Federal Subaward Reporting System Modernization and Expansion Act
- Bill Number
- H.R. 519
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-01-16: Referred to the House Committee on Oversight and Government Reform.
- Last Updated
- 2025-02-15T14:53:24Z
AI-Generated Summary
Purpose
The Federal Subaward Reporting System Modernization and Expansion Act (H.R. 519) aims to improve the transparency, accuracy, and efficiency of tracking subawards—secondary grants or contracts made by initial recipients of federal funds—under the Federal Funding Accountability and Transparency Act of 2006 (FFATA). It mandates reviews, updates, and expansions to the existing FFATA subaward reporting system to ensure better public access to how federal money is distributed beyond the first level of recipients.
Key Provisions
- Report by Inspector General: Within 180 days of enactment, the Inspector General of the General Services Administration (GSA) must submit a congressional report reviewing the FFATA subaward reporting system. This includes identifying issues causing inaccurate or incomplete data, assessing its effectiveness (e.g., data accuracy, reporting consistency across agencies, compliance burden on recipients, public accessibility, and enforcement), and providing specific improvement recommendations.
- Plan to Update the System for First-Tier Subawards: Within 1 year of enactment, and annually until fully implemented, the GSA Administrator—consulting the Office of Management and Budget (OMB) Director and Treasury Secretary—must submit and implement a plan to modernize the system. The plan focuses on first-tier subawards (direct subawards from prime federal award recipients) and includes:
- Steps to enhance data accuracy and completeness.
- Standardized reporting rules across federal agencies, including a certification requirement for prime recipients confirming no subawards were made.
- Measures to lessen the reporting burden on recipients.
- Ways to make data more accessible to the public and stakeholders.
- Stronger enforcement to ensure compliance with FFATA.
- Expansion to Second-Tier Subawards:
- Starting 1 year after the first update plan is submitted, federal agency heads must collect data on the first two tiers of subawards, including details on the final recipients.
- Within 1 year of enactment, the GSA Administrator—consulting the OMB Director—must issue new reporting rules and develop an implementation plan with stakeholder and public input, covering similar improvements as above but extended to second-tier data.
- Federal agencies must begin implementing this expansion within 2 years of enactment.
- Annual congressional reports on the expansion plan until fully implemented.
- Definitions: Key terms like "Administrator" (GSA head), "Director" (OMB head), "Federal agency," "Federal award," "Secretary" (Treasury head), and "FFATA subaward reporting system" are defined by reference to FFATA.
Significant Changes to Existing Law
- Expands FFATA's reporting scope from only first-tier subawards to the first two tiers, requiring data on deeper levels of fund distribution (e.g., sub-subawards).
- Introduces mandatory certification for prime recipients if no subawards occur, standardizes requirements across agencies (previously inconsistent), and adds explicit focuses on reducing recipient burden, improving public access, and strengthening enforcement—elements not as detailed in the original FFATA.
- Shifts some responsibilities to GSA for oversight and planning, with input from OMB and Treasury, formalizing a more structured update and expansion process.
Potential Impacts
- On Government Agencies: Increases administrative workload for data collection and implementation (e.g., agencies must report on two tiers within 2 years), but standardizes processes to potentially streamline long-term compliance. Enhances inter-agency coordination via GSA-led plans.
- On Citizens and Stakeholders: Improves public transparency by making subaward data more accurate, timely, and accessible (e.g., via easier online access to final recipient details), allowing better oversight of federal spending. Reduces reporting burdens on recipients like businesses or nonprofits, potentially easing compliance costs.
- On International Relations: Minimal direct impact, though better tracking of subawards in international aid or contracts could indirectly support accountability in global programs.
Main Stakeholders Affected
- Federal Agencies: All agencies awarding federal funds (e.g., heads must collect and report expanded data).
- Award Recipients: Prime recipients (initial federal fund getters) and subawardees (including second-tier), who face new certification and reporting rules but benefit from reduced burdens.
- Government Oversight Bodies: GSA (leads implementation), OMB (consults on rules), Treasury (consults on plans), and the GSA Inspector General (conducts initial review).
- Public and Stakeholders: Congress (receives reports), taxpayers, watchdog groups, and researchers, who gain better access to spending data.
- Broader Entities: Nonprofits, contractors, and state/local governments receiving subawards, affected by enforcement and standardization.
Notable Legal, Constitutional, or Political Implications
- Legal: Builds directly on FFATA without overriding it, using existing definitions and authorities; introduces enforceable timelines and certifications, which could lead to penalties for non-compliance under current federal grant rules. No new funding is authorized, so implementation relies on existing agency budgets.
- Constitutional: Aligns with Congress's spending power (Article I, Section 8) by enhancing oversight of federal expenditures; promotes transparency without infringing on free speech or due process, as it focuses on administrative reporting.
- Political: Reinforces bipartisan interest in government accountability (introduced by a mix of Republicans and Democrats), potentially reducing waste or fraud perceptions in federal spending. Could spark debates on administrative burdens if implementation costs rise, but emphasizes stakeholder input to balance efficiency and transparency.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Langworthy, Nicholas A. [R-NY-23]
Cosponsors (6)
Rep. Houlahan, Chrissy [D-PA-6], Rep. Lawler, Michael [R-NY-17], Rep. Davis, Donald G. [D-NC-1], Rep. Craig, Angie [D-MN-2], Rep. Guest, Michael [R-MS-3], Rep. Hageman, Harriet M. [R-WY-At Large]
Recent Actions
- 2025-01-16: Referred to the House Committee on Oversight and Government Reform.
- 2025-01-16: Introduced in House
- 2025-01-16: Introduced in House
Bill Versions
- Federal Subaward Reporting System Modernization and Expansion Act — issued 2025-01-16 — PDF (6 pages)