivers varied by rank, family size, and locality. For example, executive officers and smaller families most frequently used cost and space waivers. Additionally, posts designated with more difficult living conditions used space waivers more frequently and exceeded standards by the largest margin.
Examples of Residences Provided to Foreign Service Personnel Living Overseas
State officials from the three posts that GAO selected for illustrative purposes, in Cote d'Ivoire, France, and Thailand, identified various challenges that limited their ability to provide and manage overseas housing for Foreign Service personnel. The challenges included resource constraints, limited suitable housing, and disparate systems tracking housing data. State's Staff Housing Opportunity Purchase program aims to address some of these challenges by enabling eligible posts to acquire residential properties using proceeds from the global sales of excess properties. This initiative supports the provision of high-quality housing while generating long-term savings for the U.S. government through reduced lease costs, according to State officials.
#Why GAO Did This Study
Around the world, State employees play critical roles in achieving U.S. foreign policy. State seeks to provide Foreign Service personnel serving abroad with safe and secure housing at a cost most advantageous to the U.S. government.
GAO was asked to review the housing benefit for Foreign Service personnel serving abroad. This report examines (1) the extent to which State updates its overseas housing standards to ensure they align with its goal of providing adequate housing, (2) the extent to which State adheres to its overseas housing standards at posts, and (3) the challenges State faces in adhering to its overseas housing standards at selected posts.
GAO reviewed relevant laws, policies, and guidance documents, and collected State data on overseas housing for fiscal year 2025 to analyze housing availability, size, costs, and waivers. GAO analyzed changes to housing affordability and Foreign Service personnel salaries in the Washington, D.C., area from 1993 to 2023-the latest available data. GAO also interviewed State officials at headquarters and at three overseas posts. GAO selected these posts to illustrate conditions for different regions, a range of embassy sizes, a mix of both owned and leased properties, and a mix of space and cost waivers.
#Recommendations
GAO recommends that the Secretary of State review and update, as applicable, State's (1) maximum housing space standards for overseas Foreign Service personnel to ensure they reflect the current economic conditions in the Washington, D.C., area and (2) method for measuring overseas housing space to align with domestic industry standards. State concurred with both recommendations.
#Recommendations for Executive Action
Agency Affected Recommendation Status
Department of State The Secretary of State should ensure that the Director of the Bureau of Overseas Buildings Operations reviews and updates, as applicable, State's maximum housing space standards for overseas Foreign Service personnel to ensure the standards are comparable to the current economic conditions in the Washington, D.C., area. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of State The Secretary of State should ensure that the Director of the bureau of Overseas Buildings Operations reviews and updates, as applicable, State's method for measuring housing space overseas to align with domestic industry standards for measuring housing space in the Washington, D.C., area. (Recommendation 2)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
***
Original text here: https://www.gao.gov/products/gao-26-107965
* * *
State Department: Standards for Overseas Housing Need Review
*
#Fast Facts
The State Department's Bureau of Overseas Building Operations manages housing for over 9,000 Foreign Service employees living overseas. The department's goal is to provide housing comparable to what an employee would occupy in the Washington, D.C., metropolitan area.
However, we found that State has not updated its maximum housing space standards for overseas personnel in 35 years. Consequently, it may be paying ... Show Full Article WASHINGTON, Aug. 10 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * State Department: Standards for Overseas Housing Need Review * #Fast Facts The State Department's Bureau of Overseas Building Operations manages housing for over 9,000 Foreign Service employees living overseas. The department's goal is to provide housing comparable to what an employee would occupy in the Washington, D.C., metropolitan area. However, we found that State has not updated its maximum housing space standards for overseas personnel in 35 years. Consequently, it may be payingfor larger residential units than necessary to provide adequate housing for these employees.
We recommended that State address these and other issues.
A House for a Foreign Service Employee Living in Abidjan, Cote d'Ivoire
A house and palm trees with a blue sky in the background.
#Highlights
#What GAO Found
The Department of State last updated its standards for overseas housing space in 1991, according to State officials. Those standards may no longer align with State's goal of providing Foreign Service personnel living abroad with housing comparable to the Washington, D.C., metropolitan area. In the last 35 years, housing in the Washington, D.C., area has been increasing in cost and decreasing in square footage. In addition, State's method for measuring overseas housing does not align with the domestic industry standards typically followed by housing appraisers in the U.S., which may prevent State from comparing its overseas housing to housing in the Washington D.C. area. Without reviewing and updating, as applicable, its overseas housing policy, State may be paying for larger residential units than necessary for its Foreign Service personnel.
State's posts largely adhered to overseas housing cost and space standards, with 87 percent and 81 percent of units meeting those standards, respectively. Posts must request waivers to exceed these standards. Rental cost waivers resulted in overages of under 2 percent of annual lease costs in 2025, representing $8.8 million of the total $497 million in lease costs. GAO found the use of cost and space waivers varied by rank, family size, and locality. For example, executive officers and smaller families most frequently used cost and space waivers. Additionally, posts designated with more difficult living conditions used space waivers more frequently and exceeded standards by the largest margin.
Examples of Residences Provided to Foreign Service Personnel Living Overseas
State officials from the three posts that GAO selected for illustrative purposes, in Cote d'Ivoire, France, and Thailand, identified various challenges that limited their ability to provide and manage overseas housing for Foreign Service personnel. The challenges included resource constraints, limited suitable housing, and disparate systems tracking housing data. State's Staff Housing Opportunity Purchase program aims to address some of these challenges by enabling eligible posts to acquire residential properties using proceeds from the global sales of excess properties. This initiative supports the provision of high-quality housing while generating long-term savings for the U.S. government through reduced lease costs, according to State officials.
#Why GAO Did This Study
Around the world, State employees play critical roles in achieving U.S. foreign policy. State seeks to provide Foreign Service personnel serving abroad with safe and secure housing at a cost most advantageous to the U.S. government.
