[Congressional Record (Bound Edition), Volume 152 (2006), Part 13]
[Senate]
[Pages 17543-17545]
[From the U.S. Government Publishing Office, www.gpo.gov]




      FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT OF 2006

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 576, S. 2590.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 2590) to require full disclosure of all entities 
     and organizations receiving Federal funds.

  There being no objection, the Senate proceeded to consider the bill 
which had been reported by the Homeland Security and Governmental 
Affairs Committee with an amendment to strike out all after the 
enacting clause and insert the part printed in italic.

                                S. 2590

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     [SECTION 1. SHORT TITLE.

       [This Act may be cited as the ``Federal Funding 
     Accountability and Transparency Act of 2006''.

     [SEC. 2. FULL DISCLOSURE OF ENTITIES RECEIVING FEDERAL 
                   FUNDING.

       [(a) In General.--
       [(1) Website.--Effective beginning January 1, 2007 and 
     subject to paragraphs (2) and (3), the Office of Management 
     and Budget shall ensure the existence and operation of a 
     single updated searchable database website accessible by the 
     public at no cost that includes for each entity receiving 
     Federal funding--
       [(A) the name of the entity;
       [(B) the amount of any Federal funds that the entity has 
     received in each of the last 10 fiscal years;
       [(C) an itemized breakdown of each transaction, including 
     funding agency, program source, and a description of the 
     purpose of each funding action;
       [(D) the location of the entity and primary location of 
     performance, including the city, State, congressional 
     district, and country;
       [(E) a unique identifier for each such entity and parent 
     entity, should the entity be owned by another entity; and
       [(F) any other relevant information.
       [(2) Initial data.--Effective January 1, 2007, the website 
     shall include data for fiscal years 2006 and 2007.
       [(3) Previous fiscal years.--Not later than January 1, 
     2009, information required by this section shall be posted on 
     the website for fiscal years 1999 through 2005.
       [(b) Definitions.--In this section:
       [(1) Entity.--The term ``entity''--
       [(A) includes--
       [(i) a corporation;
       [(ii) an association;
       [(iii) a partnership;
       [(iv) a limited liability company;
       [(v) a limited liability partnership;
       [(vi) any other legal business entity;
       [(vii) grantees, contractors, and, on and after October 1, 
     2007, subgrantees and subcontractors; and
       [(viii) any State or locality; and
       [(B) does not include--
       [(i) an individual recipient of Federal assistance;
       [(ii) a Federal employee; or
       [(iii) a grant or contract of a nature that could be 
     reasonably expected to cause damage to national security.
       [(2) Federal funding.--The term ``federal funding''--
       [(A) means Federal financial assistance and expenditures 
     that include grants, contracts, subgrants, subcontracts, 
     loans, awards and other forms of financial assistance; and
       [(B) does not include credit card transactions or minor 
     purchases.
       [(3) Searchable database website.--The term ``searchable 
     database website'' means a website that allows the public 
     to--
       [(A) search Federal funding by name of entity, parent 
     entity, or type of industry, geography, including location of 
     the entity and the primary location of the performance, 
     amounts and types of federal funding, program sources, type 
     of activity being performed, time factors such as fiscal 
     years or multiple fiscal years, and other relevant 
     information; and
       [(B) download data included in subparagraph (A) including 
     outcomes from searches.
       [(c) Website.--The database website established by this 
     section--
       [(1) shall not be considered in compliance if it links to 
     FPDS, Grants.gov or other existing websites and databases, 
     unless each of those sites has information from all agencies 
     and each category of information required to be itemized can 
     be searched electronically by field in a single search;
       [(2) shall provide an opportunity for the public to provide 
     input about the utility of the site and recommendations for 
     improvements; and
       [(3) shall be updated not later than 30 days after the 
     award of any assistance requiring a posting.
       [(d) Agency Responsibilities.--The Director of OMB shall 
     provide guidance to agency heads to ensure compliance with 
     this section.
       [(e) Report.--The Director of OMB shall annually report to 
     the Senate Committee on Homeland Security and Government 
     Affairs and the House Committee on Government Reform on 
     implementation of the website that shall include data about 
     the usage and public feedback on the utility of the site, 
     including recommendations for improvements. The annual report 
     shall be made publicly available on the website.]

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Funding 
     Accountability and Transparency Act of 2006''.

     SEC. 2. FULL DISCLOSURE OF ENTITIES RECEIVING FEDERAL 
                   FUNDING.

