Twenty years ago, Congress passed the Federal Funding Accountability and Transparency Act, creating USAspending.gov and giving Americans a way to see where their federal tax dollars go. Led by the late Senator Tom Coburn, an Oklahoma Republican, and then-Senator Barack Obama, an Illinois Democrat, the legislation reflected a principle that ought to transcend party lines: Citizens have a right to know how their government spends their money.
That principle matters more than ever today. The federal government now spends more than $7 trillion a year. Much of that spending is financed through borrowing, but all of it ultimately represents a claim on American taxpayers’ hard-earned money. As Washington continues to expand its commitments and run up deficits, taxpayers deserve to know what they’re getting for their money.
Politicians are often eager to promise new programs and benefits while paying less attention to their cost. Borrowing makes that temptation easier by shifting the bill to future generations. Unlike the taxes deducted from a paycheck or added to a purchase, government spending is largely invisible to the people who finance it.
The range of federal expenditures is extraordinary. Federal money flows to contractors, vendors, state and local governments, and nonprofit grantees. Much of this spending serves legitimate purposes, but the sheer scale and variety make oversight indispensable. Washington has an obligation to ensure that public funds are spent prudently.
USAspending.gov helps meet that obligation. The site allows citizens to identify federal funding recipients, see how much they receive, and trace the money to the agency and program responsible. Making that information accessible can discourage waste, fraud, and abuse while giving taxpayers a common factual basis for debating government priorities. Transparency does not guarantee good decisions, of course, but it makes accountability possible.
The legislation passed by Senators Coburn and Obama also demonstrated how a federal initiative could improve governance at the state level as well. Before 2006, the federal government already collected much of this spending information, but it was very difficult for ordinary citizens to find and understand. This law brought the data together in a more accessible format.
We at the American Legislative Exchange Council adopted the approach as model state policy in 2007. Kansas and Oklahoma were among the first states to follow, with others, from Connecticut to Texas, subsequently adopting similar measures.
The underlying principle is hardly revolutionary. Americans have always had an interest in knowing how their governments spend money. What changed in 2006 was the recognition that technology could make that information far more useful to ordinary taxpayers.
The same principle applies to state and local government. Consider truth-in-taxation laws, which bring transparency and accountability to property tax increases. When local governments propose raising property taxes, these laws require notice to taxpayers and, in many cases, a recorded public vote before tax increases take effect. Residents get an opportunity to understand the proposed increase, question spending priorities, and hold elected officials accountable. The connection between government spending and the taxes required to finance it becomes harder to obscure.
But transparency is a beginning, not an end. The national debt has surpassed $40 trillion, and the Social Security trust fund is projected to face depletion within a number of years. These challenges will require difficult choices about federal spending priorities and the sustainability of existing spending commitments.
Tax revenues have grown substantially, but spending has grown faster. The problem is not simply a shortage of revenue. In fact, it’s not a shortage of revenue at all. It’s government that continues to make commitments without adequately confronting their costs.
The fraud scandal in Minnesota earlier this year offers another reminder that publishing information is not the same as exercising quality oversight. Data must be examined, questions must be asked, and public officials must act when spending cannot be justified. Transparency can expose problems, but it cannot resolve them on its own.
As the nation now marks the 20th anniversary of Coburn-Obama budget transparency, Americans have more information about federal spending at their fingertips than ever before. That is an important achievement. Yet the country still faces mounting debt, persistent deficits, and difficult questions about the proper scope and size of government.
Federal responsibility on fiscal matters begins with knowing where the money goes. It requires taxpayers to demand answers and public officials to provide them. Budget transparency gives Americans essential tools. For that task, our challenge now is to use it not merely to observe the growth of government, but to bring accountability to stop waste, fraud, and overspending at all levels of government.