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Report: Wasteful Government Spending at All-Time High

June 27, 2007 1:56 PM

Reportwasteful_mn The U.S. government has committed to spend a record-high $1.1 trillion with companies holding government contracts "plagued by waste, fraud, abuse or mismanagement," according to a new report by the House Oversight and Government Reform Committee.

The report blames the rise in bad spending on a sharp increase in noncompetitive contracting and a general increase in the use of private companies to perform government functions.

More than $200 billion in taxpayer money was spent on projects for which only one or a handful of companies submitted bids, the committee found. 

That figure has more than tripled since 2000, according to the report, and now comprises more than half of all government spending outside of entitlement programs like Medicare, Medicaid and Social Security.

"The numbers -- there's not an iota of justification for more than half of all contracts being no- or limited-bid contracts," said Keith Ashdown of Taxpayers for Common Sense, a non-partisan Washington, D.C.-based group which scrutinizes federal spending.

Ashdown said he doubted senior government officials were letting so many troubled no-bid contracts to "cronies" but were doing it out of laziness.

"They knew that, until a few months ago, Congress wasn't minding the store," he told the Blotter on ABCNews.com, referring to the Democrats' takeover of the House and Senate last November. "They could do whatever they wanted."

According to the report, the committee based its findings on a federal database of government spending, and more than 700 reports by government auditing and investigations offices.

In a fact sheet released in response to the report, the Bush administration said it was "committed to strengthened use of competition and effective contract management and oversight."

Do you have a tip for Brian Ross and the Investigative Team?

This post has been updated.

June 27, 2007 | Permalink | User Comments (54)

User Comments

your best move right about now concerning this country would be to get correct with God Almighty so that these problems WILL get straightened out. Stop trying to handle situations on your own and start praying to Jesus Christ. This world is taking every turn for the worse for everyone involved.
THIS IS NOT ABOUT ANY RELIGION...ITS ABOUT A RELATIONSHIP TO MAKE THINGS BETTER.

Posted by: Jessica | Jun 27, 2007 3:43:27 PM

That's what the politicians are in it for, our tax dollars. Why would someone spend $30,000,000 of their own money, on a campaign for a four year job that pays $150,000/yr? Answer: because there is one hell of a payoff.

Posted by: Tuthmosis III | Jun 27, 2007 3:55:47 PM

please keep reporting on this run-a-way spending. i think it is because Chaney was with halburton at one time.
thanks
c.c. elliott

Posted by: cleveland elliott | Jun 27, 2007 4:03:20 PM

Taxpayers for Common Sense? That says it all. A real unbiased scource!

Posted by: Mitch | Jun 27, 2007 4:07:21 PM

This does not surprise me at all. And they talk of government waste an ineffeciency. I'd rather have that than what is going on now. These pirates are going to bankrupt this country.

Posted by: Jerome A. Stoll | Jun 27, 2007 4:12:43 PM

Clearly we need to elect a Democratic executive and legislative branch to ensure some fiscal responsibility. The republican party's proclaimed principles are all lies intended to seduce voters, you know the ones about reining in gov't spended, not getting involved in nation building, protecting individual liberties and rights, and standing up for the rule of law. All that matters to Bush et. al. is increasing the wealth and power of themselves and their croniew.

Posted by: Sean | Jun 27, 2007 4:22:37 PM

Jessica, Jesus Christ is going to balance our budget and reduce wasteful spending? Absurd. How about coming together as free thinking Americans and electing officials that will be fiscally responsible?

Posted by: Rich | Jun 27, 2007 4:39:54 PM

NOOOO!!!!! Do ya think?! You mean under a bush administration, a "conservative rule" Geee.... now who would have predicted this?

Posted by: Dismal Leadership Dooms US | Jun 27, 2007 5:03:21 PM

It won't change until Dubya gets out of office. Nancy Pelosi, with her pledge not to impeach, has told the Presdent and Vice-President they can do anything they want with no threat of punishment. Hopefully, Waxman will be able to talk some common sense in her head.

