Oversight Panel Similar to PRAC Recommended for IIJA Funding
If imitation is the sincerest form of flattery, the creation of an oversight entity to ensure proper spending of Infrastructure Investment and Jobs Act (IIJA) (Pub. L. 117-58) funds could become a reality down the road. Michael E. Horowitz, chair of the Pandemic Response Accountability Committee (PRAC), recently met with President Biden and senior leaders with the Office of Management and Budget (OMB), federal Inspectors General offices (OIGs), and the Council of the Inspectors General on Integrity and Efficiency to explain the importance of ensuring robust oversight of IIJA programs.
“Efficient and effective implementation of a large-scale spending program like this requires a coordinated governmentwide approach,” Horowitz said. “The PRAC’s experiences in overseeing and coordinating more than $5 trillion in pandemic relief funding is a successful template to follow.”
The PRAC was created in 2020 to oversee trillions of dollars in emergency relief funding provided to assist economic and healthcare disruptions stemming from the COVID-19 pandemic. The recent meeting coincided with the release of OMB Memorandum M-22-12, which directs federal agencies to oversee infrastructure spending with the same collaborative approach that has been used for pandemic spending. With respect to the American Rescue Plan Act (Pub. L. 117-2), the Biden administration established a dedicated implementation team to help coordinate the various programs the Act created or funded. Over the past year, the team has held more than 25 “Gold Standard” meetings that bring together federal agency officials, OIGs, the PRAC and OMB officials.
The Gold Standard meetings are a new model for coordinated oversight that enables agency officials to fine-tune pandemic relief programs before they launch, building in lessons learned that can reduce fraud and improve program effectiveness. For example, the meetings have strengthened controls for small business loan programs and improved the sharing of state unemployment insurance data with federal officials to fight fraud. “We’ve built an independent oversight model based on a foundation of collaboration, transparency and the use of data analytics,” according to Horowitz. “We’ll continue to share what we’ve learned so it can be applied” to programs receiving IIJA funding.
Considering the potential for fraud, waste and abuse in such a huge funding package, coordination and oversight is critical to ensure these funds are spent as intended.
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