**GAO-10-761T**                      Published: May 26, 2010. Publicly Released: May 26, 2010.                  

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## Highlights

The American Recovery and Reinvestment Act of 2009 (Recovery Act) included $4 billion for the Environmental Protection Agency's (EPA) Clean Water State Revolving Fund (SRF). This testimony--based on GAO's report GAO-10-604, issued on May 26, 2010, in response to a mandate under the Recovery Act--addresses (1) state efforts to meet requirements associated with the Recovery Act and SRF program, (2) the uses of Recovery Act funds, and (3) EPA's and states' efforts to oversee the use of these funds. GAO's review of the Clean Water SRF program focused on 14 states and selected localities--known as subrecipients--in each of these states. These 14 states received approximately 50 percent of the total appropriated under the Recovery Act for the Clean Water SRF. GAO obtained data from EPA and the 14 states, including the amounts and types of financial assistance each SRF program provided, which subrecipients were first-time recipients of Clean Water SRF funding, and which projects serve disadvantaged communities.

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## Topics

Natural Resources and Environment

AccountabilityAppropriated fundsAppropriationsAuditing standardsBudget obligationsBudget outlaysConstruction grantsData collectionDocumentationEconomic assistanceEducational grantsEligibility criteriaEnvironmental protectionFederal aid for highwaysFederal aid for housingFederal aid for transportationFederal aid programsFederal aid to localitiesFederal aid to statesFederal fundsFederal grantsstate relationsFinancial managementFund auditsFunds managementGovernment grantsGrant administrationGrant monitoringGrants to local governmentsGrants to statesHigher educationHousing programsIntergovernmental relationsInternal controlsInvestmentsLocally administered programsMedicaidMonitoringMunicipal governmentsPerformance measuresPrioritizingProgram evaluationProgram managementPublic housingRehabilitation programsReporting requirementsReports managementRisk assessmentSpending legislationState programsState-administered programslocal relationsStrategic planningUse of fundsYouth employment programsPolicies and proceduresProgram implementation