Department of Transportation

The Department of Transportation (DOT) prioritizes payment integrity and recognizes the importance of maintaining effective internal controls to ensure accurate payments. Protecting DOT's assets and resources is essential for promoting safety, efficiency, and innovation, which are the foundations of a new golden age of transportation. DOT is reporting a Fiscal Year (FY) 2025 payment accuracy rate of 96.42%. For FY 2025 phase 2 programs, the Federal Highway Administration’s (FHWA) Highway Planning and Construction achieved a payment accuracy rate of 96.14% and the Federal Transit Administration’s Transit Infrastructure Grant – Coronavirus Disease of 2019 (COVID) Relief Funds achieved a rate of 99.74%. Common characteristics of DOT’s programs susceptible to significant improper payments (IPs) are that both programs are administered by grant recipients, typically State DOT or local transit authority, and that IPs are outside of our control when the grant recipients make administrative errors. Whereas grant recipients are responsible for the administration of federal assistance, DOT is responsible, primarily through its division and regional offices, for ensuring compliance with Federal requirements and proper use of Federal funds.

The IP sampling and estimation process is an example of one method DOT utilizes to assess grant recipient compliance with Federal requirements and to identify emerging causes of payment integrity risk. During FY 2025, DOT’s Inspector General (OIG) concluded that our FY 2024 reports were compliant with Payment Integrity Information Act of 2019 (PIIA) requirements as prescribed by the Office of Management and Budget (OMB). The OIG will issue a report in FY 2026 with a determination on whether DOT’s FY 2025 reports were compliant with PIIA requirements. Training and maintaining strong partnerships with our grant recipients are essential to reducing DOT’s improper payments over time. DOT Operating Administrations work with grant recipients to: improve project documentation, contractual adherence, adherence of Federal regulation requirements, invoice verification, payment processes, and address training deficiencies as applicable foreach IP. While robust, the internal control systems and structures of our grant recipients across the Nation must constantly evolve to meet changing Federal statutory and regulatory requirements. Hence, continued collaboration and communication between DOT and our State and Local partners is a necessity to ensure compliance with Federal requirements including the accuracy of payment requests.

DOT’s Payment Integrity Center is responsible for coordinating improper payment reviews, reporting results, and monitoring the progress of corrective actions in accordance with PIIA, OMB Circular No. A-123 Appendix C, Requirements for Payment Integrity Improvement, and OMB Circular No. A-136, Financial Reporting Requirements. The Integrity Center’s trend analysis of overall disbursements by Treasury code and monitoring of DOT spending reports identifies and validates new, as well as significant payment changes to existing programs. Annually, the Integrity Center performs a Department-wide payment analysis based on monthly Treasury statements (MTS). The Integrity Center also monitors spending reports available to the public on DOT’s webpage. Two publicly available reports include the: USDOT COVID-19 Relief Funding and Infrastructure Investment and Jobs Act (IIJA) Funding Status report. In addition to monitoring program spending and estimating IPs for 2 programs, the Department: performed 4 IP risk assessments, conducted a payment recovery audit, monitored the progress of corrective actions, analyzed confirmed fraud cases, and screened payments against the Do Not Pay databases. DOT phase 1 programs must perform an IP risk assessment at a minimum once every three years unless there is a significant program or funding change. For FY 2026, the DOT Payment Integrity Center plans to perform annual requirements, monitor implementation of corrective actions developed in FY 2025, and report IP estimates for FHWA programs that continue to be susceptible to significant improper payments. We take pride in our payment integrity efforts and remain committed to strengthening our payment processing controls going forward.

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Agency level Payment Integrity results

  • Payment accuracy rate

    (Based on federal funding spent by programs determined by agencies as susceptible to improper payments)

  • Improper payments rate

    (Based on federal funding spent by programs determined by agencies as susceptible to improper payments)

  • Unknown payments rate

    (Based on federal funding spent by programs determined by agencies as susceptible to improper payments)

  • Department of Transportation improper payment estimates over time
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    Chart toggle amounts:
    Proper payments
    Overpayment
    Underpayment
    Technically improper
    Unknown

Recovery information

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Chart toggle amounts:
Overpayment amount identified for recapture
Overpayment amount recovered

Recovery of overpayments

Please note: Overpayment amounts recovered are reported in the year they were recovered, not the year they were identified. Therefore it is possible in some years to have a recovery rate greater than 100%.

Overpayment amount identified through recovery audits $22.51 M
Overpayment amount recovered through recovery audits $22.49 M
Recovery audit recovery rate 99.89 %

Conditions giving rise to improper payments identified in recovery audits, how those conditions are being resolved, and the methods used to recover those payments

Federal personnel within DOT’s Payment Integrity Center performed the recovery audit focusing on DOT payments made between April 2024 through March 2025. DOT considers all overpayments identified through the fiscal year 2025 audit to be recoverable. The Enterprise Service Center (ESC), DOT’s service provider, typically recoups overpayments resulting from DOT errors directly from the payee, by offsetting payee’s future payment, or by submitting a debt to the Department of Treasury's Offset Program. In most cases, ESC can recover overpayments directly from the payees.

