II 

110TH CONGRESS 

1ST SESSION S. 1134 

To maximize transparency and accountability for direct appropriations to 

non-Federal entities, including those instances when Congress appropriates funds to a Federal agency specifically in order to contract with 

a congressionally identified non-Federal entity. 

IN THE SENATE OF THE UNITED STATES 

APRIL 17, 2007 

Mr. NELSON of Nebraska (for himself and Mr. BROWNBACK) introduced the 

following bill; which was read twice and referred to the Committee on 

Homeland Security and Governmental Affairs 

A BILL 

To maximize transparency and accountability for direct appropriations to non-Federal entities, including those instances when Congress appropriates funds to a Federal 

agency specifically in order to contract with a congressionally identified non-Federal entity. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Transparency in Fed5 eral Funding Act of 2007’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) Article I of the Constitution provides Con2 gress with the power to set the spending policies of 

3 the United States. This power includes the authority 

4 to direct funding to identified entities within the 50 

5 States and territories of this Nation and to direct 

6 executive branch agencies to enter into contracts 

7 with identified entities within these same States and 

8 territories. As such, Congress expects executive 

9 branch agencies to comply with congressional fund10 ing directives. 

11 (2) Our system of Government has checks and 

12 balances, and it has come to the attention of Con13 gress that executive branch departments and their 

14 component agencies occasionally retain a portion of 

15 funds appropriated by Congress to non-Federal enti16 ties, including those instances when Congress appro17 priates funds to a Federal agency specifically in 

18 order to contract with a congressionally identified 

19 non-Federal entity. 

20 (3) Members of Congress are required to pro21 vide justification for earmarks and, likewise, the ex22 ecutive branch should provide justification as to why 

23 earmarked funds are used for another purpose. 

24 (4) Our constituents are entitled to know, in 

25 advance, whether they will receive the full amount of 


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1 an appropriation, or only a percentage of it, so they 

2 can plan accordingly. 

3 (5) The practice of agency take-downs results 

4 in increased and unintentional spending in the Fed5 eral bureaucracy. 

6 (6) The practice of widespread and unaccount7 able agency take-downs is likely to result in artifi8 cially inflated appropriations requests in order to ac9 count for the agency take-downs. 

10 (7) Full transparency with respect to agency 

11 take-downs will lead to better decision-making by 

12 Members of Congress when allocating constituent re13 quest amongst departments, agencies, and accounts. 

14 (8) Accountability and transparency are vitally 

15 important to the legislative process. 

16 SEC. 3. EARMARK. 

17 In this Act— 

18 (1) the term ‘‘administrative take-down’’ means 

19 any action by an agency administering a congres20 sionally directed earmark which results in the con21 gressionally directed recipient of such earmark or 

22 the congressionally directed recipient of a Govern23 ment contract receiving less than 100 percent of 

24 such earmark or contract; 


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1 (2) the term ‘‘assistance’’ means budget author2 ity, contract authority, loan authority, and other ex3 penditures; and 

4 (3) the term ‘‘earmark’’ means a legislative pro5 vision or report language included primarily at the 

6 request of a Senator, Member of the House, Dele7 gate, or Resident Commissioner, that provides, au8 thorizes, or recommends a specific amount of discre9 tionary budget authority, credit authority, or other 

10 spending authority for a contract, loan, loan guar11 antee, grant, loan authority, or other expenditure 

12 with or to an entity, or targeted to a specific state, 

13 locality, or Congressional district, other than 

14 through a statutory or administrative formula driven 

15 or competitive award process. 

16 SEC. 4. DISCLOSURE AND REPORTING. 

17 (a) IN GENERAL.—Not later than January 31 of 

18 each year, each cabinet-level department and independent 

19 agency that administers a program that contained an ear20 mark in the preceding year shall report to Congress dis21 closing whether any portion of the earmarked funds in the 

22 preceding year were retained by the agency or any other 

23 organization tasked with distributing them. 


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1 (b) CONTENTS.—A report required by this section 

2 shall include an accounting of all funds retained includ3 ing— 

4 (1) how much money and the percentage re5 tained; 

6 (2) the purpose for which these retained funds 

7 were used; 

8 (3) a justification for the purpose for which 

9 these funds were spent; and 

10 (4) the authority by which the agency retained 

11 the funds. 

Æ 


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