GAO was asked to review the housing benefit for Foreign Service personnel serving abroad. This report examines (1) the extent to which State updates its overseas housing standards to ensure they align with its goal of providing adequate housing, (2) the extent to which State adheres to its overseas housing standards at posts, and (3) the challenges State faces in adhering to its overseas housing standards at selected posts.
GAO reviewed relevant laws, policies, and guidance documents, and collected State data on overseas housing for fiscal year 2025 to analyze housing availability, size, costs, and waivers. GAO analyzed changes to housing affordability and Foreign Service personnel salaries in the Washington, D.C., area from 1993 to 2023-the latest available data. GAO also interviewed State officials at headquarters and at three overseas posts. GAO selected these posts to illustrate conditions for different regions, a range of embassy sizes, a mix of both owned and leased properties, and a mix of space and cost waivers.
#Recommendations
GAO recommends that the Secretary of State review and update, as applicable, State's (1) maximum housing space standards for overseas Foreign Service personnel to ensure they reflect the current economic conditions in the Washington, D.C., area and (2) method for measuring overseas housing space to align with domestic industry standards. State concurred with both recommendations.
#Recommendations for Executive Action
Agency Affected Recommendation Status
Department of State The Secretary of State should ensure that the Director of the Bureau of Overseas Buildings Operations reviews and updates, as applicable, State's maximum housing space standards for overseas Foreign Service personnel to ensure the standards are comparable to the current economic conditions in the Washington, D.C., area. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of State The Secretary of State should ensure that the Director of the bureau of Overseas Buildings Operations reviews and updates, as applicable, State's method for measuring housing space overseas to align with domestic industry standards for measuring housing space in the Washington, D.C., area. (Recommendation 2)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
***
Original text here: https://www.gao.gov/products/gao-26-107965
Army Depot Maintenance: Information on Workload, Workforce, and Challenges
WASHINGTON, Aug. 10 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Army Depot Maintenance: Information on Workload, Workforce, and Challenges
*
#Fast Facts
The Army spent more than $7.1 billion operating its Anniston and Red River depots from fiscal year 2021 through fiscal year 2025, mostly maintaining and repairing ground vehicles.
The annual total workload at Anniston varied and slightly declined, while at Red River the workload trended up during this time. The largest share of the total workload at both depots involved repairing and refurbishing parts ... Show Full Article WASHINGTON, Aug. 10 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * Army Depot Maintenance: Information on Workload, Workforce, and Challenges * #Fast Facts The Army spent more than $7.1 billion operating its Anniston and Red River depots from fiscal year 2021 through fiscal year 2025, mostly maintaining and repairing ground vehicles. The annual total workload at Anniston varied and slightly declined, while at Red River the workload trended up during this time. The largest share of the total workload at both depots involved repairing and refurbishing partsto be reused on ground vehicles.
The permanent and term-limited workforce at both depots decreased when comparing fiscal year 2021 to fiscal year 2025, while the increases in contractor personnel at both depots tempered these losses.
Welder repairing a ground vehicle at Anniston Army Depot.
Welder repairing a ground vehicle at Anniston Army Depot.
#Highlights
#What GAO Found
The Anniston and Red River Army Depots, among other things, perform maintenance and repairs on ground vehicles, including vehicles such as tanks, personnel carriers, and self-propelled artillery systems; trucks for hauling fuel and supplies; and light armored vehicles for transporting personnel and cargo. The maintenance and repairs performed at both depots include overhauls, major repairs, repairable parts, and other depot work.
The annual total workload at Anniston Army Depot varied and slightly declined overall when comparing FY 2021 to FY 2025. The depot workload at Red River Army Depot generally trended up when comparing FY 2021 to FY 2025. The largest share of the workload at both depots involved repairing parts to be reused on ground vehicles.
Total Workload in Dollars Spent Per Year, FY 2021-2025
Note: This figure includes work for Army customers, foreign militaries, and other Department of Defense and federal entities.
Overall, the size of both depots' workforce decreased when comparing FY 2021 to FY 2025. The permanent and term-limited workforce at both depots decreased while the contractor workforce at both depots increased. The increases in contractor personnel tempered the losses in permanent and term-limited staff.
Maintenance challenges faced by depot maintainers at both depots included the condition of vehicles upon arrival at the depot, the availability of parts and current technical data, workload planning, and old maintenance equipment.
#Why GAO Did This Study
The Army spent more than $7.1 billion operating its Anniston and Red River Depots from fiscal year (FY) 2021 through FY 2025. The Army spent most spent of this money maintaining and repairing ground vehicles.
House Report 119-231 (2025) accompanying a bill for the National Defense Authorization Act for Fiscal Year 2026 includes a provision for GAO to review the work performed at Army depots that primarily maintain and repair ground vehicles. This report provides information for Anniston and Red River Army Depots on how the ground vehicle-related workload and workforce has changed from FY 2021 through FY 2025, how the type of work has changed during this period, and challenges these depots face performing maintenance and repairs on ground vehicles.
We collected and analyzed Anniston and Red River Depots' workload data in terms of the numbers of overhauls, major repair work, repairable parts, and other work performed at the depots for FY 2021 through FY 2025. We also collected and analyzed cost data and type and amounts of work to examine trends in depot workload. We also collected and analyzed the depots' personnel rosters for FY 2021 through FY 2025 including data about total employees and their occupations.
GAO interviewed officials from Army Materiel Command; Tank-Automotive and Armaments Command Organic Industrial Base and Integrated Logistics Support Center; and both depots. GAO also visited both depots and met with division, branch, and line supervisors about challenges the depots face performing maintenance and repairs on ground vehicles.
For more information, contact Diana Maurer at maurerd@gao.gov.
***
Original text here: https://www.gao.gov/products/gao-26-108681
* * *
Army Depot Maintenance: Information on Workload, Workforce, and Challenges
*
#Fast Facts
The Army spent more than $7.1 billion operating its Anniston and Red River depots from fiscal year 2021 through fiscal year 2025, mostly maintaining and repairing ground vehicles.