Posted by: Bill Humphres | Jun 27, 2007 5:07:13 PM

Until, we the voters, realize that we are hiring these clowns to manage the budget and business of this country, not to legislate morality we will be left with this type of representation. We allow our votes to bought by the big spenders who are pandering the devisive moral issue (gay marriage, abortion, pornography, drug abuse, etc.). Bring all campaigns under public funding and our tax bill will go down and special interest groups lose leverage. Our representative would be working for us.

Posted by: BooMan | Jun 27, 2007 5:15:06 PM

Still happy you voted for Bush?

Posted by: gotcha | Jun 27, 2007 5:22:04 PM

Yeah, ole Bushie said he was going to run this Government like a corporation, and this is what Corporate Capitalism looks like folks...

SURPRISE.

Posted by: Ron | Jun 27, 2007 5:22:26 PM

Dick Cheney runs this government the way he ran Halliburton. Why do you think Halliburton needs all those big government contracts he's steered their way since he moved into the Naval Observatory?

Posted by: Carl O. | Jun 27, 2007 5:29:48 PM

The U.S.A. is in a catastrophic position due to the growing pains of a young nation. I AM SICK TO MY STOMACH to realize it will take longer than my productive lifetime to flush the trash from our government's 200 year old system, and to be able to COUNT on/hope for something better (judges, etc.) This modern day mess promotes mass confusion/labeling of the %40 dropout rate in depressed city's high schools across the nation.

Posted by: Mark Bouchard | Jun 27, 2007 5:32:04 PM

no way... not during a conservative rule... no way could this happen.....
( ( ( ( ( ((( PSYCH!!! ))) ) ) ) ) )

Posted by: Jack in DC | Jun 27, 2007 5:34:29 PM

Nice going, W.

Posted by: Rick | Jun 27, 2007 5:38:34 PM

i second the motion on the jessica and tuthomosis comment, the thruth is no government in this earth that could make thing good its all about the moral issue that is important for us voter to look for a better leader regardless of his religious affiliation,i hope the system we have in this country will not become a 3rd world country in term of corruption and we must understand the power of lobbyist that infect the whole system. the lobbyist are ex congressmans and senators that are still with power its acompadre system that excist and will continue to be arround.

Posted by: eddie | Jun 27, 2007 5:57:34 PM

You kind of get the feeling we elected a bunch of looters and opportunists in 2000 and 2004. They exist on both sides of the fence, but there is a special tradition going back to the Boston Brahmans of using govt. service to fleece the sheeple on a particularly staggering scale. Mix in Wallstreet and Big Oil during a Republican administration and oh my, we're headed for one big hang-over.

Posted by: Steve Lindsey | Jun 27, 2007 6:35:58 PM

This isn't about Jesus Christ. It is about YOU and ME treating one another and this world with RESPECT and for once in the history of mankind, putting SELF INTEREST AND GREED aside for the betterment of our brothers and sisters... can it be done? Nah... GREED RULES US. ECONOMY over ECOLOGY. PROFITS over CHARITY.... that is the creed that is driven by the Power Lust that has a stranglehold on this nation now.

Posted by: Dismal Leadership Dooms US | Jun 27, 2007 6:37:24 PM

BOOT EM ALL OUT, and vote Libertarian Ron Paul for REAL CHANGE!

Posted by: Jennifer | Jun 27, 2007 7:06:04 PM

This country desperately needs a third party. The Republicans and Dems are too closely aligned in the political process

Posted by: lakeaustinman | Jun 27, 2007 8:27:46 PM

NOT WASTE -- IT'S TRANSFER OF FUNDS!!
Bush-Cheney's "mission accomplished" is the transfer of money $$$$$$$$ from tax payers to corporate war-profiteers, Big Oil and other pals-of-Bush-Cheney.
SHOVELING TAX PAYER DOLLARS into pockets of rich friends is Bush-Cheney's "mission accomplished". Too bad US Troops are killed and maimed in FOR-PROFIT WAR.
It already paid off for Halliburton: it moved from Houston to DUBAI!
EXILE Bush-Cheney!

Posted by: darker | Jun 27, 2007 10:34:50 PM

The Republicans are excellent campaigners, but horrible legislators. So much for the bogus Conservative platform of 'small governement' 'frugal spending' and 'private companies always do everything better than the governement can'. Those were just empty campaign slogans, not actual principles.

