DATA ActTransforming U.S. Federal Spending into Open Data
The Digital Accountability and Transparency Act of 2014 (DATA Act) is the nation’s first open data law. It directs the federal government to transform all spending information into open data.
President Barack Obama signed the DATA Act (Public Law No. 113-101 official text) into law on May 9, 2014. The Data Coalition had campaigned for the passage of the DATA Act from its founding in 2012.
The DATA Act takes two basic steps. First, it requires the Treasury Department and the White House Office of Management and Budget to establish government-wide data standards for the spending information that agencies already report to Treasury, OMB, and the General Services Administration. All agencies must begin reporting standardized spending information by May 9, 2017.
Second, the DATA Act requires Treasury and OMB to publish all of this spending information for free access and download on the government’s USASpending.gov website by May 9, 2018.
Section 5 of the DATA Act requires OMB to run a pilot program to test the same data standards for the reports that recipients of federal contracts, grants, and other assistance submit to the government. The pilot program must be complete by May 9, 2017. The DATA Act is an amendment to the Federal Funding Accountability and Transparency Act of 2006 (Public Law No. 109-282 official text).
For current updates on the DATA Act, browse the Data Coalition’s latest DATA Act posts.
|September 26, 2006||President George W. Bush signs the Federal Funding Accountability and Transparency Act of 2006
(FFATA) into law. The DATA Act will later amend FFATA.
|June 13, 2011||Rep. Darrell Issa introduces the DATA Act in the House of Representatives.|
|June 16, 2011||Sen. Mark Warner introduces the DATA Act in the Senate.|
|April 16, 2012||The Data Transparency Coalition (later renamed the Data Coalition) announces its launch.|
|May 21, 2013||Rep. Issa (with Rep. Elijah Cummings) and Sen. Warner (with Sen. Rob Portman) simultaneously re-introduce new versions of the DATA Act in both the House and the Senate. The Senate version ultimately becomes law.|
|April 10, 2014||The Senate passes the DATA Act.|
|April 28, 2014||
The House passes the DATA Act.
|April 29, 2014||The Data Transparency Coalition hosts the first Data Transparency Summit (later renamed DATA Act Summit).|
|May 9, 2014||President Obama signs the DATA Act into law. The DATA Act (official text) amends FFATA by adding new requirements for government-wide spending data standards, full publication of all spending data, and a pilot program to test standards for grant and contract recipients.|
|May 8, 2015||Treasury and OMB announce a first, incomplete version of government-wide data standards for federal spending, one day before the DATA Act‘s deadline. OMB publishes guidance to federal agencies.|
|May 9, 2015||The DATA Act‘s Section 5 pilot program begins for grant recipients, managed by HHS, on the DATA Act‘s
deadline. However, OMB fails to start a Section 5 pilot program for contract recipients.
|June 10, 2015||The Data Transparency Coalition hosts the second DATA Act Summit.|
|January 27, 2016||The Data Transparency Coalition changes its name to Data Coalition and founds a sister organization, the Data Foundation, a 501(c)(3) research organization.|
|July 29, 2015||Two subcommittees of the House Committee on Oversight and Government Reform hold the first Congressional DATA Act implementation hearing.|
|April 19, 2016||Two subcommittees of the House Committee on Oversight and Government Reform hold the second Congressional DATA Act implementation hearing.|
|April 29, 2016||Treasury publishes the complete version of government-wide data standards for federal spending.|
|May 2-3, 2016||The Data Foundation and the Performance Institute host the first DATA Act Training Program.|
|May 3, 2016||OMB publishes additional guidance for federal agencies on how to implement the data standards.|
|May 26, 2016||The Data Coalition hosts the third DATA Act Summit.|
|July 18, 2016||The Data Foundation and MorganFranklin Consulting publish The DATA Act: Vision and Value.|
|November 8, 2016||Deadline: Each agency inspector general must issue a report assessing the completeness, timeliness, accuracy, and quality of its agency’s spending data, plus its agency’s implementation and use of data standards, with additional reports in 2018 and 2020, under paragraph 6(a)(2) of FFATA (as added by the DATA Act).|
|May 8, 2017||Deadline: All agencies must begin reporting their spending data using the government-wide data standards, under paragraph 4(c)(2) of FFATA (as added by the DATA Act).|
|May 9, 2017||Deadline: Section 5 pilot program to test standardized reporting by grantees and contractors must end,
under paragraph 5(b)(5) of FFATA (as added by the DATA Act).
|August 7, 2017||Deadline: OMB must submit a report to Congress on the results of the Section 5 grantee and contractor reporting pilot program, under paragraph 5(b)(6) of FFATA (as added by the DATA Act).|
|November 8, 2017||Deadline: The Government Accountability Office must issue a report assessing the completeness, timeliness, accuracy, and quality of all agencies’ spending data, plus their implementation and use of data standards, with additional reports in 2019 and 2021, under paragraph 6(b)(2) of FFATA (as added by the DATA Act).|
|May 9, 2018|
|August 7, 2018||Deadline: OMB must decide whether to impose DATA Act standards on all grantee and contractor reporting, under paragraph 5(b)(7) of FFATA (as added by the DATA Act).|
By May 8, 2016, the DATA Act requires all federal agencies to begin reporting their spending information – including linked financial and award data – using a new, government-wide data structure. Under section 4 of FFATA, as added by the DATA Act, the Treasury Department and the White House Office of Management and Budget must establish this government-wide data structure and direct agencies to use it.
