The department’s internal watchdog found that, of the $2.7 billion set aside for the program, state and local governments have let $879 million go unsused.
The report said less than $1.4 billion of the $2.7 billion allocated for the Energy Efficiency and Conservation Block Grants program has been spent as of last month.
“These issues undermine one of the basic premises of the Recovery Act, that is, to promptly stimulate the economy and create jobs,” the report said.
The inspector general recommended the Energy Department return unused funds to the Treasury.
Click here to read the full report.