Posted by: Luke | Jun 27, 2007 11:09:26 PM

They all shook us down. But we have to look at the root. Your tax dollars are not being wasted. Reagan spilled the beans, not one red-cent of your taxes goes towards operating the government. Firt, the politicians got on board with the bankers and legislated the Fed into our lives. Now the government borrows money from the Fed (with interest) and spends it recklessly. Then they send you a bill for their borrowing (with interest). They've had it all figured out for a long time; we still don't get it.

Posted by: elephantrider | Jun 27, 2007 11:36:19 PM

I will second the motion for RON PAUL.
Best candidate out there from any party right now. Can't figure why he doesn't get better media coverage though.
All the other candidates are in here every day. Where are the RON PAUL stories ABC???
This trillion dollar plus spending is not going to destroy this country. And RON PAUL has a plan to stop all this. Tax and spend is not working. And we just need to stop spending what we don't have to get back on track.

Posted by: TruthSeeker | Jun 28, 2007 12:18:28 AM

No neo cons not even Ron Paul they have for years done this to America now vote anything but them they are a waste and are the ilk of this Earth.

Posted by: ant | Jun 28, 2007 8:41:15 AM

Not only that, but congress wants to reinstate their automatic pay raises, while they earn very large salaries by ordinary people standards, and ordinary people are being expected to continue to do without any pay raises whatsoever.

Congress needs to back off that plan, or the people need to vote them out of office, as totally irresponsible lawmakers, who are only out for themselves.

Posted by: Rick McDaniel | Jun 28, 2007 10:10:44 AM

Civics 101 said Congress spends the money not the Executive branch......

Posted by: Jeff | Jun 28, 2007 11:57:46 AM

Imagine my shock! Did we really need another panel to tell us this? Yet another waste...

Posted by: J. | Jun 28, 2007 12:06:24 PM

Get rid of Democrats and Republicans. Vote against your rep and Senator.

Go from Deficit to surplus overnight -
Give congress a bonus based on the budget surplus left at the end of the year. Even if you give them 80% of the surplus they will cut spending while increasing surplus.

Posted by: QUICKSNAKE | Jun 28, 2007 12:33:09 PM

It amazes me the number of people that don’t understand that the Congress controls the spending not the Executive Branch or the Senate. I believe the Democrats under Nancy Pelosi and Harry Reid were going to rein in spending and control corruption.

Posted by: Jim | Jun 28, 2007 1:32:24 PM

WHAT NEW.GET RID OF THE WASTE,LIKE THE DEMOCRATS,THE REPBULIANS.KEEP THEIR HANDS OUT OF THE MONEY JAR.IF THERE WAS NO WASTE.NO RAISES BUT CONGRESS AND THE SENATE GET THEIR AUTOMOTIC PAY RAISES.WHY DO THE ORDINORY PEOLPE HAVE DO WITHOUT ANY AUTOMATIC PAY RAISESOR FREE HEALTH CARE,FREE POSTAL FREE ANYTHING ETC.IF THERE WAS NOT WASTE OF MONEY. THERE WOULD BE SURPLUS.KEEP YOUR HANDS OF OF SOCIAL SECURITY, MEDCARE,MAIDCARE.IT COME DO TOO JUST GREED.TOO MUCH TALK AND NOTHING IS DONE.

Posted by: LORETTA | Jun 28, 2007 2:27:53 PM

tax cuts imposed by the bush administration are causing the biggest surplus in recent history. what are you libs talking about? vote a democrat into office? why? so that more of your hardearned tax dollars can go to lazy, slothful, unproductive members of society? this report says that this is the highest government spending with private companies. it does not say anything about adjusting the rate for inflation over a history of time, it does not say anything about how many improvement projects are being funded comparitively, and it does not say what projects are being funded. for all we know by reading this report, is that we may be funding a democrat effort to save the environment from a made up global warming bit. Besides, im sorry i might be mistaking, but which party has control of the purse right now, oh yeah, huh, its a bunch of dems.

Posted by: infidel | Jun 28, 2007 2:29:26 PM

Hello,

Why in the world would we take a person that adds to the country's GDP and give them a job telling us where to paint lines on the road? The cost is less GDP, less productivity from that individual, and more spending of other peoples money.

