Federal Agency Spending Outpaces Growth, Raising Concerns Over Waste

Created: JANUARY 25, 2025

A recent investigation by fiscal watchdog OpenTheBooks reveals a concerning trend: federal agency spending is dramatically outpacing staff growth. The group's initiative, which compares agency outlays with staffing levels, has uncovered substantial spending increases across various departments, even in cases where staff numbers have remained stagnant or decreased.

Graphs depicting Department of Education staffing and spending trends.

A prime example is the Department of Education. While staffing has decreased since 2000, OpenTheBooks reports a staggering 749% increase in spending. This finding is particularly troubling considering the recent National Assessment of Educational Progress statistics, which show student achievement hasn't recovered from pandemic-related declines.

This pattern extends beyond the Department of Education. The National Institutes of Health saw a 301% spending surge despite only a 21.5% staff increase. OpenTheBooks' analysis, encompassing 50 federal agencies, aims to provide transparency and empower taxpayers to evaluate government efficiency.

The watchdog group also highlighted the existence of approximately 75 federal agencies listed in the Federal Register that are essentially defunct or obsolete, having been merged, renamed, or dissolved. Maintaining outdated records of these agencies further obscures the overall picture of federal spending.

OpenTheBooks CEO John Hart emphasized the need for transparency, questioning the allocation of these escalating funds. He suggested that taxpayers should have access to this spending data to assess the necessity of maintaining such a large number of agencies, especially considering the potential for waste and fraud.

Image representing government spending.

A Department of Education spokesperson criticized previous administrations for mismanaging funds on ineffective programs. She asserted that under the current administration, spending is being audited to prioritize student outcomes and responsible use of taxpayer money.

Other agencies exhibiting similar trends include FEMA, where spending increased over 2,000% despite a 290% staff growth, and USAID, which experienced a 468% spending increase alongside a 218% staff increase.

Image of Trump and Musk related to government spending.

OpenTheBooks' ongoing initiative will continue to analyze federal agency spending, periodically releasing findings to promote public awareness and accountability.

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