Bipartisan Bill Aims to Overhaul Federal Aid Spending

In Washington, Congressman Rudy Yakim is taking steps to reform the approximately $150 billion allocated each year in federal aid. This initiative builds on previous efforts to tackle an estimated $2.8 trillion in illegal spending by the federal government since 2003.

Yakim (R-Ind.) has introduced the Evidence-Based Grants Act, which would mandate that federal agencies evaluate how effective their awarded grants truly are.

This move comes after research indicated that just 42% of federal administrators believe their agencies provide quality information regarding the grants.

“Taxpayer money should be used effectively,” Yakim, who co-chairs the What Works Caucus, stated. “We want to fund initiatives that are measurable—where the evidence supports their success.”

He pointed out that only a quarter of federal programs could be deemed effective based on evidence, emphasizing the need for every federal grant to demonstrate its efficacy.

Supported by a variety of representatives, including Rep. Don Bacon (R-Neb.) and Rep. Brittany Pettersen (D-Colo.), the bill aims to enhance government efficiency, though Bacon cautioned that it requires a thoughtful examination of current practices, rather than hasty cuts to programs.

The legislation demands that agency heads define clear purposes for their grants and develop procedures to evaluate their effectiveness. Congress would receive annual reports detailing these efforts.

Pettersen remarked on the importance of federal funding for families, innovation, and the economy, describing the bill as a practical approach to improving government efficiency.

Yakim has previously sought methods to curb government spending, including reintroducing the Improper Payments Transparency Act, which targets the hundreds of billions lost to improper payments annually.

He mentioned that last year, his team looked into improper payment estimates and found them to be quite accurate.

His current proposal would require federal agencies to disclose information about improper payments, their causes, and actions taken to rectify them.

Yakim expressed hope that ongoing controversies in Minnesota could draw attention to governmental issues, urging a timely response to these challenges. “We need to tackle this problem, and the public is clearly voicing their concerns,” he added. “I think now is the right time for a bill like this.”