September 9, 2016

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WASHINGTON, D.C. – Today, U.S. Senator Rand Paul (R-KY) invited federal employees to contact his Federal Spending Oversight Subcommittee if they see “use it or lose it” spending sprees as the federal government concludes its fiscal year that cause waste, mismanagement, or other abuses of taxpayer funds. “Use it or lose it” spending has become notorious and widespread as agencies use up their existing budget authority to try to justify higher funding levels. The fiscal year ends September 30.

A study by the National Bureau of Economic Research found that as the fiscal year expires, money even shifts time zones to gain extra hours for last-minute spending.

“In a time of ever-expanding government, ‘use it or lose it’ waste provides us with some of the most outrageous examples of how out of control spending has become,” said Dr. Paul. “Hearing from those witnessing this abuse of taxpayer funds firsthand will help us more specifically target the problem and generate pressure to reform the budget process.”

Current law allows an agency’s Inspector General to pay bonuses up to $10,000 of savings realized when a federal employee identifies waste, fraud, or mismanagement of funds. Dr. Paul is working to expand these categories to cover unneeded or surplus funds through his Bonuses for Cost-Cutters Act, S. 1378, which passed the U.S. Senate Committee on Homeland Security and Governmental Affairs by a bipartisan vote of 12-5 in May.

Federal employees can contact Dr. Paul’s Federal Spending Oversight Subcommittee at Report_Waste@HSGAC.Senate.Gov. All emails will be considered confidential, and employees can remain anonymous. 


Do Expiring Budgets Lead to Wasteful Year-End Spending? Evidence from Federal Procurement; Liebman, Jeffrey, & Mahoney, Neale; National Bureau of Economic Research; September 2013