Transparency and the Economic Recovery Act

Legislators are learning of the new transparency rules requiring states to track how all federal funds are being spent and the number of jobs that spending creates as a part of the 2009 American Recovery and Reinvestment Act. While every reporting detail has not been specified by the federal government yet, it is clear that both the enacted legislation and likely regulations will require states to establish transparency in how they are distributing funds far beyond what most states are currently requiring. The bill would require all recipients, including states but not individuals, of recovery funds (grants, loans, and contracts) from a federal agency to report quarterly the following:

• Total amount of recovery funds received from the agency.
• Amount of funds expended or obligated to projects.
• A detailed list of all projects for which recovery funds were expended, including:
         • The name and description of the project.
         • An evaluation of the completion status of the project.
         • An analysis of the number of jobs created or retained by the project.
         • Detailed information on any subcontracts or subgrants, including data elements required by the Federal Funding Accountability and Transparency Act of 2006 - that is, elements that are required to be reported on USASpending.gov.

The Progreesive States Network will hold a conference call to discuss with state legislators around the country how transparency can save money for our own budgets while strengthening trust in government.