A Northern Alabama doctor and her husband, who also served as her practice manager, pleaded guilty today for their roles in unlawfully distributing opioids and other controlled substances while the doctor was absent from the clinic.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Prim F. Escalona of the Northern District of Alabama, Special Agent in Brad L Byerly of the U.S. Drug Enforcement Administration’s (DEA) New Orleans Field Division, and Special Agent in Charge Johnnie Sharp, Jr. of the Federal Bureau of Investigation’s (FBI) Birmingham Field Office made the announcement.
Elizabeth Korcz, M.D., 47, a licensed physician, and Matthew Korcz, 47, her husband and former practice manager, both of Hoover, Alabama, pleaded guilty to conspiracy to unlawfully distribute controlled substances. As part of the plea, the defendants also agreed to forfeit $46,181.79. Sentencing will be scheduled at a later date.
As part of their guilty pleas, the defendants admitted to providing dangerous doses of hydrocodone to patients who were not examined by a medical professional and while Dr. Korcz was absent from their clinic. The defendants owned and operated Hoover Alt MD, a purported medical clinic with an in-house dispensary. The defendants did not employ registered nurses or other qualified medical professionals, despite Dr. Korcz’s absences. The defendants admitted to allowing hydrocodone to be dispensed from their in-house dispensary while Dr. Korcz was out of state on multiple occasions, according to the plea agreement.
DEA and FBI investigated the case. Trial Attorney Devon Helfmeyer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Greetings I’m Sam.
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- Texas Entrepreneur Charged with Spending COVID Relief Funds on Improper Expenses Including Lamborghini and Strip ClubBy Sam NewsAugust 4, 2020A Houston, Texas man has been taken into custody on allegations he fraudulently obtained more than $1.6 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.[Read More…]
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- Indian Health Service: Actions Needed to Improve Oversight of Federal Facilities’ Decision-Making About the Use of FundsBy Sam NewsNovember 12, 2020The Indian Health Service's (IHS) oversight of federally operated health care facilities' decision-making process about the use of funds has been limited and inconsistent. Funds include those from appropriations, as well as payments from federal programs, such as Medicaid and from private insurance, for care provided by IHS to American Indians and Alaska Natives (AI/AN). While some oversight functions are performed at IHS headquarters, the agency has delegated primary responsibility for the oversight of health care facilities' decision-making about the use of funds to its area offices. Area office officials said the oversight they provide has generally included (1) reviewing facilities' scope of services, and (2) reviewing facilities' proposed expenditures. However, GAO's review found that this oversight was limited and inconsistent across IHS area offices, in part, due to a lack of consistent agency-wide processes. While IHS officials from all nine area offices GAO interviewed said they reviewed facilities' scope of services and coordinated with tribes when doing so, none reported systematically reviewing the extent to which their facilities' services were meeting local health needs, such as by incorporating the results of community health assessments. Such assessments can involve the collection and assessment of data, as well as the input of local community members and leaders to identify and prioritize community needs. These assessments can be used by facilities to assess their resources and identify priorities for facility investment. While IHS has identified such assessments as a priority, the agency does not require federally operated facilities to conduct such assessments or require the area offices to use them as they review facilities' scope of services. To ensure that facilities are effectively managing their resources, IHS has a process to guide its review of facilities' proposed construction projects that cost at least $25,000. However, IHS does not have a similar process to guide its oversight of other key proposed expenditures, such as those involving the purchase of major medical equipment, the hiring of providers, or the expansion of services. Specifically, GAO found limitations and inconsistencies with respect to requiring a documented justification for proposed expenditures; documenting the review and approval of decisions; and conducting an impact assessment on patient access, cost, and quality of care. The limitations and inconsistencies that GAO found in IHS's oversight are driven by the lack of consistent oversight processes across the area offices. Without establishing a systematic oversight process to compare federally operated facilities' current services to population needs, and to guide the review of facilities' proposed expenditures, IHS cannot ensure that its facilities are identifying and investing in projects to meet the greatest community needs, and therefore that federal resources are being maximized to best serve the AI/AN population. IHS, an agency of the Department of Health and Human Services, provides care to AI/AN populations through a system of federally operated and tribally operated health care facilities. AI/AN have experienced long