       (a) Definitions.--In this section:
       (1) Entity.--The term ``entity''--
       (A) includes, whether for profit or nonprofit--
       (i) a corporation;
       (ii) an association;
       (iii) a partnership;
       (iv) a limited liability company;
       (v) a limited liability partnership;
       (vi) a sole proprietorship;
       (vii) any other legal business entity;
       (viii) any other grantee or contractor that is not excluded 
     by subparagraph (B) or (C); and
       (ix) any State or locality;
       (B) on and after January 1, 2009, includes any 
     subcontractor or subgrantee; and
       (C) does not include--
       (i) an individual recipient of Federal assistance; or
       (ii) a Federal employee.
       (2) Federal award.--The term ``Federal award''--
       (A) means Federal financial assistance and expenditures 
     that include grants, contracts, subgrants, subcontracts, 
     loans, awards, cooperative agreements, purchase orders, task 
     orders, delivery orders, and other forms of financial 
     assistance;

[[Page 17544]]

       (B) does not include individual transactions below $25,000; 
     and
       (C) before October 1, 2008, does not include credit card 
     transactions.
       (3) Searchable website.--The term ``searchable website'' 
     means a website that allows the public to--
       (A) search Federal funding by any element required by 
     subsection (b)(1);
       (B) ascertain through a single search the total amount of 
     Federal funding awarded to an entity, by fiscal year; and
       (C) download data included in subparagraph (A) included in 
     the outcome from searches.
       (b) In General.--
       (1) Website.--Not later than January 1, 2008, the Office of 
     Management and Budget shall, in accordance with this section 
     and section 204 of the E-Government Act of 2002 (Public Law 
     107-347; 44 U.S.C. 3501 note), ensure the existence and 
     operation of a single searchable website, accessible by the 
     public at no cost to access, that includes for each Federal 
     award--
       (A) the name of the entity receiving the award;
       (B) the amount of the award;
       (C) information on the award including transaction type, 
     funding agency, the North American Industry Classification 
     System code or Catalog of Federal Domestic Assistance number 
     (where applicable), program source, and an award title 
     descriptive of the purpose of each funding action;
       (D) the location of the entity receiving the award and the 
     primary location of performance under the award, including 
     the city, State, congressional district, and country;
       (E) a unique identifier of the entity receiving the award 
     and of the parent entity of the recipient, should the entity 
     be owned by another entity; and
       (F) any other relevant information specified by the Office 
     of Management and Budget.
       (2) Scope of data.--The website shall include data for 
     fiscal year 2007, and each fiscal year thereafter.
       (3) Designation of agencies.--The Director of the Office of 
     Management and Budget is authorized to designate one or more 
     Federal agencies to participate in the development, 
     establishment, operation, and support of the single website. 
     In the initial designation, or in subsequent instructions and 
     guidance, the Director may specify the scope of the 
     responsibilities of each such agency.
       (4) Agency responsibilities.--Federal agencies shall comply 
     with the instructions and guidance issued by the Director of 
     the Office of Management and Budget under paragraph (3), and 
     shall provide appropriate assistance to the Director upon 
     request, so as to assist the Director in ensuring the 
     existence and operation of the single website.
       (c) Website.--The website established under this section--
       (1) may use as the source of its data the Federal 
     Procurement Data System, Federal Assistance Award Data 
     System, and Grants.gov, if all of these data sources are 
     searchable through the website and can be accessed in a 
     single search;
       (2) shall not be considered in compliance if it hyperlinks 
     to the Federal Procurement Data System website, Federal 
     Assistance Award Data System website, Grants.gov website, or 
     other existing websites, so that the information elements 
     required in subsection (b)(1) cannot be searched 
     electronically by field in a single search;
       (3) shall provide an opportunity for the public to provide 
     input about the utility of the site and recommendations for 
     improvements; and
       (4) shall be updated not later than 30 days after the award 
     of any Federal award requiring a posting.
       (d) Subaward Data.--
       (1) Pilot program.--
       (A) In general.--Not later than July 1, 2007, the Director 
     of the Office of Management and Budget shall commence a pilot 
     program to--
       (i) test the collection and accession of data about 
     subgrants and subcontracts; and
       (ii) determine how to implement a subaward reporting 
     program across the Federal Government, including--

       (I) a reporting system under which the entity issuing a 
     subgrant or subcontract is responsible for fulfilling the 
     subaward reporting requirement; and
       (II) a mechanism for collecting and incorporating agency 
     and public feedback on the design and utility of the website.

