Grimm Krupa Continues Fight for Accountability, Calls for Audit and Investigation of Public Funds

March 2, 2026

HARRISBURG – Rep. Charity Grimm Krupa (R-Fayette) announced that she has formally requested a review and investigation by the Pennsylvania Department of Community and Economic Development (DCED), the Pennsylvania Auditor General and the Pennsylvania Inspector General regarding the administration of taxpayer funds distributed through the Fay-Penn Economic Development Council.

Fay-Penn is a Fayette County-based nonprofit that serves as a certified economic development organization and functions as a primary local administrator and gatekeeper of state-supported grant and low-interest loan programs. In that role, Fay-Penn reviews applications, recommends or approves funding, and directs the distribution of public dollars intended to stimulate job creation, business growth and economic revitalization in Fayette County.

“For decades, millions of taxpayer dollars have flowed into Fayette County through programs administered and directed by Fay-Penn,” Krupa said. “With that level of authority comes a heightened responsibility. The people of our community deserve absolute confidence that these funds are managed lawfully, ethically and in a way that expands opportunity across our region — not in ways that benefit a limited circle of insiders.”

Last year, Krupa formally requested that the Pennsylvania Attorney General’s Office review serious allegations involving Fay-Penn. Given the significant role Fay-Penn plays in administering state-supported economic development funds, Grimm Krupa believes it is equally important that agencies with direct audit and oversight authority fully exercise their statutory powers. The DCED, auditor general and inspector general each have distinct oversight responsibilities designed to safeguard taxpayer dollars, ensure compliance with grant conditions and investigate potential misuse of public funds. Allegations of repeated related-party transactions and potential self-dealing within an organization entrusted with administering public resources should raise serious concern for every oversight body charged with protecting the integrity of state programs. Ensuring that these agencies use their authority is essential to restoring public confidence and protecting the taxpayers of Fayette County.

Publicly filed IRS Form 990 disclosures spanning multiple years reflect repeated “loans to and from interested persons,” including loans to businesses identified as being owned by directors. The filings also reflect multi-million-dollar “business transactions involving interested persons,” including construction and related contracts involving board members. In certain years, those transactions total several million dollars.

“These are not minor entries,” Grimm Krupa said. “When public filings reflect repeated related-party transactions involving leadership of an organization administering public funds, that warrants independent review.”

Krupa emphasized that Fayette County has endured decades of economic hardship despite significant public investment.

“Families are struggling with rising property taxes. Volunteer fire companies hold fundraisers just to keep the lights on. Communities face serious needs in public safety and child welfare,” she said. “Economic development dollars are intended to expand opportunity across the community. If funds are administered in ways that even create the appearance of insider benefit, public trust is eroded.”

In her letters, Krupa requested:

• A comprehensive audit of state-administered funds distributed through Fay-Penn.
• A review of related-party transactions and board member financial interests.
• Examination of conflict-of-interest compliance and recusal documentation.
• Determination of whether grant conditions, procurement standards or state laws were violated.
• Appropriate corrective action if warranted.

“Our responsibility as stewards of taxpayer dollars is sacred,” Grimm Krupa said. “Every public dollar should reflect our commitment to fairness, integrity and the greater good. Fayette County families deserve nothing less.”

Representative Charity Grimm Krupa
51st District
Pennsylvania House of Representatives
Contact: 724-438-6100
RepGrimmKrupa.com / Facebook.com/RepGrimmKrupa