standing problems accessing needed health care services. GAO has previously reported that IHS has not been able to pay for all eligible health care services; however, the resources available to federally operated facilities have recently grown. This report assesses IHS oversight of federal health care facilities' decision-making about the use of funds. GAO reviewed IHS policies and documents; and interviewed IHS officials from headquarters, nine area offices, and three federally operated facilities (two hospitals and one health clinic). GAO recommends that IHS develop processes to guide area offices in (1) systematically assessing how federally operated facilities will effectively meet the needs of their patient populations, and (2) reviewing federal facilities' spending proposals. HHS concurred with these recommendations. For more information, contact Jessica Farb at (202) 512-7114 or email@example.com.[Read More…]
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- Laboratory Safety: FDA Should Strengthen Efforts to Provide Effective OversightBy Sam NewsOctober 8, 2020The Food and Drug Administration (FDA) has taken steps intended to improve safety at its laboratories, including those that work with hazardous biological agents. Specifically, FDA created the Office of Laboratory Safety (OLS) in 2017 as a safety oversight body for all FDA laboratories. Establishment of FDA's Office of Laboratory Safety (OLS) Note: Prior to March 2019, OLS was referred to as the Office of Laboratory Science and Safety. In coordination with FDA's operating divisions—known as centers—OLS has standardized safety policies, incident reporting, inspections, and safety training. However in creating OLS, FDA did not implement key reform practices that could have helped ensure OLS's effectiveness. For example, FDA's centers and OLS did not reach a shared understanding of OLS's roles and responsibilities—a key practice for effective agency reforms. Although senior agency leaders were involved in developing OLS's strategic plan, disagreements about OLS's role raised by center directors at that time still remain. For example, center directors told GAO that OLS's mission should not include science, laboratory quality management, or inspections. Conversely, the director of OLS said OLS remains committed to its mission as envisioned in the strategic plan, which includes these areas of responsibility. FDA officials said they plan to update the plan in 2021, which presents an opportunity for FDA to address areas of disagreement. In its current form, FDA's laboratory safety program also does not meet the key elements of effective oversight identified in GAO's prior work. For example, The oversight organization should have clear authority to ensure compliance with requirements. However, as part of a 2019 reorganization, FDA placed the OLS director at a lower level than the center directors. Also, OLS does not directly manage the center safety staff responsible for ensuring the implementation of safety policies that OLS develops. As a result, OLS has limited ability to access centers' laboratories—in part because they cannot inspect them unannounced—or to ensure compliance with safety policies. The oversight organization should also be independent from program offices to avoid conflict between program objectives and safety. However, OLS depends on the centers for much of its funding and has had to negotiate with the centers annually for those funds, which can allow center directors to influence OLS priorities through the funding amounts they approve. FDA has not assessed potential independence risks from using center funds for OLS. Without taking steps to do so, FDA's laboratory safety program will continue to compete with the centers' mission objectives and priorities. In 2014, FDA discovered improperly stored boxes of smallpox virus, posing a risk to individuals who might have been exposed. This raised concerns about the oversight of FDA's laboratories that conduct research on hazardous biological agents. In 2016, GAO made five recommendations to improve FDA's laboratory safety, four of which the Department of Health and Human Services (HHS) had not fully implemented as of July 2020. GAO was asked to examine FDA's efforts to strengthen laboratory safety. This report examines FDA's efforts since GAO's 2016 report to improve safety in its laboratories that work with hazardous biological agents. To conduct this work, GAO reviewed FDA documents; assessed FDA's safety oversight practices against key reform practices and oversight elements GAO identified in prior work; and interviewed FDA officials, including staff and senior leaders at OLS and the three centers that work with hazardous biological agents. GAO is making five recommendations to FDA, including to resolve disagreements over roles and responsibilities, to provide OLS with the authority and access to facilities necessary to oversee laboratory safety, and to take steps to assess and mitigate any independence risks posed by how OLS is funded. HHS agreed with all five recommendations. For more information, contact Mary Denigan-Macauley at (202) 512-7114 or firstname.lastname@example.org.[Read More…]
