Bush Signs Federal Funding Transparency Law

by Mike Godfrey, Tax-News.com, Washington

27 September 2006

President George W. Bush on Tuesday signed into law a bill that will allow Americans to "google" federal spending to find out which companies and organisations are benefiting from taxpayer-funded grants and contracts.

The bipartisan legislation, known as the Federal Funding Accountability Act and Transparency Act, directs the Office of Management and Budget to create a new website that will list government grants and contracts greater than $25,000, excluding those that must remain classified for national security reasons.

According to Bush, the website will allow individuals to search the name of any company, association, state or locality and find out what grants and contracts they've been awarded.The website will reveal the purpose of the funding, the amount of money provided, the agency providing the funding and other relevant information.

"By allowing Americans to Google their tax dollars, this new law will help taxpayers demand greater fiscal discipline. In other words, we're arming our fellow citizens with the information that will enable them to demand we do a better job -- a better job in the executive branch and a better job in the legislative branch," said Bush.

Rep. Roy Blunt (R-Mo), one of the bill's sponsors in the House of Representatives, observed: "This new law will enhance the accountability and transparency in the federal budget process, ensuring that our tax dollars are spent wisely."

"This is a win for citizens, who will be able to track the way their tax dollars are spent, and it’s a victory for the media, who will be able to keep an eye on federal government expenditures," he said.

Government Reform Chairman Tom Davis (R-Va.) added: "This is a huge victory for all who believe sunshine is the best disinfectant."

"It will provide transparency and accountability to the grant-making process and allow for continued improvement of transparency in federal contract awards."

The federal government awards approximately $300 billion in grants to roughly 30,000 different organizations annually. Each year, roughly one million contracts exceed the $25,000 reporting threshold.

The bill's supporter's argue that the new law will help eliminate wasteful spending, ensure compliance with federal law and improve compliance with lobbying restrictions.

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