Get 40% Off
💰 Warren Buffett reveals a $6.72 billion stake in ChubbCopy Portfolios

Exclusive-Tech woes will delay around $3 billion in U.S. Justice Dept grants -documents

Published 09/09/2021, 11:21 AM
Updated 09/09/2021, 04:11 PM
© Reuters. FILE PHOTO: The seal of the United States Department of Justice is seen on the building exterior of the United States Attorney's Office of the Southern District of New York in Manhattan, New York City, U.S., August 17, 2020. REUTERS/Andrew Kelly
GD
-

By Sarah N. Lynch

WASHINGTON (Reuters) -Technological glitches will cause the U.S. Justice Department to be late in paying out around $3 billion in grants that fund programs such as victims services and criminal justice research, according to internal documents seen by Reuters.

The problems with the grant management system known as JustGrants https://www.reuters.com/world/us/us-47-billion-grant-programs-tech-woes-take-toll-justice-groups-2021-07-12 are delaying more than half of the criminal justice grants to municipalities, states, research institutions and nonprofits that the department would normally award by the end of the fiscal year on Sept. 30.

The documents reveal ongoing woes in the administration of its $4.7 billion grant program first reported by Reuters in July that led the top Republican on the Senate Judiciary Committee, Charles Grassley, to call for a probe https://www.reuters.com/world/us/top-us-senator-demands-inquiry-into-justice-dept-grants-system-2021-07-21 of the program. The Justice Department's inspector general, Michael Horowitz, later said his office would audit https://www.reuters.com/world/us/us-justice-dept-watchdog-launches-audit-into-troubled-grants-system-2021-08-04 the $115 million contract with General Dynamics Corp (NYSE:GD) to build JustGrants.

The Justice Department said in internal planning records that it will be forced to give out the money on a rolling basis, and will only aim to award about $1.4 billion by Sept. 30. The bulk of that money entails grants designated to help victims of crime.

Another roughly $560 million will be awarded by Oct. 31 and the rest of the funds, more than $2.5 billion, are targeted to be awarded by Dec. 31, according to the draft documents.

The internal planning documents are still in the draft stage, and the total amounts could still change.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"We deeply regret that there may be delays and understand how important it is to get all grant awards processed as quickly as possible," wrote Amy Solomon, the acting assistant attorney general for the Office of Justice Programs, in a notice sent to staff after Reuters reported on the delays.

"I know that you are all doing everything you can to ensure that grantees receive awards as quickly as possible so that we can get these critical resources to the field and our stakeholders can continue the essential work of protecting communities, serving victims, and supporting a justice system that is just, fair, and effective."

The Justice Department is expected to formally notify lawmakers and grantees about the delays in funding in the near future.

A Justice Department spokesman had no immediate comment.

The JustGrants system has been plagued with glitches since its October 2020 launch, making it hard for grantees to file applications or upload crucial financial reports required in order to get their funding.

Reuters in July reported that some grant recipients had faced monthslong delays accessing their awards due to problems with JustGrants, prompting multiple complaints to Congress and the Justice Department's inspector general.

When the inspector general announced the audit of the General Dynamics contract, a spokesman for the company said it was working with the department "to deliver a modernized JustGrants system" and the work was being completed "in line with the implementation roadmap and schedule" laid out by the Justice Department.

The Justice Department awards some $4.7 billion in grants each year to help fund everything from body-worn cameras for police to transitional housing for victims of domestic violence and human trafficking victims.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Critics say the problems with JustGrants could hinder President Joe Biden's efforts to persuade Congress to appropriate hundreds of millions of dollars in new funding for additional Justice Department grant programs, including $300 million to help law enforcement hire more police officers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.