https://www.forbes.com/sites/adamandrzejewski/2020/08/25/ten-ways-binge-buying-bureaucrats-spent-91-billion-in-a-year-end-2019-shopping-spree/#74915f754c45
Christmas comes in September, not December, for federal contractors.
In the final month of the fiscal year, federal agencies scramble to spend the leftovers in their annual budgets. They worry that spending less than Congress appropriated this year will mean a thinner budget next year.
So, rather than admit the department could run efficiently on fewer taxpayer dollars, federal agencies embark on a shopping spree. This is the “use it or lose it” spending phenomenon – and it happens every year on the taxpayer dime.
Our OpenTheBooks oversight report – The Use-It-Or-Lose-It Spending Spree, How The Feds Spent $91 Billion In September 2019 detailed 642,567 transactions – or about 21,418 expenditures per day.
In the final nine days of the year, federal agencies signed $51 billion in contracts, which exceeded the spending in each of the trailing eleven months. In the final two days, agencies authorized a whopping $23.8 billion.
In February 2020, President Donald Trump committed to ending the bureaucratic binge-buying in his budget to Congress FY2021. So, we reached out to the budget hawks at the Office of Management And Budget (OMB) for comment.
PROMOTED
OMB Director Russ Vought responded: “The practice of use it or lose it spending has cost American taxpayers an untold amount of money. It’s a practice that needs to stop and OMB will continue our efforts to end this wasteful spending.”