OMB Director Reveals $1.9B Border Wall Funds Spent on “Community Consultations” and “Environmental Restoration” — Not Construction

On 3/29/2022, OMB Director Shalanda Young revealed that the $1.9 billion Congress had appropriated for border wall construction was being spent on “environmental restoration” and “community consultation” instead of building the wall. A Republican congressman called the budget’s deficit reduction claims “demagoguery,” noting the administration was “increasing everything” while claiming credit for reduced pandemic spending. Critics argued the budget doubled down on anti-energy policies that were driving up costs for consumers.

$1.9 Billion — For “Community Consultations”

A Republican pressed Young on the border wall funds. “There was $1.9 billion in this most recent omnibus bill that’s been carried over to finish the border wall. Is this administration going to finish the border wall?” the congressman asked.

Young carefully explained the administration’s strategy of spending the money on anything but the wall. “The $1.9 billion wasn’t rescinded. New money was not provided. The administration had a policy asking Congress to rescind that funding. In 2021, Congress did not,” Young said. “We are spending and obligating prudently.”

“And what are you obligating it to? Because you’re not doing any construction. Are you just paying people to hold the rusting materials?” the congressman pressed.

“No, we’re actually doing environmental restoration — anything that was woefully lacking. We’re also doing community consultation. I think that’s important to many of you who represent constituents,” Young said.

The revelation confirmed what critics had alleged: the administration was deliberately redirecting border wall funds to non-construction activities to avoid building the barrier that Congress had funded.

”Demagoguery” on Deficit Reduction

A Republican called out the administration’s deficit reduction claims. Biden had touted a $1.3 trillion deficit reduction. Young explained: “That’s a function of rolling off some of the emergency spending programs that were put in place by the prior administration.”

The congressman pounced. “That’s another — I don’t know if we should be demagoguing that, bringing the deficit down, and everybody knows that it’s because we’re not going to spend so much on a pandemic and emergency relief. We’re still increasing everything,” the congressman said.

Young pushed back: “That wasn’t a guaranteed thing.”

“Looks pretty different,” the congressman replied.

Another congressman questioned whether more spending was needed at all. “We’re going to have a record amount of revenues. Is it necessary that we raise more, or should we be looking at the expense side?” he asked. Young argued “you can bring down the deficit by spending more” — the administration’s central economic claim.

Anti-Energy Budget

A critic connected the budget to the energy crisis. “What you’re seeing in this proposed budget is more of this administration’s anti-energy, anti-fossil fuel push,” the critic said. “He’s looking overseas to OPEC. He’s looking at Qatar for natural gas. And essentially saying we’re going to take away any of the looser regulations that President Trump gave you.”

“Some of their biggest costs are food and energy. They like to strip that out when they look at inflation, and those numbers are still even bad,” the critic continued. “These are the contributing factors that are going to take us down a very, very dangerous path.”

Inflation to “Ease” — Eventually

Young acknowledged inflation would be “higher than anticipated” but maintained the standard forecast. “Outside forecasters expect that inflation will be higher than they were anticipating before the invasion,” Young said. “But we expect supply chain challenges to ease. We do expect inflation to ease this year and into next year.”

Biden “Watched Portions” of Jackson Hearing

Psaki confirmed Biden had been following the Jackson confirmation hearings. “The President watched portions of Judge Jackson’s hearing yesterday and today, and is proud of the way she is showcasing her extraordinary qualifications,” Psaki said. “He was also moved by the grace and dignity she has shown.”

Biden: “Moral Outrage” Not Policy

Biden was again asked about his “cannot remain in power” remark. “What I was expressing, just what I said — I was expressing the moral outrage I felt towards this man. I wasn’t articulating a policy change,” Biden said.

The Appropriations Shell Game

The border wall funding episode illustrated a broader pattern: the administration claiming to follow the law while systematically undermining congressional intent through creative reinterpretation. Congress appropriated money to build a wall. The administration spent it on “community consultations” and “environmental restoration.” Congress passed emergency pandemic spending. The administration claimed credit for “reducing the deficit” when that spending ended. In both cases, the executive branch was frustrating the will of the legislature while technically staying within legal bounds.

Key Takeaways

The $1.9 billion Congress appropriated for border wall construction was being spent on “environmental restoration” and “community consultation” — not building the wall.
A Republican called Biden’s deficit reduction claims “demagoguery,” noting it was simply reduced pandemic spending while “increasing everything” else.
The budget continued anti-energy policies that critics said were “contributing factors that will take us down a very dangerous path.”
The administration predicted inflation would “ease this year” while acknowledging it would be “higher than anticipated” before the invasion.
Biden said his “cannot remain in power” remark was “moral outrage” rather than a policy change.

Transcript Highlights

The following is transcribed from the video audio (unverified — AI-generated from audio).

What are you obligating the $1.9 billion to? You’re not doing any construction. We’re doing environmental restoration and community consultation.
We’re still increasing everything. And everybody knows the deficit is down because we’re not spending on pandemic emergency relief. That’s demagoguery.
You can bring down the deficit by spending more. You’ve heard that argument.
This is more of the administration’s anti-energy, anti-fossil fuel push. These contributing factors are going to take us down a dangerous path.
We expect inflation to ease this year and into next year.
I was expressing the moral outrage I felt. I wasn’t articulating a policy change.

Full transcript: 1057 words transcribed via Whisper AI.