IIJA – Financial Assistance to Facilities that Purchase and Process Byproducts from Ecosystem Restoration Projects

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Date Issued

Wednesday, February 11, 2026

Submitting OIG

Department of Agriculture OIG

Agencies Reviewed/Investigated

Department of Agriculture

Components

Forest Service

Report Number

08801-0002-51

Report Description

We determined that the Forest Service did not provide financial assistance to facilities that purchase and process ecosystem restoration byproducts in accordance with IIJA requirements, resulting in $86 million in questioned costs and $94 million in unsupported costs.

Report Type

Inspection / Evaluation

Agency Wide

Yes

Number of Recommendations

Questioned Costs

$180,396,829

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 6 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	Yes	$86,118,000	$0
Establish and implement a control to track the amount of S&E and FS Ops funds expended for IIJA Section 40804(b)(3).
2	Yes	$0	$0
Implement best practices for interagency coordination including but not limited to entering into a written agreement with DOI to document the roles, responsibilities, and expected outcomes.
3	Yes	$3,327,829	$0
Establish and implement controls to ensure that remaining award decisions are fully supported by data to ensure facilities are in close proximity to high or very high risk areas.
4	Yes	$94,278,829	$0
Evaluate whether the 132 awards approved from FY 2022 to FY 2024, which total $94.2 million in financial assistance, substantially decrease the cost of conducting ecological health restoration projects. Document conclusion reached and proceed to recover funds, as applicable.
5	Yes	$0	$0
Develop and implement a quantifiable and properly supported process for determining how the funding awarded to facilities would substantially or does substantially decrease the cost of conducting ecological restoration projects.
6	Yes	$0	$0
Update procedures for future restoration project funding to account for funding provided to facilities under Section 40804(b)(3).