President Barack Obama has signed into law a bill co-sponsored by Senator Deb Fischer designed to save money by closing some worthless accounts.
It’s called the GONE Act, which stands for The Grants Oversight and New Efficiency Act. It’s rather simple. The act calls for federal agencies to close grants 90 days after they expire.
That might seem simple. It doesn’t always happen.
In fact, a recent GAO report estimates the federal government spends roughly $173,000 a month to maintain 28,000 grant accounts with zero balances. A report published by the Washington Post estimates the federal government spends about $890,000 in bank service fees on accounts with nothing in them.
Sen. Fischer sponsored the GONE Act along with Democrat Joe Manchin, a senator from West. Virginia.
Fischer says it’s an example of successful bipartisan work: next up is helping working families with paid leave.
“We’re going to continue to work together with Republicans and with Democrats to be able to really provide opportunities for our families to be more secure,” Fischer tells Nebraska Radio Network.
According to Fischer’s office, the federal government spends more than $500 billion annuall on federal grants. The GONE Act stiffens grant closeout guidelines.
AUDIO: Brent Martin reports [:45]