For federal agencies, Christmas comes in September.
In the final month of the fiscal year, federal agencies scramble to spend what’s left in their annual budgets. Agencies worry that spending a smaller amount than Congress appropriated this year might mean they’ll receive less money next year.
So, rather than admit the department could run efficiently on a smaller budget, federal agencies embark on a shopping spree. This is the “use it or lose it” spending phenomenon – and it happens every year on the taxpayer dime.
Our OpenTheBooks oversight report on the fiscal year 2018 use-it-or-lose-it spending spree quantified $97 billion in contracts signed during the month of September.
In the final seven days of the year, federal agencies blew through $53 billion in contracts – that’s $1 in $10 of all contract spending on the year, in the final week.
The problem isn’t new and it isn’t going away. In fact, it’s getting worse. Our report shows a 15 percent increase in use-it-or-lose-it contracts from last year to this year. From 2015, that’s a 39 percent increase.
In the final month of the fiscal year, federal agencies scramble to spend what’s left in their annual budgets. Agencies worry that spending a smaller amount than Congress appropriated this year might mean they’ll receive less money next year.
So, rather than admit the department could run efficiently on a smaller budget, federal agencies embark on a shopping spree. This is the “use it or lose it” spending phenomenon – and it happens every year on the taxpayer dime.
Our OpenTheBooks oversight report on the fiscal year 2018 use-it-or-lose-it spending spree quantified $97 billion in contracts signed during the month of September.
In the final seven days of the year, federal agencies blew through $53 billion in contracts – that’s $1 in $10 of all contract spending on the year, in the final week.
The problem isn’t new and it isn’t going away. In fact, it’s getting worse. Our report shows a 15 percent increase in use-it-or-lose-it contracts from last year to this year. From 2015, that’s a 39 percent increase.
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