Walberg Bill to Reduce Wasteful Spending Signed Into Law
Washington, D.C. – Yesterday, President Obama signed into law Congressman Tim Walberg's (MI-07) bipartisan bill to increase government accountability and reduce wasteful spending. The Grants Oversight and New Efficiency (GONE) Act, introduced along with Congresswoman Brenda Lawrence (MI-14) in the House, requires federal agencies to take action to identify thousands of expired grant accounts with a zero balance that should be closed out.
"As the debt clock ticks higher and higher, it is imperative that the federal government starts living within its means. The GONE Act is one common sense way to reduce wasteful spending and ensure taxpayer dollars are not languishing in expired grant accounts or squandered maintaining empty accounts. I'm proud President Obama signed my bill into law, and I will continue championing bipartisan solutions to get Washington's runaway spending under control," said Walberg.
In 2012, the Government Accountability Office (GAO) released a report entitled "Grants Management: Action Needed to Improve the Timeliness of Grant Closeouts by Federal Agencies," which evaluated the grant closeout process. The GAO report identified nearly one billion dollars remaining in undisbursed funds within expired grant accounts. It is also estimated that federal agencies spend $2 million dollars per year to maintain accounts with no funds in them.
The Senate companion bill, S. 1115, was introduced by Senators Deb Fischer (R-NE) and Joe Manchin (D-WV).
More Background on the GONE Act