Senators Seek Answers from High-Spending Federal Agencies on ‘Use It or Lose It’ Spending

Senators Seek Answers from High-Spending Federal Agencies on ‘Use It or Lose It’ Spending

The following press release was published by the U.S. Senate Committee on Homeland Security and Governmental Affairs on Aug. 29, 2018. It is reproduced in full below.

Dear Mr. Norquist:

We respectfully write to request information about the Department of Defense’s plans to address so-called “use it or lose it" spending at the end of the federal fiscal year. Historically, federal agencies increase spending during the fourth quarter of the fiscal year.[1] Although not a new phenomenon,[2] use it or lose it spending can lead to waste and abuse of taxpayer dollars. The Committee has previously raised concerns about the potential for waste and abuse the practice presents.[3]

Last fiscal year, agencies spent a total of $11.1 billion in the final week of the fiscal year[4]-almost five times higher than the average weekly spending during the rest of the year.[5] Further, research suggests that “spending that originates in the last week of the fiscal year has 2.3 to 5.6 times higher odds of having a lower quality score."[6] According to a recent report, with only limited time left in the current fiscal year, eight of the top ten highest-spending federal agencies have not used as much as 40 percent of their budgets.[7] Some observers have raised concerns that this year’s annual spending binge could be the biggest yet.[8]

We respectfully request that you arrange for a staff-level briefing about how the Department of Defense will ensure that its spending in the last quarter of this fiscal year is not wasteful or abusive. Please provide this briefing by Sept. 14, 2018.

The Committee on Homeland Security and Governmental Affairs is authorized by Rule XXV of the Standing Rules of the Senate to investigate “the efficiency, economy, and effectiveness of all agencies and departments of the Government."[9] Additionally, S. Res. 62 (115th Congress) authorizes the Committee to examine “the efficiency and economy of all branches of the Government...."[10]

If you have any questions related to this letter, please ask your staff to contact Elliott Walden of Chairman Johnson’s staff at (202) 224-4751, Sarah Garcia of Ranking Member McCaskill’s staff at (202) 224-2627, Greg McNeill of Chairman Paul’s staff at (202) 224-4343, or Zachary Schram of Ranking Member Peters’ staff at (202) 224-6221. Thank you for your attention to this matter.

Sincerely,

Ron Johnson Rand Paul, M.D.

Chairman Chairman

Committee on Homeland Security Subcommittee on Federal Spending

and Governmental Affairs Oversight & Emergency Management

Committee on Homeland Security

and Governmental Affairs

Claire McCaskill Gary Peters

Ranking Member Ranking Member

Committee on Homeland Security Subcommittee on Federal Spending

and Governmental Affairs Oversight & Emergency Management

Committee on Homeland Security

and Governmental Affairs

Source: U.S. Senate Committee on Homeland Security and Governmental Affairs

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