STOPPING WASTEFUL AND UNNECESSARY SPENDING - GovInfo
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STOPPING WASTEFUL AND
UNNECESSARY SPENDING
The President’s pro-growth policies have set RESIZING THE BUREAUCRACY
in motion one of the strongest economies in TO FIT THE CONSTITUTION
American history. The Budget ensures that the The Federal Government was envisioned by
U.S. economy can remain resilient and that the the Founders to be one of limited powers, pro-
United States maintains its global leadership by tecting the unalienable rights of individuals.
prioritizing funding for the most vital functions However, over the past century, the size and
of Government. However, a bloated Federal scope of the Federal Government has overrun
Government, with duplicative programs and these constitutional guardrails. Today, there are
wasteful spending, remains a critical threat to more than two million Federal civilian employ-
America’s future. ees with millions more who are paid entirely by
Each year, billions of taxpayer dollars are Government contracts and grants.
wasted on programs that are duplicative, unnec- Taxpayers have repeatedly watched the
essary, and ostensibly without priority. This has Federal Government respond to any problem
reduced the ability of the Federal Government with the creation of new agencies, new programs,
to meet its constitutional responsibilities to the and new spending initiatives, instead of reor-
American people. ganizing, or repurposing what is already avail-
As with the Administration’s past Budgets, the able within the vast bureaucracy. As a result,
2021 Budget continues to propose strategic reduc- there are hundreds of programs in the Federal
tions in spending. In fact, the Administration’s Government that have outlived their mission,
Budgets have put forward more spending reduc- duplicate efforts, or operate below peak efficien-
tions than any other in history. This effort is the cies because of fragmented responsibilities be-
foundation of a commitment to the American tween agencies. This wasteful spending has been
people to restore trust in their Government. a contributing factor to the Government’s deteri-
orating fiscal health as reflected in the Financial
While the Administration has prioritized the Report of the United States Government.
core responsibility of national security by re-
building its great military, securing America’s The Administration believes the American
borders, and advancing emerging technologies, people deserve better from their Government.
continued waste across the Government must be
addressed. The Budget looks to reduce wasteful DEFINING THE PROBLEM
and unnecessary spending, and put in place pro- There are universal tenets on which broad
cedures to keep a vigilant eye on fraud, abuse, bipartisan action to reduce spending should be
and negligence with taxpayer dollars. based:
1314 Stopping Wasteful and Unnecessary Spending
First, all Government programs should have a would save $48 billion in 2021.
direct, clear, and immediate purpose and not du-
plicate other programs. ELIMINATING DUPLICATIVE PROGRAMS
Second, all Federal spending should provide In May 2019, the U.S. Government
a necessary public service and serve a clear na- Accountability Office released its ninth annual
tional interest. American taxpayers deserve a report with recommendations to reduce overlap,
Government that is not spending taxpayer dol- duplication, and fragmentation in Federal pro-
lars to support a Muppet Retrospectacle in New grams. This annual report identifies opportuni-
Zealand or millions to prepare religions for dis- ties for cost savings, and a better customer ex-
covering extraterrestrial life (which are real, and perience for the American people, through three
unfortunate, examples of wasteful spending). types of common inefficiencies in Government:
Third, all spending should fund its intended Fragmentation: when more than one Federal
purpose and reach its intended recipient. That is, agency, or more than one component within an
there should not be improper payments that re- agency, is involved in the same broad area of na-
sult in monetary loss to the Government, such as tional need and there are opportunities for im-
when beneficiaries receive an incorrect amount, proving service delivery.
or deceased individuals continue to receive
Overlap: when multiple agencies or programs
assistance.
have similar goals, engage in similar activities or
Fourth, the Government should be frugal and strategies, or target similar beneficiaries.
strive to avoid overpaying for items.
Duplication: when two or more agencies are
Fifth, the Federal Government should spend engaged in the same activities or provide the
only the amount necessary to achieve intended same services to the same beneficiaries.
goals, and all expenditures should be assessed on
The Budget addresses many of these inef-
that basis.
ficiencies by reforming, reducing funding for,
Sixth, each dollar spent should be measured and in some cases eliminating these programs.
by its effect on actual outcomes. Examples include:
• U. S. Department of Agriculture (USDA)
CATEGORIES OF WASTE REQUIRING ACTION
Programs that Provide Assistance to the
Using these guidelines, the Budget attempts Private Sector, Do Not Require Matching
to begin restraining and refocusing taxpayer re- Funds, and Duplicate Other Federal
sources in the following five ways: Assistance. For example, USDA has the au-
thority to make crop loss payments under both
• Eliminating Duplicative Programs; a disaster assistance program and the crop in-
• Eliminating Programs with No Proper surance program, masking market forces and
Federal Role; allowing some farmers to receive payments in
excess of 100 percent of their loss.
