Sponsor
Byron Donalds
Representative · R-FL
Representative · R-FL
The bill increases transparency and federal enforcement to improve detection of misuse and accountability for federal funds, but it raises risks of funding cuts that could disrupt services, adds compliance costs for state and local governments, and creates privacy concerns around detailed financial disclosures.
State and local governments' financial records will be made available for federal review, improving federal oversight and helping detect misuse or waste of federal funds.
Taxpayers and the public gain greater transparency into how federal dollars are spent at the state and local level, increasing accountability for public programs.
The Office of Management and Budget gains an explicit enforcement tool (withholding funds) to encourage state compliance with audit and reporting requirements, likely improving fiscal controls.
Residents may face delayed or reduced public services if states that fail to comply lose federal funding as a result of withholding.
State and local governments will incur administrative costs and staffing burdens to meet expanded reporting and timeliness requirements, straining budgets and capacity.
Broader access to detailed state and local financial records could expose sensitive contract, grant, or fiscal information, raising privacy and confidentiality concerns.
Based on analysis of 2 sections of legislative text.
Requires state and local recipients of federal funds to give the GAO access and annual fiscal records and lets OMB withhold funds for noncompliance.
Official title: To provide the Comptroller General of the United States access to State records and documents for the purposes of certain audits, investigations, and evaluations, and for other purposes.
Introduced June 10, 2026 by Byron Donalds · Last progress June 10, 2026
Requires states, local governments, and other municipal recipients of federal money to give the Government Accountability Office (Comptroller General) access to budgets, financial records, contracts, grants, expenditure reports and other documents for audit, investigation, or evaluation. Those recipients must also automatically deliver an annual package of records for the prior fiscal year within 120 days after year end, and the OMB Director may withhold, suspend, or condition federal funds to a noncompliant state until it provides the required access. The bill centralizes federal audit access to sub-federal fiscal records and creates an enforcement tool (federal funding withholding) to secure compliance with GAO information requests and the annual reporting requirement.