The annual total workload at Anniston varied and slightly declined, while at Red River the workload trended up during this time. The largest share of the total workload at both depots involved repairing and refurbishing parts ... Show Full Article WASHINGTON, Aug. 10 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * Army Depot Maintenance: Information on Workload, Workforce, and Challenges * #Fast Facts The Army spent more than $7.1 billion operating its Anniston and Red River depots from fiscal year 2021 through fiscal year 2025, mostly maintaining and repairing ground vehicles. The annual total workload at Anniston varied and slightly declined, while at Red River the workload trended up during this time. The largest share of the total workload at both depots involved repairing and refurbishing partsto be reused on ground vehicles.
The permanent and term-limited workforce at both depots decreased when comparing fiscal year 2021 to fiscal year 2025, while the increases in contractor personnel at both depots tempered these losses.
Welder repairing a ground vehicle at Anniston Army Depot.
Welder repairing a ground vehicle at Anniston Army Depot.
#Highlights
#What GAO Found
The Anniston and Red River Army Depots, among other things, perform maintenance and repairs on ground vehicles, including vehicles such as tanks, personnel carriers, and self-propelled artillery systems; trucks for hauling fuel and supplies; and light armored vehicles for transporting personnel and cargo. The maintenance and repairs performed at both depots include overhauls, major repairs, repairable parts, and other depot work.
The annual total workload at Anniston Army Depot varied and slightly declined overall when comparing FY 2021 to FY 2025. The depot workload at Red River Army Depot generally trended up when comparing FY 2021 to FY 2025. The largest share of the workload at both depots involved repairing parts to be reused on ground vehicles.
Total Workload in Dollars Spent Per Year, FY 2021-2025
Note: This figure includes work for Army customers, foreign militaries, and other Department of Defense and federal entities.
Overall, the size of both depots' workforce decreased when comparing FY 2021 to FY 2025. The permanent and term-limited workforce at both depots decreased while the contractor workforce at both depots increased. The increases in contractor personnel tempered the losses in permanent and term-limited staff.
Maintenance challenges faced by depot maintainers at both depots included the condition of vehicles upon arrival at the depot, the availability of parts and current technical data, workload planning, and old maintenance equipment.
#Why GAO Did This Study
The Army spent more than $7.1 billion operating its Anniston and Red River Depots from fiscal year (FY) 2021 through FY 2025. The Army spent most spent of this money maintaining and repairing ground vehicles.
House Report 119-231 (2025) accompanying a bill for the National Defense Authorization Act for Fiscal Year 2026 includes a provision for GAO to review the work performed at Army depots that primarily maintain and repair ground vehicles. This report provides information for Anniston and Red River Army Depots on how the ground vehicle-related workload and workforce has changed from FY 2021 through FY 2025, how the type of work has changed during this period, and challenges these depots face performing maintenance and repairs on ground vehicles.
We collected and analyzed Anniston and Red River Depots' workload data in terms of the numbers of overhauls, major repair work, repairable parts, and other work performed at the depots for FY 2021 through FY 2025. We also collected and analyzed cost data and type and amounts of work to examine trends in depot workload. We also collected and analyzed the depots' personnel rosters for FY 2021 through FY 2025 including data about total employees and their occupations.
GAO interviewed officials from Army Materiel Command; Tank-Automotive and Armaments Command Organic Industrial Base and Integrated Logistics Support Center; and both depots. GAO also visited both depots and met with division, branch, and line supervisors about challenges the depots face performing maintenance and repairs on ground vehicles.
For more information, contact Diana Maurer at maurerd@gao.gov.
***
Original text here: https://www.gao.gov/products/gao-26-108681
DOGE Wall of Receipts: More Transparency Needed on How Savings Are Derived from Contract, Grant, and Lease Terminations
WASHINGTON, Aug. 6 (TNSLrpt) -- The Government Accountability Office issued the following report:
* * *
DOGE Wall of Receipts: More Transparency Needed on How Savings Are Derived from Contract, Grant, and Lease Terminations
*
#Fast Facts
The President established the Department of Government Efficiency to transform federal spending. DOGE instructed agencies to review federal contracts, grants, and real estate leases to see if they could be terminated or modified.
DOGE posted its claimed savings from this effort on a webpage known as the "Wall of Receipts," but some savings estimates are incorrect ... Show Full Article WASHINGTON, Aug. 6 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * DOGE Wall of Receipts: More Transparency Needed on How Savings Are Derived from Contract, Grant, and Lease Terminations * #Fast Facts The President established the Department of Government Efficiency to transform federal spending. DOGE instructed agencies to review federal contracts, grants, and real estate leases to see if they could be terminated or modified. DOGE posted its claimed savings from this effort on a webpage known as the "Wall of Receipts," but some savings estimates are incorrector lack supporting evidence across contracts, grants, and leases. For example, 108 leases it reported that it cut were already being phased out when DOGE was established.
We recommended that the "Wall of Receipts" prominently display its data limitations.
Screenshot of the Department of Government Efficiency's website.
#Highlights
#What GAO Found
The Department of Government Efficiency (DOGE) began posting its estimated savings on a web page known as the Wall of Receipts on February 17, 2025. As of July 7, 2026, the Wall of Receipts reported savings of $110 billion across contracts, grants, and leases, but some savings estimates are incorrect or lack supporting evidence. While DOGE provided some information about estimated savings, several issues limit the transparency and reliability of these reported savings.
* DOGE was not transparent regarding methodologies used to calculate savings. Specifically, DOGE did not use its stated methodology to calculate the majority of savings associated with the contracts reported as terminated. For grants, DOGE did not provide sufficient information to verify the method used to calculate 96 percent of DOGE-reported savings. Similarly, the Wall of Receipts does not include an explanation of how the savings from terminated leases were calculated.
* The Wall of Receipts includes leases identified for termination before DOGE was established. Specifically,108 of the 264 leases identified for termination on the Wall of Receipts, about $15.3 million of the total $53.5 million in savings, were already in process for termination when DOGE was established.