• Putting an End to Improper Payments;
• Overlapping Elementary and Second-
• Conducting Oversight of Spending ary Programs. The Budget proposes to
Categories; and consolidate 29 overlapping elementary and
secondary programs into a new block grant
• Stopping Improper End-of-Year Spending. to States and school districts. This consolida-
tion would allow those closest to students to
The Budget’s Major Savings and Reforms vol-
meet the needs of their students and families.
ume describes the major savings and reform pro-
While increasing flexibility, the new block
posals included in the Budget. In total, the dis-
grant also saves taxpayers $4.7 billion.
cretionary proposals highlighted in the volumeBUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2021 15
• Disjointed Workforce Programs. The resources and mitigates unnecessary risk to
Federal Government spends $19 billion per taxpayers.
year on more than 40 workforce development
programs across 15 agencies. The Budget be- • The Federal Emergency Management
gins the work of rationalizing this convoluted Agency’s (FEMA) Continuing Training
system by eliminating ineffective, unproven, Grants. The grants, which support partners
or redundant job training programs. to develop and deliver training to prepare for
disasters, among other grant programs, are
• Duplicative Health Professional proposed for elimination because they are du-
Training. The Budget eliminates funding plicative of other Federal grant programs or
for 14 health professions training programs other State or local programs, and are primar-
in the Department of Health and Human ily the responsibilities of States and localities.
Services. There are 91 Federal programs that
support the training of healthcare profes- • USDA Rural Business Service Pro-
sionals, across the Departments of Defense, grams. These programs have spent over a
Education, Health and Human Services, and billion dollars during the last 10 years sup-
Veterans Affairs. porting already successful businesses that
could qualify for private sector capital. For
• Readily Available English Learning example, the Value-Added Producer Grant
Materials. Several U.S. institutes of higher program has provided over $3 million to win-
learning offer free or low-fee English learn- eries and vineyards in 2018, including grant
ing materials online. The Budget proposes funding to promote wine slushies.
to eliminate nearly $2 million for duplicative
Government-funded online English-language • The Department of Housing and Urban
learning programs and materials for foreign Development’s (HUD) HOME Investment
audiences. The U.S. Agency for Global Media Partnerships Program. The Budget elimi-
spends $1.5 million on Voice of America’s nates the HOME program, recognizing a
English Learning programming, which pro- greater role for State and local governments
duces relatively low-quality educational and the private sector in addressing afford-
videos. Similarly, the State Department cre- able housing needs.
ates and runs Massive Open Online Courses
for English learning. ELIMINATING PROGRAMS WITH
NO PROPER FEDERAL ROLE
There are also Federal programs that duplicate There are also programs where the Federal
the efforts and expenditures of State and local Government’s role is unclear and unnecessary.
governments or the private sector. For example, For example:
the Budget proposes to eliminate:
• Applied Energy Programs. Private sector-
• The Department of Commerce’s led research and development (R&D) tends
Economic Development Administra- to focus on near-term cost and performance
tion Grant Programs. The programs are improvements where the certainty of profit
duplicative of other economic development generation or successful market entry are
programs within the Federal Government, as greatest. The Federal role in energy R&D
well as State and local efforts. is strongest at the earlier stages, where the
• Power Marketing Administration greatest motivation is the generation of new
Electricity Transmission Assets. The vast knowledge and the proving of novel scien-
majority of the Nation’s electricity needs are tific or technical concepts. While progress
met through for-profit investor owned utilities. has been made over the past three years, the
Increasing the private sector’s role encour- Budget continues to refocus these programs
ages a more efficient allocation of economic on earlier-stage R&D energy challenges.16 Stopping Wasteful and Unnecessary Spending
• Education and Research Centers PUTTING AN END TO IMPROPER PAYMENTS
(ERCs) within the National Institute
Every year, the Federal Government makes im-
for Occupational Safety and Health.
proper payments. This is an obvious form of waste-
The ERCs were created in the 1970s to de-
ful spending, and it costs taxpayers over $70 billion
velop occupational health and safety training
per year. While the Government has spent years
programs in academic institutions. Almost
working to eliminate this issue, more must be done
50 years later, the majority of public health
to increase appropriate and careful stewardship of
schools include this coursework, and many
taxpayer funds.
academic institutions have developed special-
izations in these areas. The Budget would Prior to this Administration, the Federal
stop directing Federal funding to support aca- Government failed to properly prioritize its ef-
demic salaries, stipends, and tuition and fee forts regarding eliminating improper payments.
reimbursements for occupational health pro- For instance, Agencies spent more time comply-
fessionals at universities. ing with low-value compliance activities than re-
searching the underlying causes of improper pay-
• Department of the Interior (DOI)
ments and building the capacity to help prevent
Highlands Conservation Act Grants. The
future improper payments. Although working to
Budget eliminates grant funding ($20 million
reduce all improper payments is an important
in 2019) under the Highlands Conservation
goal, the Administration has prioritized efforts to
Act for non-Federal land acquisition projects
end the most egregious abuses, such as improper
in highland States. These grants serve no
benefits sent to deceased persons that cost tax-
clear Federal purpose and divert limited DOI
payers over $800 million per year.