In fiscal year 2025, recaptured overpayments resulting from DOT errors were returned to the program or activity’s original purpose. A majority of DOT funds are available until expended enabling the Department return recovered funds to the original purpose.
Recovery audit amount identified this reporting period that remains outstanding $0.03 M
Recovery audit amount rate outstanding 0.11 %
Recovery audit amount this reporting period that remains outstanding for 0-6 months $0.03 M
Recovery audit amount identified this reporting period that remains outstanding for 6 months to 1 year $0.0 M
Recovery audit amount identified in this reporting period determined not collectible during this reporting period $0.0 M
Recovery audit rate identified in this reporting period determined not collectible during this reporting period 0 %

Intentional monetary loss improper payments are more commonly referred to as financial fraud and are overpayments that occur on purpose. This agency reported $0M of confirmed fraud in this reporting cycle.

Supplemental Information

An important part of the Department’s program integrity efforts is integrating Treasury Department’s Do Not Pay (DNP) Business Center into our existing processes. DOT utilizes the DNP Business Center to perform online searches, screen payments against the DNP databases, and augment DOT’s Payment Integrity Center capabilities. DNP specifically helps the Department prevent improper payments by matching all payments against death data sources daily. In addition, we expanded our DNP online search capabilities during FY 2024 to all available data sources. Several DOT program managers reached out to search grant recipients against DNP data sources as another layer of verification and validation.

For FY 2025, DNP identified 33 DOT payments that matched against the death data sources amounting to approximately $25,050.92. After due diligence, the Department identified 2 out of 33 DOT matches to be improper. The 2 payments were to a single recipient for a total of $502.98. Even though majority of FY 2025 matches were proper payments, the information enabled DOT staff to take proactive measures and reduce repeat occurrences. Overall, the Department has neither identified a material amount nor realized a material reduction of improper payments attributable to our evolving DNP capabilities. Our DNP implementation has proven, however, that DOT has robust and effective internal controls over ensuring that eligible entities receive Federal funds.

The Working System has reduced/prevented improper payments:

DOT has not identitied incorrect information in the Working System.

DOT was found compliant during the most recent PIIA compliance review.

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Compliant programs:

  • Aviation Research Grants
  • Behavioral Traffic Safety Cooperative Research
  • Bridge and Other Transportation Infrastructure Research Program
  • Capital Construction Fund
  • Construction Reserve Fund
  • Driver Alcohol Detection System for Safety
  • Federal Aviation Administration Airport Concessionaire Relief
  • Federal Aviation Administration Airport Response Grant Program
  • Federal Aviation Administration Facilities and Equipment
  • Federal Aviation Administration Franchise Fund
  • Federal Aviation Administration Grants-in-Aid for Airports
  • Federal Aviation Administration Operations
  • Federal Aviation Administration Research, Engineering and Development
  • Federal Highway Administration Highway Planning and Construction
  • Federal Highway Administration Other Grant Programs and Cooperative Agreements
  • Federal Highway Administration Research Programs
  • Federal Highway Administration Salaries and Expenses
  • Federal Motor Carrier Safety Administration Motor Carrier Safety Grants
  • Federal Motor Carrier Safety Administration Operations and Programs
  • Federal Railroad Administration Grants to National Railroad Passenger Corporation
  • Federal Railroad Administration High-Speed Intercity Passenger Rail
  • Federal Railroad Administration Other Grant Programs
  • Federal Railroad Administration Railroad Research and Development
  • Federal Railroad Administration Safety and Operations
  • Federal Transit Administration Administrative Expenses
  • Federal Transit Administration Capital Investment Grants
  • Federal Transit Administration Emergency Relief Program
  • Federal Transit Administration Formula Grants
  • Federal Transit Administration Transit Infrastructure Grants
  • Federal Transit Administration Transit Infrastructure Grants - COVID Relief Funds
  • Federal Transit Administration Washington Metro
  • Fueling Aviation's Sustainable Transition via Sustainable Aviation Fuels (FAST-SAF) and Low-Emissions Aviation Technologies (FAST-Tech) Grant
  • Maritime Administration Approval Workflow Contract Payments
  • Maritime Administration Assistance Programs
  • Maritime Administration Electronic Invoicing System Ship Manager Payments
  • Maritime Administration Federal Ship Financing Program Contracts
  • Maritime Administration Personnel Compensation and Benefits
  • Maritime Administration Port Infrastructure Development
  • Maritime Administration Student Incentive Program
  • Maritime War Risk Insurance
  • Motor Vehicle Safety Research
  • National Driver Register
  • National Highway Traffic Safety Administration
  • National Highway Traffic Safety Administration Highway Traffic Safety Grants
  • Office of Inspector General Salaries and Expenses
  • Office of the Secretary Aviation Manufacturing Jobs Protection Program
  • Office of the Secretary Grant Programs
  • Office of the Secretary Grant Programs - Allocation and Administered Accounts
  • Office of the Secretary Loan Programs
  • Office of the Secretary Salaries and Expenses
  • Pipeline and Hazardous Materials Safety Administration Payments
  • Railroad Safety
  • State Electronic Data Collection (SEDC) Program Grant
  • State Process for Informing Consumers of Recalls
  • Transportation Planning, Research and Education
  • Transportation Research and Technology Advancement
  • Veterans Pilot Training Program