- Conflict Minerals: Actions Needed to Assess Progress Addressing Armed Groups’ Exploitation of MineralsBy Sam NewsSeptember 14, 2020The Securities and Exchange Commission (SEC) disclosure rule broadly requires that certain companies submit a filing that describes their efforts to conduct a reasonable country-of-origin inquiry (RCOI), and depending on the preliminary determination, perform due diligence to determine the source and chain of custody of their conflict minerals—gold and specific ores for tantalum, tin, and tungsten. After conducting RCOI, an estimated 50 percent of companies filing in 2019 reported preliminary determinations as to whether the conflict minerals came from the Democratic Republic of the Congo (DRC) or adjoining countries (covered countries) or from scrap or recycled sources. The percentage of companies able to make such preliminary determinations increased significantly between 2014 and 2015, and has since leveled off, as shown below. Source of Conflict Minerals in Products as Determined by Companies' Reasonable Country-of-Origin Inquiries, Reporting Years 2014-2019 However, fewer companies reported such determinations after conducting due diligence. In 2019, an estimated 85 percent of companies made preliminary determinations that required them to then perform due diligence. Of those companies, an estimated 17 percent determined that the minerals came from covered countries—a significantly lower percentage of companies making that determination than the 37 percent reported in 2017 or the 35 percent in 2018. Since 2014, companies have noted various challenges they face in making such determinations; however, SEC staff told GAO that they did not know what factors contributed to the decrease in 2019. We will examine this issue during our future review. While the Department of State (State) and U.S. Agency for International Development (USAID) have implemented the U.S. conflict minerals strategy since 2011, they have not established performance indicators for all of the strategic objectives. For example, they have no such indicators for the objectives of strengthening regional and international efforts and promoting due diligence and responsible trade through public outreach. Without performance indicators, the agencies cannot comprehensively assess their progress toward achieving these objectives or the overall goal of addressing armed groups' exploitation of conflict minerals. Armed groups in eastern DRC continue to commit severe human rights abuses and to profit from the exploitation of “conflict minerals,” according to State. Provisions in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act required, among other things, that State, USAID, and the SEC take certain actions to promote peace and security. In 2011, State created the U.S. conflict minerals strategy in consultation with USAID to address armed groups' exploitation of conflict minerals. In 2012, the SEC also promulgated regulations containing disclosure and reporting requirements for companies that use conflict minerals from covered countries. The act also included a provision for GAO to annually assess, among other things, the SEC regulations' effectiveness in promoting peace and security. In this report, GAO examines, among other things, how companies responded to the SEC conflict minerals disclosure rule when filing in 2019 and the extent to which State and USAID assessed progress toward the U.S. conflict minerals strategy's objectives and goal. GAO analyzed a generalizable sample of SEC filings, reviewed documents, and interviewed U.S. officials State, in consultation with USAID, should develop performance indicators for assessing progress toward the strategic objectives and goal of the U.S. conflict minerals strategy. State and USAID concurred with GAO's recommendation. For more information, contact Kimberly M. Gianopoulos at (202) 512-8612 or email@example.com.[Read More…]
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- Judiciary Seeks New Judgeships, Reaffirms Need for Enhanced SecurityBy Sam NewsIn U.S CourtsMarch 16, 2021The Judicial Conference of the United States, the Judiciary’s policy-making body, today addressed two of its most pressing issues – a proposal to add 79 new judgeships for courts across the country and initiatives to improve both personal and courthouse security.[Read More…]
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- Justice Department Releases $58 Million in Solicitations to Combat the Distribution of Illicit Drugs and Improve Officer WellnessBy Sam NewsApril 23, 2021The Justice Department announced today that the Office of Community Oriented Policing Services (COPS Office) has released approximately $58 million in three grant solicitations that will advance community policing, help combat the dual scourges of opioid and methamphetamine use, and promote the health and safety of our nation’s law enforcement officers.[Read More…]
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- Ph.D. Chemist Convicted of Conspiracy to Steal Trade Secrets, Economic Espionage, Theft of Trade Secrets and Wire FraudBy Sam NewsApril 22, 2021A federal jury in Greeneville, Tennessee, convicted a U.S. citizen today of conspiracy to steal trade secrets, economic espionage and wire fraud.[Read More…]
