A report released by the Federal Reserve’s internal watchdog has determined that the agency failed to effectively manage the $2.4 billion renovation of its Washington D.C. headquarters. The audit found that the Board of Governors repeatedly deviated from established cost-management protocols, leading to significant budget overruns. However, the investigation explicitly cleared the agency of any criminal wrongdoing.

This report serves as the latest development in a long-standing controversy surrounding the project. Former President Donald Trump has frequently cited the renovation costs as evidence of mismanagement at the Fed, specifically targeting the leadership of Chair Jerome Powell. The watchdog’s findings align with the conclusion of a separate Department of Justice investigation, which was dropped in April after finding no evidence of criminal activity. While the watchdog’s report confirms that the project was handled poorly from an administrative and fiscal oversight perspective, it stops short of suggesting that the mismanagement was motivated by illegal intent or corruption.