Look at the career politicians from all parties. How long have they been there? I do believe the founders wanted people to represent their states, then go back to the private sector. Now we re-elect these fools year after year. I believe it is time to look in the mirror and vote these "career" polictians out of office, and will be replaced by someone who will represent the people.

CD

Posted by: C. Douglas | Jun 28, 2007 2:42:12 PM

Both parties suck.

Posted by: Susan | Jun 28, 2007 8:49:23 PM

Do you have your escape plan ready? Australia? New Zealand?

At this point, I think we must dissolve our pathetic government and start again. Who's with me?

Or, perhaps for even more fun, let's split the country in two: one for Christians, one for secularists and then we can see who wins.

Posted by: fedup | Jun 28, 2007 11:09:02 PM

Wow, not sad so much about runaway spending as I'm sad the total lack of intelligience of people who post to this site!

Posted by: erick | Jun 30, 2007 6:52:10 AM

I'm with you Susan, only lets put conservatives on one island, liberals on another.
Within one year one would be a virtual leper colony begging for help, one would be thriving. Bet you a paycheck on which will be which.

Posted by: erick | Jun 30, 2007 6:55:41 AM

Oops !
Bush had same excercise to track 2.3 trillion on Sept 10th 2001, Iraqi development fund can't be accounted by Iraqis and USA says it is their fund, they should be responsible, though it was US tax payers money.
1.1 trilion It already paid off for Halliburton: it moved from Houston to DUBAI!
Now 1.1 trilion, 18 months to go,What next?

Posted by: fixhist_7 | Jul 1, 2007 8:03:15 AM

The opportunists continue into the 2008 Congress just elected as they hold their hands out for an estimated $4400/month pay raise, while there is a multi-Billion dollar war going on and an off the charts debt deficit. No pay raise for Congress until the War is over.

Posted by: Cd1234567891 | Jul 1, 2007 12:20:14 PM

@ant: Ron Paul has voted against spending for years. In fact, when Clinton and Gingrich had their fight over the budget in 1995 and Gingrich was enforcing party discipline to pass a budget, Gingrich gave Ron Paul an exemption (the so-called "Ron Paul exemption") because Dr. Paul had voted against nearly every spending bill during his time in the House. I have a feeling he'd veto such bills if he were president.

Posted by: Andrew E | Jul 1, 2007 7:19:34 PM

Wow ! Government waste, Government in bed with Corporations, you know, those wonderful little vermin called "lobbyist". I could probably count on one had the number of honest, thrify, have integrity, and have our Countrys best interests at heart. Here we all are, some paying the ultimate price in fighting a war for oil, sure there's some humanitarian work being done, but that is obviously secondary to the root. Now us regular working people are being oppressed by "fuel surcharges" tacked on to every utility or service we pay for. Food, clothing, medicines, and other essentials are becoming a real problem to be able to afford. Yet our money is being stolen from us by executives that were elected by us. Our rights are being robbed in such a subtle way everyday. Do we really have a voice anymore ?!?!?! Darker spoke my sentiments exactly.

Posted by: zadia | Jul 1, 2007 11:07:45 PM

Wow, you people seem surprised by what our current sellected government has been up too. Have we all been in the caves with obama, Oopps i mean osama?
Are these the same CHUDs that voted that crook and his henchmen into another 4 yrs. of the hell we have been living.The minute bush told us he would go on a Crusade against terrorism we were attacked.Now he is funneling our money into his buddies pockets right under our noses,and forgiving the law breakers with pardons.Wake up people and smell the petrolium we are slaves too.WE the People are being gouged by the big oil president and his money sucking friends in congress. NO RAISES TILL THE BUDGET IS PASSED AND DO YOUR DAMN JOBS!!!$$800.00 amonth in gas bills to get to a job making $1000.00 a week. Living check to check no savings in bank all money to bills and some for food. No money to vacation. Thats the American way of life now. Sound Fun to you!

Posted by: Christmas Jones | Jul 5, 2007 6:56:50 PM

If you get a chance, look up the Warren G. Harding presidency. So many parallels to what is happening with the Bush/Cheney debacle.

