GAO Highlights GSA’s Challenges and Opportunities in Managing Inflation Reduction Act Funds

The U.S. Government Accountability Office (GAO) released a report in April 2025 titled INFLATION REDUCTION ACT: Opportunities Exist to Help Ensure GSA Programs Achieve Intended Results (GAO-25-107349). The report, authored by David Marroni and his team at GAO, critically examines the General Services Administration’s (GSA) use of $3.375 billion in Inflation Reduction Act (IRA) funding intended to enhance the sustainability of federal buildings. It finds that while GSA has taken important steps toward effective use of the funds, there are key areas needing improvement to ensure long-term success.

As of January 31, 2025, GSA had selected 362 projects across the U.S. aimed at incorporating low embodied carbon materials, deploying emerging and sustainable technologies, and converting facilities into high-performance green buildings. These selections accounted for nearly 99 percent of the available IRA funding. However, GSA had only obligated about 49 percent of the funds and expended a mere 5 percent, raising concerns about whether all funds will be effectively deployed within statutory deadlines. Notably, GSA’s programs for low embodied carbon materials and emerging technologies were guided by robust selection frameworks grounded in leading practices for capital investment decision-making. In contrast, GSA had not yet developed a comparable framework for its high-performance green building projects, risking less structured and potentially less impactful investment decisions in that area.

Additionally, GAO found that while GSA established 11 performance goals for its IRA programs, it had not set interim targets to measure incremental progress nor consolidated the goals into a single, publicly accessible document. This limits both Congressional and public oversight of whether the agency’s substantial IRA investments are delivering the intended environmental benefits. Although GSA is not legally required to publish its performance goals, GAO emphasized that greater transparency would strengthen accountability.

The GAO report recommends that GSA promptly develop a project selection framework for the high-performance green buildings program, introduce interim targets for all performance goals, and publish complete and accessible information about these goals. GSA agreed with these recommendations and indicated that it plans to take corrective actions.

This report carries implications for federal contractors and sustainability stakeholders. It underscores the importance of sound project selection and performance tracking mechanisms when managing large-scale, environmentally focused federal investments. For contractors, especially those supplying low-carbon materials or sustainable building technologies, alignment with GSA’s evolving criteria and transparency initiatives could influence future opportunities. Moreover, the report serves as a reminder that even well-funded sustainability efforts must be underpinned by strong internal controls and public accountability to achieve their intended impact.

For more details, the full GAO report can be accessed at https://www.gao.gov/products/GAO-25-107349.

Disclaimer: This blog post is a summary of publicly available information and is provided for informational purposes only. It is not guaranteed to be accurate or up to date and does not constitute legal advice.