« Previous | Main | Next »

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 (55)

User Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

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

Post a comment