S. 2590

One Hundred Ninth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the third day of January, two thousand and six

An Act

To require full disclosure of all entities and organizations receiving Federal funds.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Federal Funding Accountability

and Transparency Act of 2006’’.

SEC. 2. FULL DISCLOSURE OF ENTITIES RECEIVING FEDERAL

FUNDING.

(a) DEFINITIONS.—In this section:

(1) ENTITY.—The term ‘‘entity’’—

(A) includes, whether for profit or nonprofit—

(i) a corporation;

(ii) an association;

(iii) a partnership;

(iv) a limited liability company;

(v) a limited liability partnership;

(vi) a sole proprietorship;

(vii) any other legal business entity;

(viii) any other grantee or contractor that is not

excluded by subparagraph (B) or (C); and

(ix) any State or locality;

(B) on and after January 1, 2009, includes any subcontractor or subgrantee; and

(C) does not include—

(i) an individual recipient of Federal assistance;

or

(ii) a Federal employee.

(2) FEDERAL AWARD.—The term ‘‘Federal award’’—

(A) means Federal financial assistance and expenditures that—

(i) include grants, subgrants, loans, awards,

cooperative agreements, and other forms of financial

assistance;

(ii) include contracts, subcontracts, purchase

orders, task orders, and delivery orders;

(B) does not include individual transactions below

$25,000; and

(C) before October 1, 2008, does not include credit

card transactions.

(3) SEARCHABLE WEBSITE.—The term ‘‘searchable website’’

means a website that allows the public to—
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(A) search and aggregate Federal funding by any element required by subsection (b)(1);

(B) ascertain through a single search the total amount

of Federal funding awarded to an entity by a Federal

award described in paragraph (2)(A)(i), by fiscal year;

(C) ascertain through a single search the total amount

of Federal funding awarded to an entity by a Federal

award described in paragraph (2)(A)(ii), by fiscal year; and

(D) download data included in subparagraph (A)

included in the outcome from searches.

(b) IN GENERAL.—

(1) WEBSITE.—Not later than January 1, 2008, the Office

of Management and Budget shall, in accordance with this section, section 204 of the E-Government Act of 2002 (Public

Law 107–347; 44 U.S.C. 3501 note), and the Office of Federal

Procurement Policy Act (41 U.S.C. 403 et seq.), ensure the

existence and operation of a single searchable website, accessible by the public at no cost to access, that includes for each

Federal award—

(A) the name of the entity receiving the award;

(B) the amount of the award;

(C) information on the award including transaction

type, funding agency, the North American Industry Classification System code or Catalog of Federal Domestic Assistance number (where applicable), program source, and an

award title descriptive of the purpose of each funding

action;

(D) the location of the entity receiving the award and

the primary location of performance under the award,

including the city, State, congressional district, and

country;

(E) a unique identifier of the entity receiving the award

and of the parent entity of the recipient, should the entity

be owned by another entity; and

(F) any other relevant information specified by the

Office of Management and Budget.

(2) SCOPE OF DATA.—The website shall include data for

fiscal year 2007, and each fiscal year thereafter.

(3) DESIGNATION OF AGENCIES.—The Director of the Office

of Management and Budget is authorized to designate one

or more Federal agencies to participate in the development,

establishment, operation, and support of the single website.

In the initial designation, or in subsequent instructions and

guidance, the Director may specify the scope of the responsibilities of each such agency.

(4) AGENCY RESPONSIBILITIES.—Federal agencies shall

comply with the instructions and guidance issued by the

Director of the Office of Management and Budget under paragraph (3), and shall provide appropriate assistance to the

Director upon request, so as to assist the Director in ensuring

the existence and operation of the single website.

