Tax Dollar Accountability Act
- Bill Number
- H.R. 9240
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-06-10: Referred to the House Committee on Oversight and Government Reform.
- Last Updated
- 2026-06-29T17:38:09Z
AI-Generated Summary
Summary of H.R. 9240: Tax Dollar Accountability Act
Purpose
This legislation aims to enhance oversight of federal funds by granting the Comptroller General of the United States (head of the Government Accountability Office) broader access to records from states and localities that receive such funds, in order to conduct audits, investigations, and evaluations of how those funds are received, spent, and managed.
Key Provisions
- Access upon request: Any state, local government, or municipality receiving federal funds (directly or indirectly) must provide the Comptroller General with access to budgets, financial records, expenditure reports, contracts, grants, subgrants, and related documents needed for oversight purposes, regardless of other laws.
- Annual reporting requirement: Within 120 days after the end of each fiscal year, states receiving federal funds must proactively supply the described records for the prior fiscal year.
- Enforcement mechanism: If a state does not provide the required access, the Director of the Office of Management and Budget may withhold, suspend, or place conditions on federal funding to that state until compliance occurs.
Significant Changes to Existing Law
This bill introduces new mandatory access rights for the Comptroller General to state-level records tied to federal funding, which expands beyond typical current limitations on federal auditors' reach into state documents. It adds an annual proactive disclosure obligation and ties non-compliance directly to potential loss or restriction of federal funds, creating a stronger enforcement tool than previously available.
Potential Impacts
- On government agencies: Strengthens the Government Accountability Office's ability to review federal spending at the state level and empowers the Office of Management and Budget with new leverage over funding flows.
- On states and localities: Requires ongoing cooperation with federal audits, potentially increasing administrative burdens for record-keeping and response to requests.
- On citizens: Aims to improve transparency and accountability for taxpayer dollars spent through state channels, though it does not directly alter citizen rights or benefits.
- No notable effects on international relations are outlined in the bill.
Main Stakeholders Affected
- State governments and municipalities that receive federal funding.
- The Comptroller General and Government Accountability Office.
- The Office of Management and Budget.
- Federal agencies that distribute funds to states.
- Taxpayers, through indirect benefits of improved fiscal oversight.
Notable Legal, Constitutional, or Political Implications
The bill may raise questions about federal authority over state operations under principles of federalism, as it conditions federal funding on state compliance with record access. It does not appear to directly conflict with constitutional provisions but could invite legal challenges regarding the scope of congressional spending power. Politically, it emphasizes greater federal scrutiny of state use of public funds without creating new programs or entitlements.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-06-10: Referred to the House Committee on Oversight and Government Reform.
- 2026-06-10: Introduced in House
- 2026-06-10: Introduced in House
Bill Versions
- Tax Dollar Accountability Act — issued 2026-06-10 — PDF (2 pages)