DOE failing to oversee $21B in clean energy projects — audit

By Christa Marshall | 02/12/2026 07:04 AM EST

The Government Accountability Office said the department is not adequately managing funds tied to demonstration projects.

The Department of Energy headquarters sign is seen in Washington.

The Department of Energy headquarters in Washington. Francis Chung/POLITICO

The Department of Energy needs to ensure it is following the law in overseeing large clean energy projects that were appropriated billions of dollars by Congress, according to a new audit.

The Government Accountability Office said Wednesday that DOE is not adequately managing funds that were under the purview of the Office of Clean Energy Demonstrations, which was created after the 2021 bipartisan infrastructure law. DOE is required to have a plan for handling funding despite project cancellations, nixed appropriations and the departure of most of OCED’s staff last year, the congressional watchdog said.

In addition “to being unable to fulfill its statutory obligations, DOE faces an increased risk of project mismanagement,” GAO said in the audit, which was conducted from December 2024 to February 2026.

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Even if DOE shuts down OCED entirely or terminates additional projects, it is “required to have a program” in place, GAO said.

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