The DATA Act launched the federal government on a path to standardize and publish all federal spending data. Efforts to implement the law are well underway. In April 2016, the Treasury Department issued the DATA Act Information Model Schema, which is the standard format that all agencies will use to report spending information by May 2017. Treasury will soon display all spending information as open data on a revamped version of the website USASpending.gov. The Department has already launched a beta version of the updated site and is gathering feedback on improvements ahead of the May 2017 deadline. Federal agencies should be actively planning now to be prepared for the switch.
The DATA Act was a monumental step forward for open government data, but passing the legislation itself did not ensure the government will accomplish its goals. Realizing the widespread benefits of the DATA Act will require years of effort and broad cooperation across government. Looking beyond May 2017, OMB should continue to pursue additional gains in opening federal spending data.
Although the DATA Act strengthens and standardizes federal spending data, the law does not relieve federal agencies of their legacy reporting requirements, so agencies will have to simultaneously report the same information twice. The Department of the Treasury and OMB should announce their intentions to remove legacy reporting requirements as the DATA Act reporting structure comes to fruition. This announcement will further underscore the importance of all agencies making the switch to the DATA Act Information Model Schema and reduce the future reporting burden for all federal agencies.
The DATA Act does not apply to every stage of the federal spending lifecycle. Notably, the President’s annual budget proposals and Congressional appropriations reside outside the requirement. In support of the DATA Act and open data initiatives, the President should develop the administration's budget using the DATA Act Schema and request that Congress follow suit. Similarly, the DATA Act Information Model Schema does not cover agencies’ payment information, the granular, checkbook-level records of each transaction. The President should direct OMB and the federal agencies to extend the Schema to cover payments.
Full implementation of the DATA Act will make it dramatically easier to understand federal government spending. Federal agencies will have better data to support management decisions and will be able to link to performance data to assess and improve their operations. Researchers and nonprofits will be able to explore trends and identify opportunities to reduce costs. Citizens will have the opportunity to understand the programs their tax dollars support. The DATA Act has the potential to enhance government performance, reduce expenditures, and increase accountability—but only if the federal government continues to strongly support its implementation.