PolicyBrief
S. 872
119th CongressJul 30th 2025
Stop Secret Spending Act of 2025
AWAITING SENATE

This bill increases transparency by mandating comprehensive reporting of "other transaction agreements" on USAspending.gov and requiring annual reports on any unposted federal spending data.

Joni Ernst
R

Joni Ernst

Senator

IA

LEGISLATION

Federal Spending Bill Demands Transparency for 'Secret' Contracts, Sets 3-Year Deadline for Full Disclosure

The Stop Secret Spending Act of 2025 is trying to shine a massive spotlight on one of the murkiest corners of federal finance: Other Transaction Agreements (OTAs). Simply put, OTAs are contracts the government uses to buy things—often cutting-edge tech or R&D—that bypass the usual, heavily regulated federal contracting rules. While this flexibility can be great for speed, it also means billions of taxpayer dollars have been spent with very little public visibility. This bill mandates that all those OTA details must now be reported and posted on the public spending website, USAspending.gov.

This isn't just about adding a few lines to a spreadsheet; it’s a total overhaul of how these agreements are tracked. The bill updates the Federal Funding Accountability and Transparency Act (FFATA) to officially include OTAs in its reporting requirements. The Treasury Department, working with the Office of Management and Budget (OMB), has three years from enactment to make sure that OTA data is automatically flowing onto the public website. For people who want to know where their tax dollars are going, this is a huge win for clarity and accountability.

The End of the Black Hole Budget

One of the most practical changes in this legislation is the creation of an Annual Report on Unreported Funding. Think of this as the government being forced to hold up a sign saying, “Here’s the money we spent that we haven’t told you about yet.”

Starting one year after the bill becomes law, the Secretary of the Treasury and the OMB Director must publish a report on USAspending.gov detailing the total amount of federal spending not posted to the site. Crucially, they have to give specific reasons why the data was withheld. While the bill acknowledges legitimate reasons like national security or classified information, forcing the government to publicly justify every dollar it keeps secret is a major step toward transparency. For the average person, this means less guesswork and more concrete information about the true scope of federal spending.

Putting Agency Heads on the Hook

If you’ve ever filled out a form at work, you know how easy it is to click ‘submit’ without double-checking the details. This bill tries to stop that at the highest levels of government. It significantly tightens data quality standards, requiring the head of every agency or component posting data to personally ensure the information is complete and accurate. It’s no longer just an IT department task; this makes data accuracy a priority for the agency leadership.

Furthermore, the bill significantly boosts the role of internal watchdogs. Agency Inspectors General (IGs) must now submit public reports to Congress every two years for the next decade, specifically assessing the disclosure of federal funds. This creates an external pressure valve, ensuring that the agencies aren’t just rubber-stamping their own data.

The Fine Print: Where the Loopholes Might Hide

While the overall goal is transparency, a couple of provisions require a closer look. First, the full, automated data transmission for OTAs has a generous three-year runway. That’s a long time to wait for the full picture, meaning the lack of transparency in this area continues for a significant period. Second, the bill delegates the authority to the Secretary and the Director to assess and decide which federal agencies and components must post information. They have to publish a list of these required agencies.

This means that if certain agencies—perhaps those heavy users of OTAs—are conveniently left off that list, the transparency law could be significantly limited in scope. For taxpayers, this is the classic 'trust but verify' moment: the new rules are great, but we need to watch closely to see if all the big players are actually included in the final list of reporting agencies.