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Reports News from the GAO Reports News from the GAO. https://www.gao.gov/rss/reports.xml Tue, 06 Oct 2026 22:34:48 -0400 GAO https://www.gao.gov/themes/custom/gao_uswds/img/gao-logo-rss.gif Reports News from the GAO https://www.gao.gov/rss/reports.xml Feed provided by GAO. Medicare Part D: Payments and Contracts Between Pharmacies and Plan Sponsors That Are Vertically Integrated [Reissued with revisions on Oct. 6, 2026] https://www.gao.gov/products/gao-26-107393 What GAO Found The insurance plan sponsors that provide Medicare Part D drug coverage have increasingly become vertically integrated—that is, under common ownership—with pharmacy benefit managers and pharmacies. GAO found that, for four large Part D plan sponsors, the pharmacies they owned accounted for about 28 percent of the Part D drugs they provided to their enrollees (drug utilization) and about 24 percent of the total payments to pharmacies in 2023 (see figure). Payments included both reimbursement from plan sponsors and cost sharing paid by or on behalf of beneficiaries. When these vertically integrated plan sponsors’ own pharmacies provided drugs to their enrollees, they primarily did so through mail-order pharmacies. In contrast, other (non-owned) pharmacies primarily provided drugs through retail pharmacies. Percentage of Drug Utilization and Payments at Owned and Non-Owned Pharmacies for Four Selected Medicare Part D Plan Sponsors, 2023 When these plan sponsors paid pharmacies for a 30-day supply of the 100 most commonly used prescription drugs, payments and cost sharing for at least 94 percent of these drugs were lower for owned pharmacies than for non-owned pharmacies. These 100 drugs with the highest total utilization in 2023 were primarily generic drugs, and average payments to owned and non-owned pharmacies for a 30-day supply of most were $10 or less. Lower cost sharing at plan sponsors’ own (primarily mail-order) pharmacies gives beneficiaries a financial incentive to use these pharmacies instead of non-owned (primarily retail) pharmacies, though beneficiaries may consider other factors when choosing a pharmacy to fill a prescription. Payments to pharmacies and cost sharing were also generally lower at owned pharmacies for the 100 drugs with the highest total payments in 2023, which were primarily brand-name drugs. For some of these drugs, however, payments or cost sharing were higher at owned pharmacies. For example, cost sharing across the four selected plan sponsors was up to about $340 higher at owned pharmacies for about half of the 20 drugs with the highest payments per 30-day supply. Why GAO Did This Study Medicare Part D spent $150 billion on prescription drug coverage for 54 million beneficiaries in 2025. Vertically integrated plan sponsors may encourage beneficiaries to fill prescriptions at—or utilize—their own pharmacies, a practice known as steering. GAO was asked to review vertical integration among Part D plan sponsors, pharmacy benefit managers, and pharmacies. This report describes drug utilization at and payments to selected vertically integrated Part D plan sponsors’ own pharmacies compared to non-owned pharmacies, among other issues. GAO selected four vertically integrated Part D plan sponsors from among the 15 plan sponsors with the largest Part D enrollment in 2023. These four large, vertically integrated plan sponsors accounted for over 40 percent of total Part D enrollment in 2023. GAO analyzed the Centers for Medicare & Medicaid Services Part D utilization and payments data for 2023 (the data most recently available at the time of GAO’s analysis). Our results for the four selected plan sponsors for 2023 are not generalizable to other plan sponsors or years. For example, Part D benefit changes since 2023 could have affected plan sponsors’ Part D drug utilization and payments at owned and non-owned pharmacies. For more information, contact John Dicken at dickenj@gao.gov. Tue, 06 Oct 2026 14:40:52 -0400 /products/gao-26-107393 Mortgage Lending: Newly Enacted Restrictions May Help Curb Unwanted Solicitations While Preserving Comparison Shopping https://www.gao.gov/products/gao-27-108874 What GAO Found When homebuyers apply for a mortgage, lenders request their credit reports from credit reporting agencies. These agencies may then sell the homebuyers’ contact and credit information to other lenders and brokers, which use it to send competing loan offers. Before recent legislation, credit reporting agencies could, without the homebuyer’s consent, provide this information to those that did not have an existing relationship with the homebuyer (see figure). Thus, homebuyers could receive dozens of mortgage solicitations by phone or text in a short period. Example of the Mortgage Trigger