GAO Rules HHS Unlawfully Withheld AHRQ Funding
The Government Accountability Office determined that HHS illegally impounded nearly $80 million appropriated to AHRQ for fiscal year 2025. The finding supports advocates who argued the administration violated the Impoundment Control Act by failing to release funds. The ruling applies only to FY25, but advocates see it as a precedent for restoring the agency and challenging similar withholding.
In September 2025, Reps. Diana DeGette and Doris Matsui asked GAO to examine whether HHS had improperly withheld AHRQ money. GAO, the sole federal body empowered to decide impoundment disputes, issued its decision on October 7. It concluded that HHS violated the 1974 Impoundment Control Act by not obligating almost $80 million for FY25.
The decision covers only FY25; FY26 funds also remain unspent. Advocates, including FABBS through Friends of AHRQ, had argued the administration's position was unlawful. If HHS does not correct the issue, GAO's Comptroller General may pursue civil action.
The ruling may strengthen legal arguments for groups seeking to restart AHRQ's work. Researchers, clinicians, and patients who rely on its health services research could be affected if funding remains frozen or if operations resume. It may also influence how Congress and agencies handle future withheld appropriations, though the FY25-only scope limits immediate reach.