(c) WEBSITE.—The website established under this section—

(1) may use as the source of its data the Federal Procurement Data System, Federal Assistance Award Data System,

and Grants.gov, if all of these data sources are searchable

through the website and can be accessed in a search on the

website required by this Act, provided that the user may—
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(A) specify such search shall be confined to Federal

contracts and subcontracts;

(B) specify such search shall be confined to include

grants, subgrants, loans, awards, cooperative agreements,

and other forms of financial assistance;

(2) shall not be considered in compliance if it hyperlinks

to the Federal Procurement Data System website, Federal

Assistance Award Data System website, Grants.gov website,

or other existing websites, so that the information elements

required by subsection (b)(1) cannot be searched electronically

by field in a single search;

(3) shall provide an opportunity for the public to provide

input about the utility of the site and recommendations for

improvements;

(4) shall be updated not later than 30 days after the award

of any Federal award requiring a posting; and

(5) shall provide for separate searches for Federal awards

described in subsection (a) to distinguish between the Federal

awards described in subsection (a)(2)(A)(i) and those described

in subsection (a)(2)(A)(ii).

(d) SUBAWARD DATA.—

(1) PILOT PROGRAM.—

(A) IN GENERAL.—Not later than July 1, 2007, the

Director of the Office of Management and Budget shall

commence a pilot program to—

(i) test the collection and accession of data about

subgrants and subcontracts; and

(ii) determine how to implement a subaward

reporting program across the Federal Government,

including—

(I) a reporting system under which the entity

issuing a subgrant or subcontract is responsible

for fulfilling the subaward reporting requirement;

and

(II) a mechanism for collecting and incorporating agency and public feedback on the design

and utility of the website.

(B) TERMINATION.—The pilot program under subparagraph (A) shall terminate not later than January 1, 2009.

(2) REPORTING OF SUBAWARDS.—

(A) IN GENERAL.—Based on the pilot program conducted under paragraph (1), and, except as provided in

subparagraph (B), not later than January 1, 2009, the

Director of the Office of Management and Budget—

(i) shall ensure that data regarding subawards

are disclosed in the same manner as data regarding

other Federal awards, as required by this Act; and

(ii) shall ensure that the method for collecting

and distributing data about subawards under clause

(i)—

(I) minimizes burdens imposed on Federal

award recipients and subaward recipients;

(II) allows Federal award recipients and

subaward recipients to allocate reasonable costs

for the collection and reporting of subaward data

as indirect costs; and
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(III) establishes cost-effective requirements for

collecting subaward data under block grants, formula grants, and other types of assistance to State

and local governments.

(B) EXTENSION OF DEADLINE.—For subaward recipients

that receive Federal funds through State, local, or tribal

governments, the Director of the Office of Management

and Budget may extend the deadline for ensuring that

data regarding such subawards are disclosed in the same

manner as data regarding other Federal awards for a period

not to exceed 18 months, if the Director determines that

compliance would impose an undue burden on the

subaward recipient.

(e) EXCEPTION.—Any entity that demonstrates to the Director

of the Office of Management and Budget that the gross income,

from all sources, for such entity did not exceed $300,000 in the

previous tax year of such entity shall be exempt from the requirement to report subawards under subsection (d), until the Director

determines that the imposition of such reporting requirements will

not cause an undue burden on such entities.

(f) CONSTRUCTION.—Nothing in this Act shall prohibit the Office

of Management and Budget from including through the website

established under this section access to data that is publicly available in any other Federal database.

(g) REPORT.—

(1) IN GENERAL.—The Director of the Office of Management

and Budget shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee

on Government Reform of the House of Representatives an

annual report regarding the implementation of the website

established under this section.

(2) CONTENTS.—Each report submitted under paragraph

(1) shall include—

(A) data regarding the usage and public feedback on

the utility of the site (including recommendations for

improving data quality and collection);

(B) an assessment of the reporting burden placed on

Federal award and subaward recipients; and

(C) an explanation of any extension of the subaward

reporting deadline under subsection (d)(2)(B), if applicable.

(3) PUBLICATION.—The Director of the Office of Management and Budget shall make each report submitted under

paragraph (1) publicly available on the website established

under this section.

SEC. 3. CLASSIFIED INFORMATION.

Nothing in this Act shall require the disclosure of classified

information.
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SEC. 4. GOVERNMENT ACCOUNTABILITY OFFICE REPORTING

REQUIREMENT.

Not later than January 1, 2010, the Comptroller General shall

submit to Congress a report on compliance with this Act.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.