The Treasury Department has developed and published this data structure, known as the DATA Act Information Model Schema (DAIMS). Treasury developed the DAIMS on its Federal Spending Transparency GitHub site, allowing agencies and the public to provide input at each stage.
By standardizing their spending information, agencies will gain new enterprise-wide visibility into their accounts, obligations, and awards. Meanwhile, inspectors general will be able to deploy anti-fraud analytics more cheaply.
- Treasury Department’s Federal Spending Transparency GitHub site
- Treasury Department’s DATA Act Information Model Schema
- Guidance to agencies issued by the Office of Management and Budget:
- USASpending.gov DATA Act page
- Data Foundation and the Performance Institute’s first DATA Act Training Program, May 2-3, 2016 (syllabus and videos)
- Data Foundation’s second DATA Act Training Program, September 29, 2016 (summary and slides)
- Discussion of DATA Act benefits by Small Business Administration deputy CFO Tim Gribben, May 2, 2016 (video)
- Data Foundation and MorganFranklin paper: The DATA Act: Vision and Value
- GAO reports on DATA Act implementation
- Congressional hearings on DATA Act implementation
The DATA Act envisions that standardized data elements and formats for the reports submitted to the government by recipients of contracts, grants, and other assistance can allow the recipients to automate compliance using software. This concept is informally called “TurboTax for grants.”
Section 5 of the DATA Act requires the White House Office of Management and Budget (OMB) to conduct a pilot program to test the use of standardized data elements and formats for recipient reporting. The pilot program must end by May 9, 2017. OMB must report to Congress on its results by August 7, 2017 (90 days later). By August 7, 2018, a year after its report to Congress OMB must decide whether to apply the standardized elements and formats to all reports by contractors, grantees, and other recipients, across the whole government.
OMB appointed the Department of Health and Human Services to run this pilot program for grantees. HHS has established a DATA Act Program Management Office to run the program and has invited grantees to submit their reports using standardized data. HHS has published a data dictionary known as the Central Data Element Repository Library that contains thousands of data elements used in grantee reporting. By submitting reports as electronic data using the CDER Library data elements, grantees are testing whether software can automate their reporting tasks and reduce their compliance costs.
According to the Government Accountability Office, OMB has failed to follow the requirements of Section 5 for contractor reporting. On April 19, 2016, members of the House Oversight Committee asked OMB to present a new plan to fulfill the requirements Section 5 for contractor reporting.
The DATA Act requires the Treasury Department and the White House Office of Management and Budget to set up a government-wide, nonproprietary data structure for the U.S. government’s spending. Agencies must use this data structure, starting on May 8, 2017, to report their spending information. By May 8, 2018, Treasury and OMB must publish all federal spending information in this data structure for free public access on the federal government’s spending transparency website, USASpending.gov.
Treasury has developed and published this data structure, known as the DATA Act Information Model Schema (DAIMS). Treasury developed the DAIMS on its Federal Spending Transparency GitHub site, allowing agencies and the public to provide input at each stage. Treasury has also published an experimental beta version of USASpending.gov, OpenBeta.USASpending.gov, to test new ways of visualizing and navigating spending data.
If the DATA Act is fully implemented, USASpending.gov will offer the single most valuable open data set in the world. The data set will be available for anyone to download and use – data platform and analysis companies, transparency advocacy groups, news organizations, and the public.
Congress passed the DATA Act of 2014 to provide Americans with a clearer, more complete, and more reliable picture of how taxpayer money is spent.
The DATA Act requires the federal government to expand its spending transparency portal, USASpending.gov, to provide both a broader scope and more detail by May 8, 2018. Before the DATA Act, USASpending.gov only provided a summary of federal grants (and other assistance awards, like loans) and contracts. It did not cover information spent outside of grants and contracts, such as salaries and direct payments. Moreover, this information was limited to the amount obligated for each award, and didn’t show the amounts actually paid.
After the DATA Act is fully implemented, USASpending.gov will display the whole picture of federal spending, including both award and non-award spending. Depending on future decisions by Treasury and OMB, it may also allow the public to follow the whole life cycle of federal spending from Congressional appropriation to award and to final payment.
The Treasury Department is testing new ways to display federal spending information on an experimental website, OpenBeta.USASpending.gov. This site includes a way for the public to share feedback on visualizations and data sets. The Treasury Department will use this feedback to help design the future USASpending.gov.