The EPA Left $20 Million Unawarded in the Sewer Overflow and Stormwater Reuse Municipal Grants Program

The EPA did not consistently manage its Sewer Overflow and Stormwater Reuse Municipal Grants, or OSG, Program in accordance with some applicable laws, regulations, policies, and guidance. We found that, as of January 10, 2024, the EPA had not awarded approximately $20 million, or about 18 percent, of the approximately $110 million allocated to states within the OSG Program for fiscal years 2020 through 2022. In addition, the EPA failed to meet its statutory requirement to submit a report to Congress, provided insufficient justification on required merit review worksheets, and allowed a cost share to be imposed on a grant that should have been exempt because the communities to benefit were rural or financially distressed.