       (B) Termination.--The pilot program under subparagraph (A) 
     shall terminate not later than January 1, 2009.
       (2) Reporting of subawards.--
       (A) In general.--Based on the pilot program conducted under 
     paragraph (1), and, except as provided in subparagraph (B), 
     not later than January 1, 2009, the Director of the Office of 
     Management and Budget--
       (i) shall ensure that data regarding subawards are 
     disclosed in the same manner as data regarding other Federal 
     awards, as required by this Act; and
       (ii) shall ensure that the method for collecting and 
     distributing data about subawards under clause (i)--

       (I) minimizes burdens imposed on Federal award recipients 
     and subaward recipients;
       (II) allows Federal award recipients and subaward 
     recipients to allocate reasonable costs for the collection 
     and reporting of subaward data as indirect costs; and
       (III) establishes cost-effective requirements for 
     collecting subaward data under block grants, formula grants, 
     and other types of assistance to State and local governments.

       (B) Extension of deadline.--For subaward recipients that 
     receive Federal funds through State, local, or tribal 
     governments, the Director of the Office of Management and 
     Budget may extend the deadline for ensuring that data 
     regarding such subawards are disclosed in the same manner as 
     data regarding other Federal awards for a period not to 
     exceed 18 months, if the Director determines that compliance 
     would impose an undue burden on the subaward recipient.
       (e) Exception.--Any entity that demonstrates to the 
     Director of the Office of Management and Budget that the 
     gross income, from all sources, for such entity did not 
     exceed $300,000 in the previous tax year of such entity shall 
     be exempt from the requirement to report subawards under 
     subsection (d), until the Director determines that the 
     imposition of such reporting requirements will not cause an 
     undue burden on such entities.
       (f) Construction.--Nothing in this Act shall prohibit the 
     Office of Management and Budget from including through the 
     website established under this section access to data that is 
     publicly available in any other Federal database.
       (g) Report.--
       (1) In general.--The Director of the Office of Management 
     and Budget shall submit to the Committee on Homeland Security 
     and Governmental Affairs of the Senate and the Committee on 
     Government Reform of the House of Representatives an annual 
     report regarding the implementation of the website 
     established under this section.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include--
       (A) data regarding the usage and public feedback on the 
     utility of the site (including recommendations for improving 
     data quality and collection);
       (B) an assessment of the reporting burden placed on Federal 
     award and subaward recipients; and
       (C) an explanation of any extension of the subaward 
     reporting deadline under subsection (d)(2)(B), if applicable.
       (3) Publication.--The Director of the Office of Management 
     and Budget shall make each report submitted under paragraph 
     (1) publicly available on the website established under this 
     section.

     SEC. 3. CLASSIFIED INFORMATION.

       Nothing in this Act shall require the disclosure of 
     classified information.

  Mr. FRIST. Mr. President, I am proud to be an original cosponsor of 
the Federal Funding Accountability and Transparency Act, S. 2590, that 
I have brought before the Senate this evening. This is a simple bill, 
yet a profound bill, designed to simply shine more sunlight, shine that 
light that we all know is so necessary, on Federal spending. I am 
absolutely convinced that this bill will go a long way in ultimately 
reflecting greater fiscal discipline and greater accountability.
  This is a simple bill but profound, profound in the sense of what it 
requires. One way to think of the bill is that it will create, for the 
very first time in the Executive Office of the President, the Office of 
Management and Budget, the equivalent of a Google search engine for all 
Americans to see how their Federal tax dollars are being expended. That 
is the simplicity of it all.
  I congratulate my colleagues, Senators Coburn and Obama--I just 
talked to Senator Coburn on the phone--who are the original sponsors of 
this very important, commonsense piece of legislation. I do 
congratulate the chairman and ranking member of the Homeland Security 
and Governmental Affairs Committee, Senators Collins and Lieberman, for 
their expeditious consideration and reporting of this legislation.
  Once this bill is enacted, taxpayers will have the ability to know 
exactly how their money is being spent and, with that greater 
transparency, will come greater accountability.
  The bill expands upon E-Government management tools that were enacted 
in 2002 by making all Federal funding awards, grants, contracts and 
loans, easily searchable on a public Web site. Only transactions under 
$25,000 would be exempt from this reporting requirement, as well as 
awards that are classified for national security purposes.
  This new tool will be a valuable asset in the continuing effort to 
spend the taxpayers' dollars wisely, without waste and without misuse.
  Again, congratulations to Senators Coburn and Obama for their 
untiring work on this bill. It is my honor to join them as an original 
cosponsor of this simple, commonsense but important piece of 
legislation.
  Mr. LAUTENBERG. Mr. President, I am proud to support S. 2590, the 
Federal Funding Accountability and Transparency Act. This important 
legislation requires the Office of Management and Budget to create an 
online