Lead Marketing Process According to industry stakeholders, the primary benefit of trigger leads is that they can encourage homebuyers to comparison shop for loans and potentially save money. But this benefit may be limited: Recent federal survey results suggest that no more than 3.5 percent of homebuyers may have obtained a loan through competing offers based on trigger leads. One lender said homebuyers have ways to compare lenders before applying for a mortgage, so offers based on trigger leads generated later in the homebuying process may be less useful. Trigger leads resulted in a high volume of unwanted marketing solicitations and posed other drawbacks for some homebuyers, according to consumer advocates and industry stakeholders: A high volume of solicitations can overwhelm and confuse homebuyers, and aggressive tactics can annoy them. Broad dissemination of homebuyers’ information could expose them to misleading or deceptive practices. Homebuyers may view the sale of their personal information and resulting marketing solicitations as an invasion of privacy. In 2025, the Homebuyers Privacy Protection Act restricted credit reporting agencies’ ability to provide residential mortgage trigger leads to parties that have an existing relationship with or consent from the homebuyer. Because these restrictions took effect in March 2026, not enough time has passed to determine their effects on homebuyers. If effectively implemented, these restrictions could limit access to trigger leads and reduce the volume of solicitations homebuyers receive while preserving opportunities to comparison shop. Why GAO Did This Study Each year, millions of homebuyers apply for a mortgage, and some receive marketing calls and texts from other lenders and brokers with competing offers based on trigger leads. The volume of these mortgage solicitations prompted the enactment of the Homebuyers Privacy Protection Act in 2025. The act includes a provision for GAO to assess the value of trigger leads for homebuyers. This report examines (1) the potential benefits of trigger leads, (2) drawbacks associated with them, and (3) how the act’s restrictions may affect those benefits and drawbacks.  GAO reviewed federal and state laws, searched for and reviewed relevant literature, and analyzed 2022–2024 responses to the National Survey of Mortgage Originations. In addition, GAO obtained information from or interviewed officials of credit reporting agencies, consumer groups, mortgage lenders (banks, credit unions, and nonbanks), industry associations, the association for state banking regulators, and a state regulatory agency. GAO also analyzed the Consumer Financial Protection Bureau’s (CFPB) consumer complaints database and used artificial intelligence to identify complaints related to mortgage solicitations, and interviewed officials from CFPB and the Federal Trade Commission. For more information, contact William W. Colvin at colvinw@gao.gov. Tue, 06 Oct 2026 07:29:33 -0400 /products/gao-27-108874 Disability Employment: DOL Should Enhance Monitoring and Guidance for Federal Contractors https://www.gao.gov/products/gao-26-107937 What GAO Found Section 503 of the Rehabilitation Act of 1973 (Section 503) requires certain federal contractors to take proactive steps to employ people with disabilities. The Office of Federal Contract Compliance Programs (OFCCP) within the Department of Labor (DOL) oversees contractors’ compliance with Section 503. Since January 2025, DOL has reduced its oversight activities. For example, DOL has suspended audits of selected contractors, which were a key tool for monitoring compliance. From fiscal years 2017 through 2025, 532 audits found Section 503 violations. Without resuming audits, DOL has less assurance that contractors are supporting employment of people with disabilities. Further, DOL has reduced OFCCP’s workforce in response to changes in its activities (see fig.). However, these changes were not informed by strategic workforce planning consistent with key principles for such efforts. DOL has made changes to Section 503 regulations that could further impact OFCCP’s activities. Engaging in strategic workforce planning would help DOL ensure that OFCCP’s workforce composition meets its needs. Office of Federal Contract Compliance Programs Workforce, FY 2017–2026 Federal contractors face a range of challenges complying with Section 503. Selected stakeholders identified challenges in three key areas: conducting outreach to and recruiting people with disabilities, retaining and advancing people with disabilities, and demonstrating compliance with Section 503. Stakeholders also said that DOL could provide additional guidance to help contactors comply with the law. For example, information on how to provide reasonable accommodations