# GAO Finds HHS Withheld AHRQ Grant Funds

The Government Accountability Office (GAO) concluded that the Department of Health and Human Services (HHS) violated the Impoundment Control Act by withholding more than $78 million in fiscal year 2025 Agency for Healthcare Research and Quality (AHRQ) grant funds without sending Congress a special message. GAO said AHRQ could allocate its lump-sum appropriation among authorized purposes, but could not leave funds unobligated rather than use them for other permissible purposes. AHRQ issued no grants from April 1 through September 5, 2025, compared with as many as 73 in a comparable period. A separate fiscal year 2026 proposal would rescind $28 million of AHRQ’s $345 million appropriation; litigation over grant delays and funding continues.

- The decision creates no new contractor certification, reporting, or bidding requirement. It is directly relevant to current and prospective AHRQ grantees and contractors supporting AHRQ research because funding availability and award timing may be affected.
- AHRQ applicants and existing grantees can use the GAO finding to understand the statutory constraints on withholding appropriated funds; the separate FY2026 rescission remains a proposal, not a completed funding action.
- Organizations affected by delayed AHRQ grants should review agency funding notices and court developments, as the signals identify these as factors that could affect grant availability and awards.

**Jurisdictions:** federal
**Industries:** Healthcare, Environment
**Topics:** Grants & Funding, Regulatory Compliance
**Published:** October 08, 2026

### Government Entities
- Government Accountability Office (GAO)
- Department of Health and Human Services (HHS)
- Agency for Healthcare Research and Quality (AHRQ)
- Environmental Protection Agency (EPA)
- U.S. Congress (Congress)

### Key Quotes
> The agency had disbursed less than 60% of its fiscal 2025 year funds, with more than $78 million unawarded, GAO found.
> — Original poster

### Sources
- [B337872, Department of Health and Human Services—Agency for Healthcare Research and Quality—Application of Impoundment Control Act to the Availability of Funds for Grants](https://www.gao.gov/assets/900/890779.pdf) - Degette
- [Congress’ Watchdog Finds Trump Illegally Withheld More Than $1 Billion in Federal Funds](https://www.reddit.com/r/fednews/comments/1x08x6f/congress_watchdog_finds_trump_illegally_withheld) - reddit-fednews
- [
	Beyer, DeGette, Matsui Statement on Illegal Impoundment of Health Research Funds | U.S. Representative Don Beyer
](https://beyer.house.gov/news/documentsingle.aspx?DocumentID=9238) - Beyer