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- Covid-19 Housing Protections: Moratoriums Have Helped Limit Evictions, but Further Outreach Is NeededBy Sam NewsMarch 15, 2021What GAO Found Eviction moratoriums at the federal, state, and local levels reduced eviction filings during the COVID-19 pandemic; however, some eligible renters may not have benefitted from a recent federal moratorium. GAO's analysis of 63 jurisdictions found that the median rate of eviction filings was about 74 percent lower in the last week of July 2020—when a moratorium included in the CARES Act expired—than in the same week in 2019. Eviction filings remained lower throughout 2020 (relative to 2019) but gradually increased during a separate moratorium ordered by the Centers for Disease Control and Prevention (CDC) in September 2020 (see fig.). During this moratorium, jurisdictions without separate state or local moratoriums experienced larger increases in eviction filings, which suggests that some renters may not fully understand how to use the CDC moratorium (completing required documentation). CDC extended its moratorium through March 31, 2021, but has taken few steps to promote awareness and understanding of the moratorium and its requirements. Clear, accurate, and timely information is essential to keep the public informed during the pandemic. Without a communication and outreach plan, including federal coordination, CDC will be missing an opportunity to ensure that eligible renters avoid eviction. Year-over-Year Percentage Change in Eviction Filings in 63 Jurisdictions Note: Centers for Disease Control and Prevention's (CDC) moratorium is active through March 31, 2021. Local moratoriums include separate state or local eviction moratoriums. Unlike the CARES Act, CDC's moratorium does not prohibit eviction filings, which could explain some increases. By late January 2021, Treasury had disbursed 99 percent of the $25 billion in Emergency Rental Assistance funds to state and other eligible grantees responsible for making rent and utility payments to recipients. Treasury's initial program guidance issued that month did not fully define some program requirements and included requirements that could have delayed the delivery of funds or deter participation. In late February 2021, Treasury updated its guidance to address several of these concerns, such as by providing grantees with flexibility for prioritizing lower income applicants and allowing written attestation of income. Although the guidance did not clarify certain data collection and spending requirements, officials said they will continue to update guidance to address stakeholder concerns and strike a balance between accountability and administrative efficiency. GAO will continue to actively monitor these efforts. Why GAO Did This Study Millions of renters and property owners continue to experience housing instability and financial challenges during the COVID-19 pandemic. To address these concerns, Congress and CDC created eviction moratoriums, and Congress appropriated $25 billion to Treasury to disburse to state and local grantees to administer emergency rental assistance programs to help those behind on their rent. The CARES Act includes a provision for GAO to monitor federal efforts related to COVID-19. This report examines, among other objectives, (1) how eviction moratoriums have contributed to housing stability during the pandemic and (2) Treasury's implementation of the Emergency Rental Assistance program. GAO analyzed data on eviction filings and local policies in a sample of 63 jurisdictions (selected based on data availability) from January to December 2020. GAO also analyzed Census Bureau survey data on rental payments and data from federal housing entities on mortgage forbearance. GAO interviewed officials from CDC, Treasury, and organizations representing renters, property owners, and rental assistance grantees.[Read More…]
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- Justice Department, EPA and the State of Indiana Reach Clean Air Act Settlement with Lone Star IndustriesBy Sam NewsJune 3, 2021Lone Star Industries Inc, a subsidiary of Italian company Buzzi Unicem, has agreed to upgrade and optimize pollution control equipment and procedures at its cement manufacturing facility in Greencastle, Indiana, to resolve Clean Air Act (CAA) violations brought by the U.S. Environmental Protection Agency (EPA) and the State of Indiana Department of Environmental Management.[Read More…]
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- Vermont Man Charged with Hiring Person to Kidnap and Kill a Man in a Foreign Country, and Producing and Receiving Child PornographyBy Sam NewsSeptember 15, 2020A federal grand jury in the District of Vermont returned a third superseding indictment today against a Burlington man for conspiring to kidnap and kill a man in a foreign country, murder for hire, and five child pornography offenses.[Read More…]
- Statement of the Attorney General on the Announcement Of Civil Antitrust Lawsuit Filed Against GoogleBy Sam NewsOctober 20, 2020Attorney General William P. Barr released the following statement.[Read More…]
- Armenia Travel AdvisoryBy Sam NewsIn TravelSeptember 26, 2020Reconsider travel to [Read More…]
