Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

CARES Act Puts Inspectors General Back in the Spotlight

By Daniel R. Alonso, Preston Burton and Meredith Leeson
June 01, 2020

Federal Inspectors General — the nation's watchdogs over government agencies and government programs — are back in the news. First, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, received close attention not only for its $2 trillion infusion of taxpayer dollars into the U.S. economy, but also for its oversight mechanisms. The CARES Act established both a Special Inspector General for Pandemic Recovery (SIGPR) and a Pandemic Response Accountability Committee (PRAC), comprised exclusively of existing IGs. Soon after the Act passed, President Donald Trump put IGs in the headlines again, first by firing Michael Atkinson, the IG for the Intelligence Community, and then by removing Glenn Fine, acting IG of the Defense Department, from his post. Fine had just been appointed to chair the PRAC.

IGs have been part of the federal landscape for more than 40 years, so why all the fuss now? The answer is that they are a key element of the government's built-in mechanisms for protecting the nation's fisc, and a relief package of this scope strongly indicates that the IGs and the new oversight bodies will spend many years scrutinizing funds spent under it. Consequently, participating small, medium, and large businesses that have not previously interacted much with government agencies or programs, including lenders new to government-backed loans, can avoid unnecessary disruption by familiarizing themselves with what IGs do and how they work.

IG Establishment

The modern federal IG system was born with the Inspector General Act of 1978 (IG Act), which emphasized the need for "independent and objective [government] units" within federal agencies to root out waste, fraud, and abuse. Their central function is: 1) to conduct audits and investigations of programs and agencies; 2) to recommend policies to promote efficiency and effectiveness, as well as deter fraud and abuse; and 3) to inform agency heads and Congress about identified problems or deficiencies.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.