Lugar Claims USDA Misspent Funds

June 29, 2000

Senate Agriculture Committee Chairman Richard Lugar (R-IN) wants USDA to explain why funds that were designated for soil erosion prevention were spent on non-related items such as wall murals. In a new report to Congress, the USDA Office of Inspector General found that "over $20 million in USDA funds were improperly expended or obligated for the URP (Urban Resources Partnership) program during fiscal years 1994 through 1998."

The Inspector General reported that USDA initiated URP "without specific statutory authority, appropriated funds, or issuance of regulations." USDA has "over-stepped its bounds by spending soil erosion funds in a way that takes resources away from preserving our soil," said Lugar. "Congress appropriated these funds for soil and water conservation initiatives related to soil erosion, not for painting murals onto walls."

Established by USDA in 1994, the Urban Resource Partnership provides federal funds to help community-based environmental projects in 13 cities. The IG report found that USDA did not follow the normal process in initiating the URP program – regulations were not printed in the Federal Register, cities were not selected on a competitive basis, and controls were not established to ensure that funds were utilized properly.

The report identified 131 awards, totaling $3.4 million, that "did not meet the intended purposes."

In a letter to James Lyons, under secretary for natural resources and environment at USDA, Lugar expressed his concerns about these misspent funds and demanded that the agency identify by category funds spent by the Natural Resources Conservation Service (NRCS) in FY 1994-1998. He also asked that the agency provide a separate list of expenditures on projects not related to soil erosion.