* GAO's review of selected contracts identified potential cost savings, but the basis for some reported savings is unknown. For example, DOGE reported $1.7 billion in savings on the Department of Defense's Defense Health Agency contract for IT services at more than 700 military treatment facilities worldwide. While DOGE initially identified the contract for termination, in the end, no action was taken to terminate the contract, or to reduce scope, value, or funding. Thus, no savings were achieved.
While the Wall of Receipts includes some information about the data and sources underlying reported savings, it does not sufficiently disclose limitations affecting data quality. GAO's key practices for transparently reporting government information state that federal government websites should disclose known data quality issues and limitations.
DOGE launched the initial iteration of the Wall of Receipts in February 2025 less than a month after the entity was established in January 2025. Since the initial launch, there have been no updates on the site to shed additional light on the cost savings methodology or to disclose any data limitations. As of July 7, 2026, the web page remains live. Because U.S. DOGE Service officials did not respond to requests for information, GAO could not determine the reasons why DOGE did not disclose data quality issues and limitations when the website first went live or at any time since then. Publicly reporting government data, such as on the Wall of Receipts, can have significant value. However, conveying the methodologies used to calculate savings, as well as any data limitations on the Wall of Receipts, would provide policymakers and the public with the needed caveats to better interpret and use the information.
#Why GAO Did This Study
Federal agencies obligated more than $2 trillion for contracts, grants, and leases in fiscal year 2025. In an effort to transform federal spending and ensure transparency, the President issued several executive orders, including Executive Order 14158 to establish DOGE. Additionally, agencies were directed to establish agency DOGE teams and consult with these teams to review federal contracts, grants, and real estate.
GAO was asked to evaluate DOGE's savings estimates listed on the Wall of Receipts for contract, grant, and lease terminations. This report assesses (1) the methodologies DOGE used to estimate savings from contracts, grants, and leases reported as terminated, and (2) the extent to which DOGE discloses any data limitations. This review covered savings data reported on the Wall of Receipts for contracts, grants, and leases from January 20, 2025, through July 7, 2026.
GAO analyzed data from the Wall of Receipts, publicly available federal databases, and information sources such as USASpending.gov. GAO also interviewed officials from selected federal agencies about the contracts or leases in their purview. DOGE did not respond to GAO's request for information or interviews.
#Recommendations
GAO recommends that the Executive Office of the President, through the U.S. DOGE Service, should ensure that known data quality issues and limitations are prominently displayed on the Wall of Receipts. The U.S. DOGE Service did not provide comments on this report.
#Recommendations for Executive Action
Agency Affected Recommendation Status
Executive Office of the President The Executive Office of the President, through the United States DOGE Service, should ensure that known data quality issues and limitations are prominently displayed on the Wall of Receipts. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
***
Original text here: https://www.gao.gov/products/gao-26-108615
* * *
DOGE Wall of Receipts: More Transparency Needed on How Savings Are Derived from Contract, Grant, and Lease Terminations
*
#Fast Facts
The President established the Department of Government Efficiency to transform federal spending. DOGE instructed agencies to review federal contracts, grants, and real estate leases to see if they could be terminated or modified.
DOGE posted its claimed savings from this effort on a webpage known as the "Wall of Receipts," but some savings estimates are incorrect ... Show Full Article WASHINGTON, Aug. 6 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * DOGE Wall of Receipts: More Transparency Needed on How Savings Are Derived from Contract, Grant, and Lease Terminations * #Fast Facts The President established the Department of Government Efficiency to transform federal spending. DOGE instructed agencies to review federal contracts, grants, and real estate leases to see if they could be terminated or modified. DOGE posted its claimed savings from this effort on a webpage known as the "Wall of Receipts," but some savings estimates are incorrector lack supporting evidence across contracts, grants, and leases. For example, 108 leases it reported that it cut were already being phased out when DOGE was established.
We recommended that the "Wall of Receipts" prominently display its data limitations.
Screenshot of the Department of Government Efficiency's website.
#Highlights
#What GAO Found
The Department of Government Efficiency (DOGE) began posting its estimated savings on a web page known as the Wall of Receipts on February 17, 2025. As of July 7, 2026, the Wall of Receipts reported savings of $110 billion across contracts, grants, and leases, but some savings estimates are incorrect or lack supporting evidence. While DOGE provided some information about estimated savings, several issues limit the transparency and reliability of these reported savings.
* DOGE was not transparent regarding methodologies used to calculate savings. Specifically, DOGE did not use its stated methodology to calculate the majority of savings associated with the contracts reported as terminated. For grants, DOGE did not provide sufficient information to verify the method used to calculate 96 percent of DOGE-reported savings. Similarly, the Wall of Receipts does not include an explanation of how the savings from terminated leases were calculated.
* The Wall of Receipts includes leases identified for termination before DOGE was established. Specifically,108 of the 264 leases identified for termination on the Wall of Receipts, about $15.3 million of the total $53.5 million in savings, were already in process for termination when DOGE was established.
* GAO's review of selected contracts identified potential cost savings, but the basis for some reported savings is unknown. For example, DOGE reported $1.7 billion in savings on the Department of Defense's Defense Health Agency contract for IT services at more than 700 military treatment facilities worldwide. While DOGE initially identified the contract for termination, in the end, no action was taken to terminate the contract, or to reduce scope, value, or funding. Thus, no savings were achieved.
While the Wall of Receipts includes some information about the data and sources underlying reported savings, it does not sufficiently disclose limitations affecting data quality. GAO's key practices for transparently reporting government information state that federal government websites should disclose known data quality issues and limitations.
DOGE launched the initial iteration of the Wall of Receipts in February 2025 less than a month after the entity was established in January 2025. Since the initial launch, there have been no updates on the site to shed additional light on the cost savings methodology or to disclose any data limitations. As of July 7, 2026, the web page remains live. Because U.S. DOGE Service officials did not respond to requests for information, GAO could not determine the reasons why DOGE did not disclose data quality issues and limitations when the website first went live or at any time since then. Publicly reporting government data, such as on the Wall of Receipts, can have significant value. However, conveying the methodologies used to calculate savings, as well as any data limitations on the Wall of Receipts, would provide policymakers and the public with the needed caveats to better interpret and use the information.