and a list of best practices for Section 503 compliance could help contractors better understand how to support employees with disabilities. Why GAO Did This Study In fiscal year 2025, the federal government spent about $793 billion on contracts with federal contractors—which employ over 1 million U.S. workers. Section 503 prohibits federal contractors from discriminating in employment against people with disabilities. It also requires certain contractors to take proactive steps to employ and advance in employment people with disabilities. GAO was asked to review the implementation and oversight of Section 503. This report addresses (1) the extent to which DOL monitors Section 503 compliance and plans for its workforce needs, and (2) what challenges, if any, contractors face in complying with Section 503 and the extent to which DOL has provided resources to assist contractors. GAO analyzed OFCCP enforcement data and DOL human resources data, and reviewed DOL documents. GAO conducted interviews and discussion groups with DOL officials as well as representatives of contractors, consultants who assist contractors with compliance, academic researchers, and other stakeholders who were familiar with Section 503 compliance or supporting employment of people with disabilities. GAO also conducted a nongeneralizable survey of representatives of contractors. Tue, 06 Oct 2026 07:13:51 -0400 /products/gao-26-107937 Quantum Computing: Federal Actions Needed to Prepare for Emerging Cyber Threat https://www.gao.gov/products/gao-27-108740 What GAO Found Quantum computers leverage qubits (the quantum equivalent of classical computer bits) to solve specific problems significantly faster than classical computers. However, the emergence of quantum computers could undermine the cryptography (e.g., encryption) that federal agencies use to secure their systems. Today’s quantum computers cannot yet break this cryptography. But a future quantum computer of sufficient size and sophistication—referred to as a cryptographically relevant quantum computer (CRQC)—could potentially do so for certain cryptography. Most industry experts believe that a CRQC will be developed, possibly as soon as the 2030s. However, development estimates vary widely due to several factors, such as uncertainty in the rate of growth for qubits and how many qubits will be needed. Once a CRQC is developed, its use c

Reports News from the GAO Reports News from the GAO. https://www.gao.gov/rss/reports.xml Wed, 07 Oct 2026 09:05:51 -0400 GAO https://www.gao.gov/themes/custom/gao_uswds/img/gao-logo-rss.gif Reports News from the GAO https://www.gao.gov/rss/reports.xml Feed provided by GAO. Precision Navigation Systems: Challenges Remain with Fielding New Capabilities https://www.gao.gov/products/gao-27-107676 What GAO Found The Department of Defense’s (DOD) efforts to modernize GPS continue to face delays. In response, DOD is developing new complementary sources of positioning, navigation, and timing (PNT) data to mitigate GPS threats. In 2026, after years of delays, DOD canceled the Next Generation Operational Control System ground control system and began modernizing the existing GPS Operational Control Segment. Among other effects, this creates risks for the launch, checkout, and operation of new GPS satellites. Given ongoing threats to GPS, DOD is operating and continuing development of (1) satellite-based PNT systems, (2) non-satellite-based PNT systems, and (3) backup timing solutions. Operational Illustration of Threats to GPS and Complementary Positioning, Navigation, and Timing Systems The Air Force continues to make progress developing modernized GPS military code (M-code) receiver cards, but challenges remain with fielding and integration. For example, the M-code aviation receiver programs continue to encounter development and integration challenges. In response, the Navy is developing an interim solution for its aircraft to use M-code. On the other hand, the Army and Navy are fielding M-code capable and multi-PNT receivers in ground vehicles, ships, and Army aircraft. All the military services are also pursuing integration of complementary PNT data into multi-PNT receivers. Challenges with aligning multiple, fragmented PNT efforts across the military services impact DOD’s ability to ensure that M-code and PNT efforts are completed promptly. Congress mandated a PNT Oversight Council to oversee the portfolio. While the council can make budget-related recommendations to the services, the services are responsible for their own budgets. The PNT enterprise could benefit from consolidating and aligning efforts among the services. DOD has taken some steps to consolidate multiple PNT efforts, such as combining aircraft PNT receivers and M-code receiver card efforts into a single Air Force