funding from managing national parks, ref-
uges, and public lands. The Getting Payments Right Cross-Agency
Priority Goal is a key part of the President’s
• Funding for the National Park Service’s
Management Agenda. This agenda is focused on
Save America’s Treasures Grants. The
new strategies to reduce monetary loss because
grants are used to support preservation of
protecting taxpayer money and making sure it is
non-Federal historic buildings, arts, and pub-
serving its intended purpose is a fundamental re-
lished works.
sponsibility of the Federal Government. Progress
• The National Endowment for the Arts toward this goal has paved the road for improved
(NEA)/National Endowment for the prevention of improper payments by: improv-
Humanities (NEH). Activities funded by ing the transparency of payment integrity data
NEA/NEH are not considered core Federal on https://paymentaccuracy.gov; identifying 160
responsibilities, and make up only a small new data sets currently being used by Federal
fraction of the billions spent each year by arts programs for pre-check of payment eligibility;
and humanities nonprofit organizations. identifying root causes of monetary losses across
57 programs; and identifying eight mitigation
• The Corporation for National and strategies with potential for broad impact across
Community Service (CNCS) (including multiple programs.
AmeriCorps). Funding paid volunteerism
and subsidizing the operation of nonprofit or- The Budget provides many opportunities for
ganizations is outside the proper role of the the Congress to achieve maximum savings to
Federal Government. To the extent these the Government, while also considering and bal-
activities have value, they should be support- ancing costs, risks, and program performance.
ed by the nonprofit and private sectors and Families and small businesses could not afford
not with Federal subsidies provided through to operate in the careless way that the Federal
the complex Federal grant structure run by Government has been operating. CEOs at large
CNCS. companies have lost their jobs for similar care-
lessness, and rightfully so. The AdministrationBUDGET OF THE U. S. GOVERNMENT FOR FISCAL YEAR 2021 17
believes that Government can do better with eliminate 31,000 duplicate contracts, all while
American’s hard-earned tax dollars. the Administration continues to exceed annual
small business contracting goals.
CONDUCTING OVERSIGHT OF
SPENDING CATEGORIES STOPPING IMPROPER END-
OF-YEAR SPENDING
The Administration has begun identifying
spending categories that often become a catchall September, the end of the Federal fiscal year, is
for wasteful spending. These include: traditionally characterized by a surge in spend-
ing. Studies of Federal spending have shown that
• Travel; one out of every nine dollars in Federal contracts
• Workshops and Conferences; was spent in the last week of the fiscal year. On
average, the Federal Government spends $3.2 bil-
• Subscriptions; lion a day in contracts. In the last two days of
2018 alone 1, agencies spent $10 billion a day.
• Receptions and Refreshments;
According to data from the nonprofit group,
• Marketing; and Open the Books, of the $97 billion spent by 67
Federal agencies in a “Use It or Lose It” spending
• Entertainment.
spree in the final two days of 2018, expenditures
Not every expenditure within these categories included:
is wasteful, but experience has demonstrated
• china tableware ($53,004);
that additional scrutiny is necessary. If an agen-
cy wants to spend taxpayer dollars on motiva- • alcohol ($308,994);
tional speakers or grants to already successful
businesses, it should be prepared to substantiate • golf carts ($673,471);
its request and verify that it is the best and most
efficient use of money. • musical equipment, including pianos, tu-
bas, and trombones ($1.7 million);
Of the $550 billion spent annually through
Federal acquisition, over $350 billion is for com- • lobster tails and crab ($4.6 million); and
mon goods and services such as software, cell- • workout and recreation equipment ($9.8
phones, and information technology. Federal million).
agencies have traditionally purchased goods and
services in a fragmented manner, depriving tax- While there are many reasons that last-minute
payers of the benefits of the U. S. Government’s po- improper spending occurs, there are currently
sition as the largest buyer in the world. Category misaligned incentives in the budgeting process
management is a commercial best practice for which encourages this practice. Agencies recog-
buying common goods and services that has been nize that if significant balances are left in their
adopted by the Administration. Organizing com- accounts at the end of a fiscal year, the Congress
mon purchases using category management prin- will likely reduce their topline budget in future
ciples provides agencies with the data and tools fiscal years.
they need to comparison shop, obtain volume
discounts, and negotiate better deals so taxpayer While some end of year spending is legitimate,
dollars can be spent on caring for veterans and the Administration is committed to closely scruti-
families. nizing how it spends money at the end of the fis-
cal year, and curtailing wasteful and questionable
Applying such leading category manage- purchases. Americans deserve a Government
ment practices has allowed the Government to that is meticulous at avoiding wasteful and un-
save taxpayers over $27 billion since 2017 and necessary spending.
1
https://www.openthebooks.com/the-federal-governments-use-it-or-
lose-it-spending-spree--open-the-books-oversight-report/You can also read
