Inspectors General Provide a Better Return on Investment to Taxpayers, President Trump’s Firings of Independent Watchdogs Has Chilling Effect on Oversight
WASHINGTON, D.C. —U.S. Senator Gary Peters (D-MI), Ranking Member of the Senate Homeland Security and Governmental Affairs Committee, released a report detailing the Trump Administration’s unprecedented attacks on Inspectors General – the independent watchdogs tasked with rooting out waste, fraud, and abuse in federal agencies. Peters’ report finds that the 19 Inspectors General (IGs) President Trump fired earlier this year identified billions of dollars more in potential savings to taxpayers than the Department of Government Efficiency (DOGE) created by the Trump Administration and Elon Musk with the supposed goal of identifying wasteful spending.
“This report underscores the value of professional, independent and nonpartisan Inspectors General and the work they do to effectively identify waste, fraud and abuse of taxpayer dollars,” said Senator Peters. “If the Trump Administration were serious about eliminating waste, it would rely on the proven track record of independent Inspectors General. Instead, President Trump’s decision to fire them will not only undermine efforts to reduce waste – it sends a message of intimidation to anyone who wants to hold this Administration accountable.”
Inspectors General play a critical role in ensuring transparency and accountability in government operations. The report documents how, in his first week in office, President Trump fired 18 Inspectors General across major federal agencies, including the Departments of Defense, State, Commerce, and Veterans Affairs. The Administration later removed the USAID Inspector General, an act widely seen as retaliatory for conducting oversight of the Administration’s actions to shutter the agency. These terminations violated the Inspector General Act, which requires the President to provide Congress with a 30-day notice and a detailed justification before dismissing an IG.
The report finds that the fired IGs had a collective monetary impact of over $50 billion in fiscal year 2024 alone through investigations and audits, uncovering significant fraud and abuse. To date, the Offices of Inspectors General (OIGs) have pinpointed $175 billion in potential savings that could be achieved if federal agencies implement all of their outstanding recommendations.
These watchdogs have also conducted criminal investigations that resulted in financial recoveries, including a Department of Energy OIG probe that halted an illegal semiconductor export scheme, which led to the cancellation of $100 million in grants. Similarly, an investigation by the Department of Defense OIG uncovered fraudulent financial practices targeting Gold Star families, leading to a 12-year prison sentence and a $1.4 million penalty.
The impact of the Administration’s actions has been deeply felt across federal oversight agencies, as staffing cuts further compromise their ability to conduct audits, evaluations, and investigations. Interviews with affected IG offices revealed serious concerns about the erosion of independence and morale within these agencies.
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