#Why GAO Did This Study
Federal agencies obligated more than $2 trillion for contracts, grants, and leases in fiscal year 2025. In an effort to transform federal spending and ensure transparency, the President issued several executive orders, including Executive Order 14158 to establish DOGE. Additionally, agencies were directed to establish agency DOGE teams and consult with these teams to review federal contracts, grants, and real estate.
GAO was asked to evaluate DOGE's savings estimates listed on the Wall of Receipts for contract, grant, and lease terminations. This report assesses (1) the methodologies DOGE used to estimate savings from contracts, grants, and leases reported as terminated, and (2) the extent to which DOGE discloses any data limitations. This review covered savings data reported on the Wall of Receipts for contracts, grants, and leases from January 20, 2025, through July 7, 2026.
GAO analyzed data from the Wall of Receipts, publicly available federal databases, and information sources such as USASpending.gov. GAO also interviewed officials from selected federal agencies about the contracts or leases in their purview. DOGE did not respond to GAO's request for information or interviews.
#Recommendations
GAO recommends that the Executive Office of the President, through the U.S. DOGE Service, should ensure that known data quality issues and limitations are prominently displayed on the Wall of Receipts. The U.S. DOGE Service did not provide comments on this report.
#Recommendations for Executive Action
Agency Affected Recommendation Status
Executive Office of the President The Executive Office of the President, through the United States DOGE Service, should ensure that known data quality issues and limitations are prominently displayed on the Wall of Receipts. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
***
Original text here: https://www.gao.gov/products/gao-26-108615
Carbon Capture Tax Credit: Actions Needed to Improve Federal Administration and Evaluation of Tax Expenditure
WASHINGTON, Aug. 6 (TNSLrpt) -- The Government Accountability Office issued the following report:
* * *
Carbon Capture Tax Credit: Actions Needed to Improve Federal Administration and Evaluation of Tax Expenditure
*
#Fast Facts
Carbon capture technology can reduce carbon in the atmosphere by storing it underground or using it to make products like concrete or jet fuel.
The 45Q tax credit was created to incentivize development of this technology. But some taxpayers have difficulty claiming it. Those who use captured carbon to make products face the biggest hurdles-long delays for approval ... Show Full Article WASHINGTON, Aug. 6 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * Carbon Capture Tax Credit: Actions Needed to Improve Federal Administration and Evaluation of Tax Expenditure * #Fast Facts Carbon capture technology can reduce carbon in the atmosphere by storing it underground or using it to make products like concrete or jet fuel. The 45Q tax credit was created to incentivize development of this technology. But some taxpayers have difficulty claiming it. Those who use captured carbon to make products face the biggest hurdles-long delays for approvaland a high rejection rate, for example.
No agency is tasked with measuring results and the law didn't set clear goals, so it's hard to know if the 45Q tax credit is working.
We made recommendations to Congress and agencies to improve oversight and administration of the tax credit.
Industrial carbon capture and storage facility with tall metal towers, and pipes.
#Highlights
#What GAO Found
The Carbon Oxide Sequestration Credit (45Q) is a tax credit provided for certain carbon oxides that are captured at emission sources or directly from the air and either stored underground or used to produce products. The credit has been amended multiple times, including by the 2022 Inflation Reduction Act (IRA), which added new credit features. More recently, the One Big Beautiful Bill Act created parity in credit values across uses of captured carbon. As of March 2026, there were 33 carbon capture facilities in the U.S., with additional facilities planned. The number of 45Q credit claims more than tripled from 2019 to 2023, according to IRS data.
The Internal Revenue Service (IRS) has taken several actions to administer the 45Q credit and mitigate potential noncompliance. However, taxpayers using carbon to produce products face compliance burdens, delays, and uncertainty in claiming the credit. GAO identified areas in the approval process for carbon utilization where IRS and the Department of Energy (DOE) could potentially minimize compliance burden and improve certainty for taxpayers. Pursuing such opportunities-for example, streamlining certain processes, or clarifying acceptable datasets that can be used to calculate carbon displaced-could improve the process and help minimize delays for both agencies and taxpayers.
Multiple potential goals, the lack of a designated agency to evaluate the effectiveness of the credit, and data limitations complicate Congress's ability to understand the performance of the 45Q credit. Even so, periodic reviews of tax expenditures are crucial for informed oversight. GAO has previously recommended various actions Congress and agencies could take to improve oversight for other tax expenditures, such as identifying what should be analyzed and by whom. In this report, GAO identified key questions for Congress to consider directing agencies to analyze to help determine the performance of the credit. These key questions are: (1) how well the credit is working to achieve its goals, (2) how efficiently the credit is performing and (3) how the credit compares to other policy tools.
#Why GAO Did This Study
The 45Q credit was created in 2008 to incentivize the development of carbon capture technology and reduce carbon emissions. Carbon capture involves complex and novel technology, and the 45Q credit could result in potentially substantial revenue expenditures.
The IRA includes a provision for GAO to review the distribution and use of IRA funds. This report assesses (1) IRS's administration of the 45Q credit, and (2) the challenges in evaluating the effectiveness of the credit. GAO reviewed agency policies and procedures and interviewed officials from IRS, DOE, and the Environmental Protection Agency. GAO also interviewed selected external stakeholders knowledgeable about the 45Q credit, representing advocacy, research, and industry. GAO also conducted two site visits to carbon capture sites in Houston, Texas.
#Recommendations
GAO is recommending that Congress consider directing agencies to collect and analyze data to answer key questions about the performance of the 45Q credit, such as how well it is working to achieve its goals, how efficiently it is performing, and how it compares to other policy tools.
GAO is making four recommendations to IRS and two recommendations to DOE to improve the review process for carbon utilization, by reducing taxpayers' burden while still mitigating potential noncompliance. These include determining a time period of carbon capture data needed to begin claiming the credit, and clarifying datasets acceptable for calculating carbon displaced. IRS partially agreed with one recommendation; IRS and DOE disagreed with the remaining five. GAO maintains the recommendations are warranted as discussed in the report.
