Why it Matters

Congress has designated approximately $39 billion for more than 20,000 Community Project Funding and Congressionally Directed Spending projects over three fiscal years, yet agencies had obligated only about 61% of those funds by the end of fiscal year 2024, according to a new Government Accountability Office report. The findings come as lawmakers continue debating the future of congressional earmarks and provide one of the most comprehensive assessments of how the restored spending process is functioning.

The Restoration and Its Scope

House Republicans banned earmarks in 2011, arguing the practice contributed to wasteful spending and legislative dysfunction. Congress restored the process beginning with fiscal year 2022 appropriations, with the House using the Community Project Funding process and the Senate using Congressionally Directed Spending. The restored system includes transparency requirements requiring members to publicly disclose funding requests, certify they have no financial interest in the projects and post project information online.

The more than 20,000 projects tracked by the GAO are distributed across all 50 states, the District of Columbia and U.S. territories. They span education, health care, transportation and other sectors and are administered by 19 federal agencies, including the Departments of Transportation, Education, Health and Human Services, Housing and Urban Development, Defense and Agriculture, as well as the Environmental Protection Agency and the Army Corps of Engineers.

The Obligation Gap

The GAO report, published July 16, found that agencies had obligated about 61% of the $39 billion designated for Community Project Funding and Congressionally Directed Spending projects by the end of fiscal year 2024. That leaves roughly $15 billion unobligated, although the report notes many projects remain within their legally authorized periods of availability. The GAO also estimated that about 16% of the funds had been outlayed as of the end of fiscal year 2024.

The report does not evaluate whether Congress should continue or eliminate earmarks but provides data lawmakers may use as they debate discretionary spending and the future of the program.

Distribution and Implementation

The overall 61% obligation rate varies by agency and program. The GAO found that about 60% of project recipients reported experiencing at least one implementation challenge, including managing project time frames, while most agencies also reported oversight challenges such as staffing constraints and working with first-time federal funding recipients.

The transparency requirements incorporated into the restored earmark process were intended to address longstanding concerns about favoritism and waste. Members must publicly justify their requests, certify they have no personal financial interest in the projects and disclose project information online.

What's at Stake

The $39 billion designated through Community Project Funding and Congressionally Directed Spending supports projects involving education facilities, health care infrastructure, transportation improvements and other local initiatives nationwide. While most funding has been obligated, the GAO's findings indicate a significant share remains to be committed, reflecting both the multiyear nature of many projects and implementation challenges identified by agencies and recipients.

Supporters of the restored earmark process can point to the substantial amount of funding already moving through the system, while critics may focus on the billions of dollars that remain unobligated. The report concludes that the transparency requirements and oversight mechanisms established when earmarks were reinstated provide greater visibility into the process, but agencies and recipients continue to face implementation challenges that could affect project delivery.

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