The Federal Funding Accountability and Transparency Act: Background, Overview, and Implementation Issues (CRS Report for Congress)
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| Release Date |
Revised Jan. 31, 2008 |
| Report Number |
RL33680 |
| Report Type |
Report |
| Authors |
Garrett Leigh Hatch, Government and Finance Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Premium Oct. 6, 2006 (16 pages, $24.95)
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Summary:
On September 26, 2006, President Bush signed S. 2590, the Federal Funding Accountability and Transparency Act, into law (P.L. 109-282). In an attempt to expand oversight of federal spending, including earmarks, the new law required the Office of Management and Budget (OMB) to establish a publicly available online database containing information about entities that are awarded federal grants, loans, contracts, and other forms of assistance. Federal agencies award over $880 billion dollars annually in three of the primary categories of financial assistance to be included in the databaseâ$470 billion in grants, $381 billion in contracts, and $29 billion in direct loans. The FFATA was endorsed by leaders of both parties and an array of business, union, and watchdog organizations.
OMB launched the new database, USAspending.gov, on December 13, 2007. While the database has been praised as a step toward a worthy objectiveâenhancing the transparency of government expendituresâgovernment officials and members of the public have expressed concern that issues surrounding its implementation have not been adequately addressed. In particular, many observers question the reliability of information taken from the Federal Assistance Award Data System (FAADS) and the Federal Procurement Data System - Next Generation (FPDS-NG), which are important sources of information for USAspending.gov. They note that information in FAADS and FPDS is often incomplete and inaccurate, and therefore might limit transparency. Some observers also believe that the cost of establishing and maintaining the new database might grow as agencies seek to improve data quality and collect new information on subawards.
This report initially discusses the background of S. 2590, noting in particular how it compared to similar legislation in the House of Representatives. It then discusses the Federal Funding Accountability and Transparency Act's provisions, noting what types of assistance are to be part of the new database, the primary sources of the data, and deadlines for implementation. Finally, the report identifies and discusses issues that have been raised regarding the act that might affect its implementation, and that therefore might prove to be areas for future congressional oversight. This report will be updated as events warrant.