#Matter for Congressional Consideration
Matter Status Comments
Congress should consider directing agencies to collect and analyze data to answer key questions about the performance of the 45Q credit, such as how well it is working to achieve specific goals, how efficiently it is performing, and how it compares to other policy tools. (Matter for Congressional Consideration 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
#Recommendations for Executive Action
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with DOE, should determine the minimum time period of production system direct data needed to determine the displacement factor in the LCA pre-approval, and update guidance to allow for taxpayers that meet that minimum to submit an LCA for pre-approval prior to the end of the tax year. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with DOE, should continue creating additional comparison product system technology baselines, including by implementing a process for taxpayers to request specific technology baselines, similar to the process for requesting provisional emissions rates for the 45V and 45Z credits. (Recommendation 2)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with DOE, should determine the feasibility, including the costs and benefits, of developing a Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model for common 45Q utilization pathways, allowing an LCA process that can be submitted upon tax return filing without prior review, similar to the 45V and 45Z credits. (Recommendation 3)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Energy The Secretary of Energy, in coordination with IRS, should adjust the 45Q credit guidance on LCAs to clarify which GREET model data are acceptable for use with a 45Q credit LCA and how and when they can be used. (Recommendation 4)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with DOE, should modify the IRS/DOE memorandum of understanding (MOU) to provide taxpayers, with appropriate limitations, an opportunity to modify elements of their LCAs prior to rejection, rather than having to resubmit their LCAs and restart the process. (Recommendation 5)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Energy The Secretary of Energy, in coordination with IRS, should modify the IRS/DOE MOU to provide taxpayers, with appropriate limitations, an opportunity to modify elements of their LCA prior to rejection, rather than having to resubmit their LCAs and restart the DOE review process. (Recommendation 6)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
See All 6 Recommendations
***
Original text here: https://www.gao.gov/products/gao-26-107711
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Carbon Capture Tax Credit: Actions Needed to Improve Federal Administration and Evaluation of Tax Expenditure
*
#Fast Facts
Carbon capture technology can reduce carbon in the atmosphere by storing it underground or using it to make products like concrete or jet fuel.
The 45Q tax credit was created to incentivize development of this technology. But some taxpayers have difficulty claiming it. Those who use captured carbon to make products face the biggest hurdles-long delays for approval ... Show Full Article WASHINGTON, Aug. 6 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * Carbon Capture Tax Credit: Actions Needed to Improve Federal Administration and Evaluation of Tax Expenditure * #Fast Facts Carbon capture technology can reduce carbon in the atmosphere by storing it underground or using it to make products like concrete or jet fuel. The 45Q tax credit was created to incentivize development of this technology. But some taxpayers have difficulty claiming it. Those who use captured carbon to make products face the biggest hurdles-long delays for approvaland a high rejection rate, for example.
No agency is tasked with measuring results and the law didn't set clear goals, so it's hard to know if the 45Q tax credit is working.
We made recommendations to Congress and agencies to improve oversight and administration of the tax credit.
Industrial carbon capture and storage facility with tall metal towers, and pipes.
#Highlights
#What GAO Found
The Carbon Oxide Sequestration Credit (45Q) is a tax credit provided for certain carbon oxides that are captured at emission sources or directly from the air and either stored underground or used to produce products. The credit has been amended multiple times, including by the 2022 Inflation Reduction Act (IRA), which added new credit features. More recently, the One Big Beautiful Bill Act created parity in credit values across uses of captured carbon. As of March 2026, there were 33 carbon capture facilities in the U.S., with additional facilities planned. The number of 45Q credit claims more than tripled from 2019 to 2023, according to IRS data.
The Internal Revenue Service (IRS) has taken several actions to administer the 45Q credit and mitigate potential noncompliance. However, taxpayers using carbon to produce products face compliance burdens, delays, and uncertainty in claiming the credit. GAO identified areas in the approval process for carbon utilization where IRS and the Department of Energy (DOE) could potentially minimize compliance burden and improve certainty for taxpayers. Pursuing such opportunities-for example, streamlining certain processes, or clarifying acceptable datasets that can be used to calculate carbon displaced-could improve the process and help minimize delays for both agencies and taxpayers.
Multiple potential goals, the lack of a designated agency to evaluate the effectiveness of the credit, and data limitations complicate Congress's ability to understand the performance of the 45Q credit. Even so, periodic reviews of tax expenditures are crucial for informed oversight. GAO has previously recommended various actions Congress and agencies could take to improve oversight for other tax expenditures, such as identifying what should be analyzed and by whom. In this report, GAO identified key questions for Congress to consider directing agencies to analyze to help determine the performance of the credit. These key questions are: (1) how well the credit is working to achieve its goals, (2) how efficiently the credit is performing and (3) how the credit compares to other policy tools.
#Why GAO Did This Study
The 45Q credit was created in 2008 to incentivize the development of carbon capture technology and reduce carbon emissions. Carbon capture involves complex and novel technology, and the 45Q credit could result in potentially substantial revenue expenditures.
The IRA includes a provision for GAO to review the distribution and use of IRA funds. This report assesses (1) IRS's administration of the 45Q credit, and (2) the challenges in evaluating the effectiveness of the credit. GAO reviewed agency policies and procedures and interviewed officials from IRS, DOE, and the Environmental Protection Agency. GAO also interviewed selected external stakeholders knowledgeable about the 45Q credit, representing advocacy, research, and industry. GAO also conducted two site visits to carbon capture sites in Houston, Texas.
#Recommendations
GAO is recommending that Congress consider directing agencies to collect and analyze data to answer key questions about the performance of the 45Q credit, such as how well it is working to achieve its goals, how efficiently it is performing, and how it compares to other policy tools.
