Department of Justice (DOJ) Deputy Inspector General Performing the Duties of the Inspector General William M. Blier announced today the release of a report on the Federal Bureau of Prisons’ (BOP) use of First Step Act (FSA) funding and the implementation of FSA programs at its institutions.
The DOJ Office of the Inspector General (OIG) assessed the BOP’s use of $1.23 billion in FSA funds appropriated by Congress, most of which was used to implement FSA programs benefiting inmates at BOP-operated institutions between fiscal years (FY) 2022 and 2024. The FSA requires the BOP to expand reentry programs for federal inmates and tailor them to address the specific risks that increase the likelihood of recidivism.
In today’s report, the OIG identifies several significant deficiencies in the BOP’s use of FSA funds and implementation of FSA programs, including:
- The BOP Used More Than $250 Million in FSA Funds to Pay for Inmate Telephone Calls Without Clear Authority to Do So, and Reimbursed Itself Over $100 Million More Than the Cost of the Telephone Service. The FSA allows the BOP to offer inmates expanded access to the telephone as an incentive for their participation in FSA programs. We found that the BOP used approximately $258 million in FSA funds to reimburse itself for providing inmates with free calls without clear authority to do so. This amount included approximately $106 million that the BOP reimbursed itself in excess of the cost that the BOP calculated it had incurred for providing the telephone service to the inmates. We also found that the BOP made these telephone benefits available to all inmates rather than using them only as an incentive for inmates who participate in FSA programs.
- The BOP Transferred Nearly $120 Million in FSA Funds to the U.S. Department of Labor to Implement a Joint Grant Program, but the BOP Maintained Limited Oversight of the Program. During FYs 2022 and 2023, the BOP transferred nearly $120 million to the U.S. Department of Labor (DOL) to implement a joint grant program designed to offer vocational training, skills building, and other support services to inmates returning to the community. We found that most responsibility for administering the program was assigned to DOL, and the BOP maintained limited oversight into how grant funds were spent and what type of programming was being offered. Therefore, the BOP was unable to ensure that FSA funds transferred to DOL advanced the purposes of the FSA.
- The BOP Lacked Financial Controls Over Its FSA Spending. We identified serious weaknesses with the BOP’s financial controls over FSA spending and found that it had difficulty obligating funds before the funds’ availability expired. For example, as of April 2026, $16.8 million of the BOP’s FY 2022 appropriation remained unobligated, and the BOP anticipates that it will not be able to use most of this amount to support FSA initiatives. Instead, remaining funds will ultimately be transferred to the DOJ’s Working Capital Fund, which can be used for a variety of purposes unrelated to the FSA.
- Despite Increased FSA Program Availability, the BOP Continues to Experience Significant Challenges in Offering FSA Programs to Inmates. Since FY 2022, the BOP has made progress in offering more FSA programs at its institutions. However, due to limited staff availability, a lack of instructional space, and lockdowns that limit inmate movement, many FSA programs are not as widely available as the BOP represents them to be in its public FSA Approved Programs Guide. We also found that about one-quarter of inmates who were released under FSA authorities between FYs 2022 and 2024 had not completed a single FSA program, and we identified issues with the BOP’s data on FSA programs that compromised the BOP’s ability to monitor FSA implementation, guide FSA decision-making, and report progress to stakeholders.
The OIG made seven recommendations to assist the BOP in implementing the FSA. The BOP agreed with all the recommendations.