Program name When was the last improper payment risk assessment conducted? Likely to be susceptible to significant improper payments? Substantial changes made to the assessment methodology used for the reporting cycle
Aviation Research Grants *
Behavioral Traffic Safety Cooperative Research *
Bridge and Other Transportation Infrastructure Research Program *
Capital Construction Fund *
Construction Reserve Fund *
Driver Alcohol Detection System for Safety *
Federal Aviation Administration Airport Concessionaire Relief 2022 No No
Federal Aviation Administration Airport Response Grant Program 2023 No No
Federal Aviation Administration Facilities and Equipment 2023 No No
Federal Aviation Administration Franchise Fund 2023 No No
Federal Aviation Administration Grants-in-Aid for Airports 2025 No No
Federal Aviation Administration Operations 2023 No No
Federal Aviation Administration Research, Engineering and Development 2023 No No
Federal Highway Administration Highway Planning and Construction 2025 No Yes
Federal Highway Administration Other Grant Programs and Cooperative Agreements 2023 No No
Federal Highway Administration Research Programs 2023 No No
Federal Highway Administration Salaries and Expenses 2023 No No
Federal Motor Carrier Safety Administration Motor Carrier Safety Grants 2023 No No
Federal Motor Carrier Safety Administration Operations and Programs 2023 No No
Federal Railroad Administration Grants to National Railroad Passenger Corporation 2025 No No
Federal Railroad Administration High-Speed Intercity Passenger Rail 2023 No No
Federal Railroad Administration Other Grant Programs 2023 No No
Federal Railroad Administration Railroad Research and Development 2023 No No
Federal Railroad Administration Safety and Operations 2023 No No
Federal Transit Administration Administrative Expenses 2023 No No
Federal Transit Administration Capital Investment Grants 2023 No No
Federal Transit Administration Emergency Relief Program 2024 No No
Federal Transit Administration Formula Grants 2025 No No
Federal Transit Administration Transit Infrastructure Grants 2023 No No
Federal Transit Administration Transit Infrastructure Grants - COVID Relief Funds 2025 No No
Federal Transit Administration Washington Metro 2025 No No
Fueling Aviation's Sustainable Transition via Sustainable Aviation Fuels (FAST-SAF) and Low-Emissions Aviation Technologies (FAST-Tech) Grant *
Maritime Administration Approval Workflow Contract Payments 2023 No No
Maritime Administration Assistance Programs 2023 No No
Maritime Administration Electronic Invoicing System Ship Manager Payments 2023 No No
Maritime Administration Federal Ship Financing Program Contracts 2023 No No
Maritime Administration Personnel Compensation and Benefits 2023 No No
Maritime Administration Port Infrastructure Development 2023 No No
Maritime Administration Student Incentive Program 2023 No No
Maritime War Risk Insurance *
Motor Vehicle Safety Research *
National Driver Register *
National Highway Traffic Safety Administration 2023 No No
National Highway Traffic Safety Administration Highway Traffic Safety Grants 2023 No No
Office of Inspector General Salaries and Expenses 2023 No No
Office of the Secretary Aviation Manufacturing Jobs Protection Program 2022 No No
Office of the Secretary Grant Programs 2023 No No
Office of the Secretary Grant Programs - Allocation and Administered Accounts 2023 No No
Office of the Secretary Loan Programs 2023 No No
Office of the Secretary Salaries and Expenses 2023 No No
Pipeline and Hazardous Materials Safety Administration Payments 2023 No No
Railroad Safety *
State Electronic Data Collection (SEDC) Program Grant *
State Process for Informing Consumers of Recalls *
Transportation Planning, Research and Education *
Transportation Research and Technology Advancement *
Veterans Pilot Training Program *

* Assessment year is not displayed because one or more of the following statements is true:

  1. Not required to conduct a risk assessment under the Payment Integrity Information Act of 2019,
  2. Already assessed for improper payment risk under a different name in a prior reporting period, and/or
  3. New and planning to perform a risk assessment in the future.

DOT’s Inspector General concluded that the agency was compliant with PIIA requirements as prescribed by OMB in the FY 2024 audit and did not make any recommendations. In addition, the OIG will issue a report in FY 2026 with a determination on whether DOT was compliant with PIIA requirements in FY 2025.