[[Page 17545]]

searchable Web site to allow Americans to understand who is getting 
Federal money.
  This legislation has broad support from across the political 
spectrum. Whether we believe we spend too much or we should be doing 
more to help people in need, we can all agree that we ought to get 
value from the dollars we spend. Transparency is the first step in that 
process.
  I believe that S. 2590 is only the first step. I am excited that 
Senators Coburn and Obama have endorsed the concept of creating a 
similar database for targeted tax benefits that go to companies or 
industries who are adept enough at Washington politics to get them 
enacted.
  Like the spending to be disclosed in S. 2590, many targeted tax 
breaks are good policy. But the American people deserve to know who is 
paying less in taxes and causing them to pay more. They have a right to 
know who is getting benefits from Congress.
  I look forward to working with my colleagues to have a bill, hold 
hearings, bring the bill to the floor, and make information on tax 
benefits public and easily accessible.
  Mr. COBURN. Mr. President, Senators Barack Obama, Tom Carper, John 
McCain, and I earlier this year introduced S. 2590, the Federal Funding 
Accountability and Transparency Act of 2006, to bring increased 
transparency to the way the Federal Government spends taxpayer money. 
Transparency means allowing citizens to access accurate information on 
Federal spending decisions in a timely fashion for the purpose of 
keeping their elected officials accountable. Outside of protecting 
national security and individual privacy, there is no reason why the 
operations of all Federal agencies should not be widely known by as 
many as would like to know. It is because this belief is widely shared 
by the American people as well as many in this body that S. 2590 has 
gained the cosponsorship of dozens of Senators.
  I believe, though, that transparency in Government decisionmaking 
should not be limited simply to spending, but should also be extended 
to the decisions Congress makes about the Tax Code. The Tax Code is 
currently tens of thousands of pages in length and far too confusing 
for even IRS customer service agents to understand, let alone the 
average citizen with far less expertise. Because I believe that 
transparency is one of the best tools we have to curb wasteful 
behavior, I look forward working with Senator Frank Lautenberg to 
develop bipartisan legislation like S. 2590 that will bring increased 
transparency to the Tax Code by allowing the American public to 
understand the real world effects of the Tax Code. Tax Code matters are 
extremely complex and the American public has a right to know how the 
Tax Code affects them. American taxpayers also deserve to know if they 
are paying higher taxes in order to offset the loss of revenue due to 
special treatment for special interest groups. This is a complex issue 
that will require careful study. It is my intention to address this 
issue in a future hearing of the Subcommittee on Federal Financial 
Management, Government Information, and International Security. I 
believe that a hearing addressing this issue will help us all to better 
understand the ultimate effects of targeted tax expenditures. Further 
study will also help to inform us on how to fully address the issue of 
greater transparency.
  I thank Senator Lautenberg for his attention to this issue and I look 
forward to working with him and Senator Obama to promote increased 
Government transparency. As Thomas Jefferson wrote back in 1802, ``We 
might hope to see the finances of the Union as clear and intelligible 
as a merchant's books, so that every member of Congress and every man 
of any mind in the Union should be able to comprehend them, to 
investigate abuses, and consequently to control them.''
  Mr. OBAMA. Mr. President, I thank my distinguished colleagues from 
New Jersey and Oklahoma. It has been a pleasure to work with them on 
important legislation to improve Federal financial transparency and 
accountability. The American people have a right to know how Federal 
resources are being used. Congress and the President should make it as 
easy as possible for taxpayers to see how well we are doing our jobs as 
stewards of Federal revenues and administrators of Federal spending. 
All of us should have adequate tools to monitor and evaluate how 
departments and agencies are performing their important functions. The 
Web site our legislation calls for will be an important tool in 
reducing wasteful earmarks and unjustified pork barrel spending. 
Transparency of spending is an important step in improving 
accountability and performance.
  I agree with Senators  Lautenberg and Coburn that we also need 
transparency in Federal tax policy. The same way taxpayers should be 
able to see which companies and organizations receive Federal grants or 
contracts or other forms of financial assistance, Americans should be 
able to see which companies and organizations are receiving narrowly 
targeted tax credits and deductions. A tax break for one taxpayer often 
means higher taxes for everybody else. It is our duty to make sure that 
tax breaks that only benefit a few taxpayers at the expense of 
everybody else are legitimate and appropriate. I have no doubt that 
greater transparency of targeted tax benefits can help us simplify and 
improve the fairness of the Federal Tax Code.
  I look forward to the opportunity to develop bipartisan legislation 
to address this issue, and I thank my colleagues for their wonderful 
leadership.
  Mr. FRIST. Mr. President, I ask unanimous consent that the committee-
reported amendment be agreed to, the bill, as amended, be read a third 
time and passed, the motion to reconsider be laid on the table, and 
that any statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment in the nature of a substitute was agreed to.
  The bill (S. 2590), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed.

                          ____________________