Booker, Kelly Introduce Bicameral Bill to Increase Transparency in Federal Spending

WASHINGTON, D.C. –  U.S. Senator Cory Booker (D-NJ) and Congresswoman Robin Kelly (D-IL-02) introduced the Increasing Transparency and Accountability in Federal Spending Act to include holistic demographic data of federal loans and grants recipients. Currently, data tracking of federal awards such as grants, loans, and contracts does not include the recipients’ ethnicity, race, or sex. Congresswoman Kelly introduced companion legislation in the House.

“Federal contracting is a major economic driver for our country, and for too long veterans, women, and people of color have not benefited from procurement dollars,” said Senator Booker. “Having access to expanded demographic data will close an important gap in Congress’s understanding of how federal dollars are being spent, and what steps we need to take to ensure that taxpayer dollars are used to create opportunities for every American. This legislation will bring greater transparency over government spending, and help us build a more inclusive economy.”

“When Congress and federal agencies are informed with the most holistic data, we can determine whether business owners of color, veterans, and women are able to properly compete for federal dollars,” said Congresswoman Kelly. “I will always strive for transparency when it comes to federal spending. My bill is a first step to tracking federal contracts and loans to identify whether they’re going to historically underinvested communities.”

The bill amends the Federal Funding Accountability and Transparency Act to include race, ethnicity, veteran status, and sex of the highest-paid executive officers and private business owners in the data collected and reported by the Office of Management and Budget. This reporting applies to any entity that receives a federal award, contract, subcontract, grant, subgrant, loan, and other forms of federal financial assistance exceeding $30,000.

The Increasing Transparency and Accountability in Federal Spending Act has been endorsed by the Project on Government Oversight (POGO), Ariel Investments, and the National Association of Securities Professionals.

“Enhancing reporting transparency in government spending is vital to ensuring accountability to the American people. Tracking federal dollars currently faces significant data gaps. As it stands, it is difficult to track whether taxpayer dollars are reaching intended communities and reinvesting back to the American public,” said Janice Luong, Policy Associate at POGO. “The Increasing Transparency and Accountability in Federal Spending Act is a commonsense proposal to equip the government with data to better identify the impacts of its spending and address inequities. POGO is grateful for Senator Booker and Congresswoman Robin Kelly’s committed leadership to holding the government fiscally accountable, with a deliberate emphasis on addressing the needs of underrepresented communities.” 

“It is impossible to measure progress without data,” said John W. Rogers Jr., Founder, Chairman and Co-CEO of Ariel Investments. “Capturing key demographic data will help lawmakers and policymakers understand the effectiveness of efforts to address economic disparities and accelerate inclusive growth through the deployment of federal dollars – and calibrate those practices when needed. What gets measured gets done. I applaud Senator Booker and Congresswoman Kelly for her efforts to ensure the federal government is upholding America’s promise of equal opportunity.”

To read the full text of the bill, click here.