Posted by: caribel | Jul 10, 2007 3:01:44 PM

I want my money back!!

Are the Dems doing anything about this? Or is this money that was already in the pipeline before they became the majority party? I'd like to think things are going to change soon . . .

Posted by: Marilyn | Jul 10, 2007 7:53:50 PM

Erik said:
"I'm with you Susan, only lets put conservatives on one island, liberals on another.
Within one year one would be a virtual leper colony begging for help, one would be thriving. Bet you a paycheck on which will be which."

Erik, I don't know which one you'd be betting on, but I would imagine that on the conservative island we would find a few people doing extraordinarily well, and the rest on that island making it happen for those lucky few, but the majority not doing so well themselves.

I'd imagine the liberals would be helping each other out, and all would be doing fine but probably very very few would be doing extraordinarily well.

Posted by: Marilyn | Jul 10, 2007 8:00:13 PM

Some of you people make me laugh. You blame Republicans, but do you blame the Democrats? You blab, but do you pay attention? You think electing Democrats will fix our problems? Pull your heads out of he sand. You just don't get it, Bush is a globalist along with a bunch of other Republicans. On the flip side Pelosi, Clinton and the majority of the Democrats are Socialists. You know socialism...the sister to communism! Wake up Globalists and Socilaists are destroying America and herding you towards a "1984" style socilaist police state. So instead of running into the arms of the socialist Democrats you should be educating yourselves on the Constitution, Bill of Rights and what our founding father envisioned. Then you may be able to return this nation to a true Constitutional Republic. If not, enjoy the future YOU are allowing to happen.

Posted by: Jeff | Jul 11, 2007 12:09:20 AM

Jeff,
well said and finally, someone who got it right. Both parties are intent only on their own gain and we, the people, have watched as our rights vanish away.

Posted by: dennis | Jul 28, 2007 10:22:45 AM

We are told that there will not be enough money in the social security pot for the "baby boomers" Then the President pushes for... and the legislature passes... Medicare D. Big pharmaceutical houses had well used low income assistance programs available for those in need for years - Nobody had to decide food or meds if they ask their Dr for a form and mailed it in with proof of income. The programs didn't even interfere with large profit margins but Big Pharma feared it would... and so, our President apparently decided to give Big Pharma - most of who's businesses reside outside the USA - a BIG gift!!! And nobody cared - but we still have all these Baby Boomers - And do we do get together and figure another viable source of fuel for our autos etc so we can quit supporting middle east oil monarchies - No, we invade one of them. If we didn't need their oil - we wouldn't be going so broke now - Did we learn nothing from the Russians In Afghanistan?

Posted by: Pat | Oct 4, 2007 7:22:57 PM

Trillions! That is what Congress should
be pulling in-income taxes,corporate &
gas taxes,drilling&mining,etc...
3565pages-the new budget representing
550 billion-is over budget.

strange math

Posted by: joseph | Dec 21, 2007 9:56:48 AM

The problem that few of you here are seeing is that this is not a Republican or Democrat problem. Both sides are untrustworthy and scandalous to say the least. They both blame the other for our problems which allows them to continue to maintain their power base and control of tax dollars. We naively keep electing them expecting change when no career politician will ever bring change because it will spell the end of the career politician. They will lose their power base.

Posted by: greg | Dec 27, 2007 1:50:45 PM

Hey heres an idea limmit the spendings in the U.S. to the amount that easily be disributal so not one group gets more money then the others but we stil have enough to fall back on.

In doing this more jobs open up and so if one group need more money "they" could distribute more money to all the groups.

yes i agree that the parties are sucking and blowing but what can you do about it? Get up there and campaign yourself quit waiting for someone to do it for you go be an american and fight for what we all know is obvious

Posted by: Jordan Fetcher (jeff studant) | Feb 4, 2008 12:00:43 PM

Here's what we can do - RECALL!

Posted by: Mar Matthias Darin | Mar 29, 2008 5:06:26 PM

well all this seems to upsurd hard working americans have thier taxes takin away for what to spend it on things that are uselesspeople that dont work tend to alwaays get the better end.

Posted by: professor eisenhower | Nov 12, 2008 12:16:07 PM

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