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"There have been many house fires due to faulty work done ON the government insulation program."

"....work done on insulation program" sounds not correct to me. If something is done on something else, it is done over that thing. For instance "He made faulty work on the roof."

But in the sentence, the work is not literally done on the insulation program, but it is done according to the insulation program. So, the program required those work be done.

So, I would expect the sentence should have one of these expressions. "....work done "according to/under/in accordance with/under" the government insulation program."

I checked the Collins dictionary to see if we can use "ON" in this sense and could not see "ON" having that function.

So, is the usage of "ON" correct in the sentence?

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When an activity is sponsored by or required by an official order or organized program, it is done under it. The definition being -- controlled, managed, or governed by, which is quite like saying in accordance with.

The work was done under the government insulation program.

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