GAO is making four recommendations to IRS and two recommendations to DOE to improve the review process for carbon utilization, by reducing taxpayers' burden while still mitigating potential noncompliance. These include determining a time period of carbon capture data needed to begin claiming the credit, and clarifying datasets acceptable for calculating carbon displaced. IRS partially agreed with one recommendation; IRS and DOE disagreed with the remaining five. GAO maintains the recommendations are warranted as discussed in the report.
#Matter for Congressional Consideration
Matter Status Comments
Congress should consider directing agencies to collect and analyze data to answer key questions about the performance of the 45Q credit, such as how well it is working to achieve specific goals, how efficiently it is performing, and how it compares to other policy tools. (Matter for Congressional Consideration 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
#Recommendations for Executive Action
Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with DOE, should determine the minimum time period of production system direct data needed to determine the displacement factor in the LCA pre-approval, and update guidance to allow for taxpayers that meet that minimum to submit an LCA for pre-approval prior to the end of the tax year. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with DOE, should continue creating additional comparison product system technology baselines, including by implementing a process for taxpayers to request specific technology baselines, similar to the process for requesting provisional emissions rates for the 45V and 45Z credits. (Recommendation 2)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with DOE, should determine the feasibility, including the costs and benefits, of developing a Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model for common 45Q utilization pathways, allowing an LCA process that can be submitted upon tax return filing without prior review, similar to the 45V and 45Z credits. (Recommendation 3)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Energy The Secretary of Energy, in coordination with IRS, should adjust the 45Q credit guidance on LCAs to clarify which GREET model data are acceptable for use with a 45Q credit LCA and how and when they can be used. (Recommendation 4)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Internal Revenue Service The Commissioner of Internal Revenue, in coordination with DOE, should modify the IRS/DOE memorandum of understanding (MOU) to provide taxpayers, with appropriate limitations, an opportunity to modify elements of their LCAs prior to rejection, rather than having to resubmit their LCAs and restart the process. (Recommendation 5)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Energy The Secretary of Energy, in coordination with IRS, should modify the IRS/DOE MOU to provide taxpayers, with appropriate limitations, an opportunity to modify elements of their LCA prior to rejection, rather than having to resubmit their LCAs and restart the DOE review process. (Recommendation 6)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
See All 6 Recommendations
***
Original text here: https://www.gao.gov/products/gao-26-107711
Semiconductors: Commerce Needs Plan to Meet CHIPS for America R&D Requirements
WASHINGTON, Aug. 6 (TNSLrpt) -- The Government Accountability Office issued the following report:
* * *
Semiconductors: Commerce Needs Plan to Meet CHIPS for America R&D Requirements
*
#Fast Facts
Semiconductors (or chips) are critical in most industries. To support the economy and ensure a reliable U.S. supply, in 2021, Congress required the Commerce Department to incentivize chip development.
Our first report in this series found that Commerce had awarded billions of dollars to 40 manufacturing projects. As of July 15, 2026, it had funded 49 projects.
But Commerce's research and development ... Show Full Article WASHINGTON, Aug. 6 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * Semiconductors: Commerce Needs Plan to Meet CHIPS for America R&D Requirements * #Fast Facts Semiconductors (or chips) are critical in most industries. To support the economy and ensure a reliable U.S. supply, in 2021, Congress required the Commerce Department to incentivize chip development. Our first report in this series found that Commerce had awarded billions of dollars to 40 manufacturing projects. As of July 15, 2026, it had funded 49 projects. But Commerce's research and developmentprograms have stalled. The agency canceled most efforts, as they don't align with executive priorities. To prevent the U.S. from falling behind in global competitiveness, we recommended that Commerce plan how to meet statutory R&D requirements.
Latex-gloved fingers holding a semiconductor
#Highlights
#What GAO Found
The Department of Commerce has continued to implement the semiconductor facilities and equipment incentives program, and awardees have made progress on milestones. Since July 2025, Commerce has awarded nine new projects, for a total of 49 projects across 24 companies. When setting award amounts, Commerce considered new factors as compared to prior awards, such as whether the company would provide equity in exchange for funding. Commerce also amended existing awards for 14 companies. As of April 2026, awardees had completed all required milestones by their due dates, but some milestones had fallen behind anticipated schedules. Commerce has disbursed $13.1 billion to awardees-approximately 42 percent of the total $31.5 billion in direct funding.
Commerce initially established key advanced microelectronics R&D activities but later canceled awards representing $7.8 billion of the $11 billion appropriated. The agency significantly revised its approach to align with current administration priorities but did not have a plan or timeline for fully meeting statutory requirements-specifically those related to the National Semiconductor Technology Center, National Advanced Packaging Manufacturing Program (NAPMP), and Industrial Advisory Committee. For example, Commerce canceled the center's award in 2025, but its plan to reestablish the center is not sufficiently detailed to show how it will meet relevant statutory requirements. Commerce also canceled or paused NAPMP awards and has not renewed the advisory committee charter. Without a detailed plan for reestablishing these entities in line with statute, Commerce may miss opportunities to advance U.S. semiconductor technologies, leaving the U.S. reliant on other countries.
Commerce's Changes to Advanced Microelectronics R&D Activities
#Why GAO Did This Study
Semiconductors, also called chips, are small electronic devices that are critical to nearly all industries. A recent global semiconductor shortage exposed long-term risks in the supply chain.
The William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (as amended, the FY21 NDAA) authorized Commerce to incentivize semiconductor facilities and equipment projects and support advanced microelectronics R&D.
The FY21 NDAA also includes a provision for GAO to issue a series of reports. This second report updates GAO's December 2025 report on the status of financial assistance awards and projects funded under the semiconductor incentives program as of June 5, 2026, and assesses the status of Commerce's efforts on the advanced microelectronics R&D programs, among other objectives.
GAO analyzed Commerce documents, including project milestone and disbursement documentation. In addition, GAO reviewed requirements in the FY21 NDAA and compared Commerce's efforts to those requirements. GAO also interviewed Commerce officials.