- Small Business Loans: SBA Generally Incorporated Key Elements for Estimating Subsidy Cost of 7(a) ProgramBy Sam NewsOctober 30, 2020The Small Business Administration (SBA) develops its subsidy cost estimates for the 7(a) loan guarantee program—that is, estimates of the program's net long-term cost to the government—using a cash flow model. The model uses historical data, econometric equations, and macroeconomic projections to estimate cash flows—such as guarantee fees, SBA purchases of defaulted loans, and recoveries on those loans—for the loans SBA expects to guarantee in the next fiscal year. The net present value of the cash flows (value in current dollars) is the subsidy cost estimate. SBA generally incorporated key elements of subsidy cost estimation into its estimates for the 7(a) program for the fiscal year 2020 budget. Specifically, GAO found that SBA's estimation process was largely consistent with eight key elements GAO previously identified that help ensure subsidy estimates are supported, reliable, and reasonable. For example, SBA generally validated historical data, documented the cash flow model and key assumptions, analyzed the sensitivity of estimates to alternative assumptions, and had documented policies and procedures. SBA made changes in its estimation process that collectively increased the 7(a) program's subsidy cost to $99 million for fiscal year 2020 (a 0.33 percent subsidy rate when expressed as the cost per dollar of credit assistance) from $0 for fiscal year 2019 (0 percent subsidy rate). Some of these changes were routine updates to data and economic assumptions used in the cash flow model, while others were revisions to the estimation process. Additionally, some individual changes increased the subsidy costs, while others decreased it. Some of the changes that had the largest impact on the subsidy rate included the following: Incorporating the President's economic assumptions for fiscal year 2020 decreased the rate by 0.27 percentage points. Updating the basis for the size and composition of the loan cohort SBA expected to guarantee in fiscal year 2020 increased the rate by 0.21 percentage points. Revising the methodology for estimating purchase amounts for defaulted loans to better reflect the outstanding loan balance at the time of purchase increased the rate by 0.21 percentage points. The 7(a) program is SBA's largest loan guarantee program for small businesses, with about $95 billion in outstanding loan principal as of the end of fiscal year 2019. Federal agencies that provide credit assistance are generally required to estimate the net long-term cost to the government—known as the subsidy cost—for each annual cohort of loans. SBA initially estimated a zero subsidy cost for each cohort from fiscal years 2014 through 2019, but estimated that the fiscal year 2020 cohort would have a positive subsidy cost and require appropriations. GAO was asked to evaluate SBA's subsidy estimation process for the 7(a) program. This report examines (1) how SBA estimates 7(a) subsidy costs, (2) the extent to which SBA incorporated key elements of subsidy cost estimation into its estimation process for the fiscal year 2020 budget, and (3) the changes SBA made in its estimation process for the fiscal year 2020 budget. GAO reviewed SBA documentation on its estimation process, including information on SBA's cash flow model, and compared SBA's process to key elements that GAO previously identified ( GAO-16-269 ). GAO also interviewed officials from SBA, the Office of Management and Budget, and outside auditors and contractors that annually review SBA's process and model. For more information, contact William B. Shear at (202) 512-8678 or firstname.lastname@example.org.[Read More…]
- Rule of Law Assistance: State and USAID Could Improve Monitoring EffortsBy Sam NewsNovember 9, 2020The Department of State (State) Bureau of International Narcotics and Law Enforcement Affairs (State/INL) and the U.S. Agency for International Development (USAID) provided sufficient documentation for GAO to conclude that they followed most key practices for monitoring rule of law assistance for the awards we reviewed from selected countries. However, the agencies did not provide sufficient documentation demonstrating that they followed other key practices. Overall, State/INL followed these practices in most cases and USAID did so in almost all cases. Specifically, GAO's review of 19 State/INL and USAID projects found that USAID in all cases, and State/INL in most cases, followed key practices for planning a monitoring approach, such as developing project goals, objectives, and performance indicators. However, State/INL did not consistently demonstrate that project representatives included project goals and objectives in monitoring plans, and did not consistently identify risks in those plans (see fig.). Furthermore, neither agency could demonstrate that project representatives consistently assessed and approved monitoring reports from implementing partners. Following key monitoring practices helps to ensure that agencies stay well-informed of project performance and take corrective action when necessary, and that projects achieve their intended results. Without complete documentation, management cannot be sure that these practices are being followed. State/INL and USAID Alignment with Key Practices for Monitoring Rule of Law Assistance State and USAID have various processes to conduct, share, and use rule of law project evaluations to improve future efforts. Both agencies disseminate evaluations through online systems, briefings, and presentations, and have established approaches to track the implementation of evaluation recommendations, such as through spreadsheets or other documentation. The agencies use these evaluations in various ways to inform project design and strategic planning. Rule of law strengthens protection of fundamental rights and serves as a foundation for democratic governance and economic growth. According to State, strengthening judicial and legal systems in certain countries is vital to