Joyce Holds Hearing on the Economy Act

WASHINGTON, D.C. – Today, House Appropriations Financial Services and General Government (FSGG) Subcommittee Chairman Dave Joyce (OH-14) led an oversight hearing on the Economy Act. Shirley Jones, Managing Associate General Counsel at the Government Accountability Office, and Dominick Fiorentino, an Analyst in Government Organization and Management at the Congressional Research Service, appeared before the Subcommittee to discuss the origins of the Economy Act and its use since its enactment.

Watch the full hearing here:

“It is important Congress understands how these agreements work and whether the Act can and should be strengthened. We are always encouraged by ways to save the government money and to utilize the federal government’s vast resources to be more efficient,” said Congressman Joyce in his opening remarks. “From an appropriations standpoint, it is important to understand how Economy Act transactions are being used and their impact on current agency operations and funding levels.”

Background:

The “Economy Act” is the common reference to 31 U.S.C. § 1535. The authority originated with the Economy Act of 1932, which established the first government-wide statutory authorization for federal agencies to provide work, services, and materials. Prior to the enactment of the Economy Act, it was difficult for agencies to reimburse one another for services. Often, an agency that performed a service for another federal agency would end up absorbing the cost using its own appropriations. The statute has been amended several times since its enactment. Today, FSGG oversees a significant number of agencies that have relied on the Economy Act for goods and services.

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