#Recommendations
GAO is making three recommendations that Commerce develop plans and timelines for how it will move forward to ensure alignment with FY21 NDAA requirements related to (1) the National Semiconductor Technology Center, (2) NAPMP, and (3) Industrial Advisory Committee. The agency should implement these recommendations within 1 year of the date of this report. Commerce agreed with the recommendations.
#Recommendations for Executive Action
Agency Affected Recommendation Status
Department of Commerce The Secretary of Commerce should ensure that the Director of the CHIPS R&D Office develops a plan and timeline with sufficient detail to address how and when the National Semiconductor Technology Center will align with all applicable requirements in the FY21 NDAA. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Commerce The Secretary of Commerce should ensure that the Director of the CHIPS R&D Office fully implements the NAPMP requirements by either (a) making a timely decision to move forward with the two existing awards or (b) developing a plan and timeline for how Commerce will implement the NAPMP requirements in the FY21 NDAA if it decides not to move forward with the awards. (Recommendation 2)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Commerce The Secretary of Commerce should ensure that the Director of the CHIPS R&D Office develops a plan and timeline describing how and when Commerce will reestablish the Industrial Advisory Committee to align with all applicable requirements in the FY21 NDAA. (Recommendation 3)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
***
Original text here: https://www.gao.gov/products/gao-26-109121
* * *
Semiconductors: Commerce Needs Plan to Meet CHIPS for America R&D Requirements
*
#Fast Facts
Semiconductors (or chips) are critical in most industries. To support the economy and ensure a reliable U.S. supply, in 2021, Congress required the Commerce Department to incentivize chip development.
Our first report in this series found that Commerce had awarded billions of dollars to 40 manufacturing projects. As of July 15, 2026, it had funded 49 projects.
But Commerce's research and development ... Show Full Article WASHINGTON, Aug. 6 (TNSLrpt) -- The Government Accountability Office issued the following report: * * * Semiconductors: Commerce Needs Plan to Meet CHIPS for America R&D Requirements * #Fast Facts Semiconductors (or chips) are critical in most industries. To support the economy and ensure a reliable U.S. supply, in 2021, Congress required the Commerce Department to incentivize chip development. Our first report in this series found that Commerce had awarded billions of dollars to 40 manufacturing projects. As of July 15, 2026, it had funded 49 projects. But Commerce's research and developmentprograms have stalled. The agency canceled most efforts, as they don't align with executive priorities. To prevent the U.S. from falling behind in global competitiveness, we recommended that Commerce plan how to meet statutory R&D requirements.
Latex-gloved fingers holding a semiconductor
#Highlights
#What GAO Found
The Department of Commerce has continued to implement the semiconductor facilities and equipment incentives program, and awardees have made progress on milestones. Since July 2025, Commerce has awarded nine new projects, for a total of 49 projects across 24 companies. When setting award amounts, Commerce considered new factors as compared to prior awards, such as whether the company would provide equity in exchange for funding. Commerce also amended existing awards for 14 companies. As of April 2026, awardees had completed all required milestones by their due dates, but some milestones had fallen behind anticipated schedules. Commerce has disbursed $13.1 billion to awardees-approximately 42 percent of the total $31.5 billion in direct funding.
Commerce initially established key advanced microelectronics R&D activities but later canceled awards representing $7.8 billion of the $11 billion appropriated. The agency significantly revised its approach to align with current administration priorities but did not have a plan or timeline for fully meeting statutory requirements-specifically those related to the National Semiconductor Technology Center, National Advanced Packaging Manufacturing Program (NAPMP), and Industrial Advisory Committee. For example, Commerce canceled the center's award in 2025, but its plan to reestablish the center is not sufficiently detailed to show how it will meet relevant statutory requirements. Commerce also canceled or paused NAPMP awards and has not renewed the advisory committee charter. Without a detailed plan for reestablishing these entities in line with statute, Commerce may miss opportunities to advance U.S. semiconductor technologies, leaving the U.S. reliant on other countries.
Commerce's Changes to Advanced Microelectronics R&D Activities
#Why GAO Did This Study
Semiconductors, also called chips, are small electronic devices that are critical to nearly all industries. A recent global semiconductor shortage exposed long-term risks in the supply chain.
The William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (as amended, the FY21 NDAA) authorized Commerce to incentivize semiconductor facilities and equipment projects and support advanced microelectronics R&D.
The FY21 NDAA also includes a provision for GAO to issue a series of reports. This second report updates GAO's December 2025 report on the status of financial assistance awards and projects funded under the semiconductor incentives program as of June 5, 2026, and assesses the status of Commerce's efforts on the advanced microelectronics R&D programs, among other objectives.
GAO analyzed Commerce documents, including project milestone and disbursement documentation. In addition, GAO reviewed requirements in the FY21 NDAA and compared Commerce's efforts to those requirements. GAO also interviewed Commerce officials.
#Recommendations
GAO is making three recommendations that Commerce develop plans and timelines for how it will move forward to ensure alignment with FY21 NDAA requirements related to (1) the National Semiconductor Technology Center, (2) NAPMP, and (3) Industrial Advisory Committee. The agency should implement these recommendations within 1 year of the date of this report. Commerce agreed with the recommendations.
#Recommendations for Executive Action
Agency Affected Recommendation Status
Department of Commerce The Secretary of Commerce should ensure that the Director of the CHIPS R&D Office develops a plan and timeline with sufficient detail to address how and when the National Semiconductor Technology Center will align with all applicable requirements in the FY21 NDAA. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Commerce The Secretary of Commerce should ensure that the Director of the CHIPS R&D Office fully implements the NAPMP requirements by either (a) making a timely decision to move forward with the two existing awards or (b) developing a plan and timeline for how Commerce will implement the NAPMP requirements in the FY21 NDAA if it decides not to move forward with the awards. (Recommendation 2)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Commerce The Secretary of Commerce should ensure that the Director of the CHIPS R&D Office develops a plan and timeline describing how and when Commerce will reestablish the Industrial Advisory Committee to align with all applicable requirements in the FY21 NDAA. (Recommendation 3)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
***
Original text here: https://www.gao.gov/products/gao-26-109121