U.S. national security interests. State and USAID allocated over $2.7 billion for rule of law assistance overseas from fiscal years 2014 through 2018. GAO was asked to review monitoring and evaluation of U.S. rule of law assistance around the world. This report examines, among other objectives, the extent to which the agencies followed key practices for monitoring rule of law projects in selected countries, and processes agencies have in place to use evaluations to inform future rule of law assistance. GAO analyzed relevant laws and agency policies and other documents, and interviewed officials in Washington, D.C., and four countries—Colombia, Kosovo, Liberia, and the Philippines—selected based on funding amounts and other factors. GAO recommends that State/INL establish procedures to ensure project goals, objectives, and risks are identified in monitoring plans. GAO also recommends that State/INL establish and USAID enhance procedures to ensure project staff assess and approve monitoring reports. State and USAID concurred with GAO's recommendations. For more information, contact Chelsa Kenney Gurkin at (202) 512-2964 or email@example.com.[Read More…]
- United States Joins Intergovernmental Forum on MiningBy Sam NewsJune 7, 2021
- Disaster Block Grants: Factors to Consider in Authorizing a Permanent ProgramBy Sam NewsMay 19, 2021What GAO Found In March 2019, GAO reported that because the Community Development Block Grant Disaster Recovery (CDBG-DR) program lacks permanent authority and regulations—unlike other disaster assistance programs—appropriations require the Department of Housing and Urban Development (HUD) to customize grant requirements for each disaster in Federal Register notices—a time-consuming process. GAO identified challenges associated with the lack of permanent statutory authority, including delays in disbursal of funds and the need for grantees to manage multiple grants with different rules. For example, GAO found it took HUD 5 months after the first appropriation for the 2017 hurricanes (Hurricanes Harvey, Irma, and Maria) for HUD to issue the first Federal Register notice establishing the grant requirements. Officials from one of the 2017 CDBG-DR grantees told GAO of challenges managing multiple CDBG-DR grants it received over the years because each grant had different rules. HUD officials noted then that permanently authorizing CDBG-DR would allow HUD to issue permanent regulations for disaster recovery. GAO identified factors to consider when weighing whether and how to permanently authorize a program for unmet disaster assistance needs. These factors, which are based on GAO's body of work on emergency management and past observations of broader government initiatives, include the following: Clarify how the program would fit into the broader federal disaster framework. GAO has emphasized the importance of articulating a program's relationship to other programs and of aligning the program within organizations with compatible missions and goals. This is particularly important with disaster programs, given the approximately 30 agencies involved in disaster recovery. Clarify the purpose and design the program to address it. Greater clarity about the purpose of CDBG-DR could help resolve implementation issues GAO has previously identified, such as how much time grantees should have to spend funds and the proportion of funds that should be distributed to renters. Consider the necessary capacity and support infrastructure to implement the program. GAO's prior work found that state, local, territorial, and tribal grantees and federal agencies faced capacity challenges in administering and overseeing federal grant funds, including CDBG-DR. Capacity challenges for grantees may contribute to fraud risks and slow expenditure of funds. Why GAO Did This Study Legislation proposed over the years would permanently authorize CDBG-DR or a similar program, but no proposal has been enacted. Since 1993, Congress has provided over $90 billion in supplemental appropriations through HUD's CDBG program to help communities recover from disasters. Just since 2001, HUD has issued over 100 Federal Register notices linked to these funds. Communities use these funds to address unmet needs for housing, infrastructure, and economic revitalization. HUD is one of approximately 30 federal agencies tasked with disaster recovery. This testimony discusses (1) challenges associated with the lack of permanent statutory authority for CDBG-DR and (2) factors to consider when weighing whether and how to permanently authorize CDBG-DR or a similar program. It is based primarily on GAO's March 2019 and May 2021 reports on CDBG-DR (GAO-19-232 and GAO-21-177) and GAO reports issued between February 2004 and June 2019 that identified factors to consider in making critical federal policy decisions. For those reports, GAO reviewed documentation on CDBG-DR and its observations of efforts to reorganize or streamline government, among other things.[Read More…]
- Assistant Attorney General Makan Delrahim Announces Re-Organization of the Antitrust Division’s Civil Enforcement ProgramBy Sam NewsAugust 20, 2020The Department of Justice’s Antitrust Division announced today that it is creating the Office of Decree Enforcement and Compliance and a Civil Conduct Task Force. Additionally, it will redistribute matters among its six civil sections in order to build expertise based on current trends in the economy.[Read More…]