managed joint program office. Benefits of consolidation could include synchronization of schedules and better strategic alignment of funding. Why GAO Did This Study The U.S. military and civilians depend daily on accurate PNT data provided by GPS operated by the Space Force on behalf of DOD. DOD has worked for decades to modernize its GPS, including the use of a new signal—called M-code—and other features to counter evolving threats. Challenges have delayed these efforts. The military services have also started developing and fielding complementary PNT systems to ensure the availability of this foundational military capability. Congress included a provision in law for GAO to report on DOD’s GPS modernization efforts and development and fielding of complementary PNT efforts. This report (1) addresses the progress DOD has made in modernizing GPS and providing complementary PNT data to the warfighter; (2) discusses the status of DOD efforts to develop and field modernized PNT receivers; and (3) assesses the extent to which DOD has taken steps to oversee the PNT portfolio, and what challenges it is facing. To conduct this work, GAO reviewed documentation from GPS modernization and complementary PNT programs and efforts and interviewed relevant officials from DOD and the military departments. Wed, 07 Oct 2026 07:29:33 -0400 /products/gao-27-107676 IT Dashboard: Selected Agencies’ Investment Ratings Fail to Fully Consider Risks https://www.gao.gov/products/gao-27-108416 What GAO Found The Federal Information Technology (IT) Dashboard is intended to show the level of risk for an investment. The Dashboard reflects Chief Information Officers’ (CIO) ratings of risk. Selected agencies that GAO reviewed used different processes to develop their ratings. Most of these processes included some, if not all, of six factors that the Office of Management and Budget (OMB) suggested. GAO’s assessments generally identified the presence of more risk compared to the associated CIO ratings. GAO determined its assessments based on investment risk documentation. Of the 53 investments assessed, GAO’s assessments matched the CIO ratings 27 times, showed more risk 24 times, and showed less risk two times (see graphic). Comparison of Selected Investment’s Chief Information Officer Ratings to GAO Assessments Two issues contributed to the differences between GAO and CIO ratings. Specifically, 21 of the 53 CIO ratings were not updated in a timely manner according to agencies’ processes. In addition, two agencies’ rating processes span longer than quarterly, contrary to OMB’s guidance. In April 2026, OMB announced that it was taking steps to sunset the Dashboard and replace it with a new streamlined system but did not provide a timeframe for its release. In the interim, it is critical that selected agencies address issues with their CIO ratings. Without doing so, critical IT investments may not receive proper oversight, and emerging risks may remain unidentified or unmanaged. For example, a system modernization effort that falls behind schedule but continues to display an outdated “low‑risk” rating might not get the scrutiny it needs and fall further behind schedule. GAO previously recommended that OMB improve its oversight of troubled investments identified from CIO rating data; however, OMB has not yet acted on this recommendation. As a result, agencies and OMB may be unable to identify emerging risks in time, potentially allowing underperforming investments to proceed without needed intervention and increase the risk of higher costs. As OMB transitions to a new system, it is imperative that agencies address issues with the quality and frequency of CIO ratings. This is critical to ensuring that the new system strengthens the monitoring of IT investment risk. Why GAO Did This Study The federal government spends over $100 billion annually on IT and cyber investments, but many projects fail, facing cost overruns and delays. In 2009, OMB launched the IT Dashboard to provide transparency on IT investments. OMB sets Dashboard policies and the General Services Administration operates the Dashboard. GAO was asked to review the CIO ratings on the IT Dashboard. This report describes agencies’ processes for determining the CIO risk ratings for major IT investments, assesses the risks of federal IT investments, and analyzes any differences with the investments’ CIO risk ratings, among other things. GAO reviewed 26 agencies’ fiscal year 2025 budget data reported to OMB to identify major IT investments of $35 million or more of development activities; this resulted in 53 selected investments at 12 agencies. GAO then reviewed agencies’ CIO ratings processes, assessed the risks of the 53 investments, and compared GAO’s assessments to the CIO ratings. Wed, 07 Oct 2026 07:21:12 -0400 /products/gao-27-108416 Economic Development Administration: Better Coordination with Regional Commissions and Performance Management Needed https://www.gao.gov/products/gao-27-108496 What GAO Found The Economic Development Administration (EDA) and five regional commissions—the Appalachian Regional Commission, Delta Regional Authority, Denali Commission, Northern Border Regional Commission, and Southeast Crescent Regional Commission—awarded more than $12 billion in grants during fiscal years 2016 through 2024 (Southwest Border Regional Commission awarded its first grants in fiscal year 2025). GAO found that economic conditions, such as poverty and unemployment rates, generally improved in regional commission areas, although these changes were difficult to attribute to EDA or regional commission funding. Grantees and local development officials GAO selected for interviews described benefits, including improved infrastructure and expanded job and business opportunities. Total Dollar Amount of EDA and Regional Commission Grants Awarded and Appropriations, Fiscal Years 2016–2024 EDA and most regional commissions have procedures for collecting grant performance information to assess progress toward goals and communicate results, which are key performance management practices. The Denali Commission has strategic goals but does not have guidance and procedures for collecting standardized, objective, and measurable performance information across its grants, limiting its ability to assess grant and program performance. In addition, EDA has not systematically validated key performance measure data since 2020, limiting the reliability of these data for assessing and reporting results. EDA does not have a comprehensive framework for coordinating with the regional commissions. Instead, its coordination arrangements vary––from formal agreements and regular communication to little or no project-level coordination. EDA is statutorily required to coordinate activities related to the preparation and implementation of comprehensive economic development strategies with federal entities carrying out federal programs (including regional commissions). Without a coordination framework, EDA has less assurance that data and resources are being effectively leveraged, and that limited funds for economic development are being used efficiently. Why GAO Did This Study The Department of Commerce’s EDA provides grants to support economic development in distressed areas and promote growth and job creation. Federal regional commissions are intended to support economic development and infrastructure projects in distressed portions of designated geographic regions. The Thomas R. Carper Water Resources Development Act of 2024 includes a provision for GAO to review EDA and regional commission programs. This report examines (1) trends in EDA and regional commission grants and economic conditions in the areas they serve, (2) EDA and regional commission performance management practices, and (3) EDA’s coordination with regional commissions. GAO analyzed EDA and regional commission award data for fiscal years 2016 through 2024 and data from the Bureau of Labor Statistics and Census on economic conditions in regional commission areas. GAO also reviewed agency documentation and procedures related to grant performance. GAO visited projects in Maryland, Vermont, and Louisiana and interviewed agency officials and a nongeneralizable sample of grantees and local stakeholders about grant effects, performance, and coordination between EDA and the regional commissions. Wed, 07 Oct 2026 07:14:42 -0400 /products/gao-27-108496 Medicare Part D: Payments and Contracts Between Pharmacies and Plan Sponsors That Are Vertically Integrated [Reissued with revisions on Oct. 6, 2026] https://www.gao.gov/products/gao-26-107393 What GAO Found The insurance plan sponsors that provide Medicare Part D drug coverage have increasingly become vertically integrated—that is, under common ownership—with pharmacy benefit managers and pharmacies. GAO found that, for four large Part D plan sponsors, the pharmacies they owned accounted for about 28 percent of the Part D drugs they provided to their enrollees (drug utilization) and about 24 percent of the total payments to pharmacies in 2023 (see figure). Payments included both reimbursement from plan sponsors and cost sharing paid by or on behalf of beneficiaries. When these vertically integrated plan sponsors’ own pharmacies provided drugs to their enrollees, they primarily did so through mail-order pharmacies. In contrast, other (non-owned) pharmacies primarily provided drugs through retail pharmacies. Percentage of Drug Utilization and Payments at Owned and Non-Owned Pharmacies for Four Selected

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