Lawmakers: DOJ is stalling in oversight of millions in improperly approved funds

Lawmakers say they have not heard back from the U.S. Department of Justice as they work to ensure that tens of millions in improperly approved taxpayer dollars stay in the right hands.

The issue began when the American Rescue Plan was signed into law by President Joe Biden in 2021. That law created the Special Financial Assistance program, which lawmakers say mismanaged more than $100 million in taxpayer money.

In particular, the SFA helped bail out the the federal Pension Benefits Guaranty Corporation (PBGC), which insures private pension plans for more than 30 million Americans.

Now, PBGC is under congressional investigation after an Inspector General report found that PGBC signed off on over $127 million in overpayments for nearly 3,500 deceased people.

U.S. Rep. and Education and the Workforce Committee Chairwoman Virginia Foxx, R-N.C., and Health, Employment, Labor, and Pensions Subcommittee Chair Bob Good, R-Va, sent a letter to Attorney General Merrick Garland demanding answers about what they will do to make sure the money ends up in the right place.

“On April 8, 2024, DOJ announced it had entered into a civil settlement agreement to receive repayment of these funds from Central States,” the letter said. “One other plan, the Graphic Communications National Pension Fund (NPF), also agreed to repay $8 million of improper SFA it received on behalf of deceased participants. However, PBGC has not reported repayment from more than 60 other plans that received similar improper payments. We are concerned that none of these other plans have restored the improper payments.”

As The Center Square previously reported, after the initial IG report, PGBC blamed poor Census data for the problems and has promised to increase cross-checking with Social Security's death database.

Foxx said her committee reached out to the DOJ four months ago but has not received a response.

With Republicans retaining the majority in the new Congress, this investigation is likely not going away.

The DOJ did not respond to a request for comment in time for publication.

“DOJ’s failure to respond to our inquiry is frustrating the Committee’s ability to fulfill its investigative and legislative duties on this matter,” the letter said.