Key Takeaways
- •Sen. Ernst (R-IA) announced a Department of Defense Inspector General investigation into the Pentagon's failure to disclose costs for research and development projects as required by law.
- •Justin Goodman (Senior Vice President of Advocacy and Public Policy, White Coat Waste Project) testified that transparency tools helped expose and cancel millions in wasteful NIH-funded animal experiments.
- •Sen. Markey (D-MA) questioned Joshua Miller (Director, Congress Watch, Public Citizen) about the Department of Government Efficiency accessing sensitive Social Security data without proper security clearances.
- •Republicans highlighted pandemic loan fraud and "silly science" spending, while Democrats argued the current administration undermines transparency by firing Inspectors General and operating in secrecy.
- •Witnesses and members urged passage of the Stop Secret Spending Act to require public reporting of billions in Other Transaction Agreements currently omitted from federal databases.
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Hearing Analysis
Overview
The Senate Committee on Small Business and Entrepreneurship held a hearing on March 18, 2026, titled "Hearings to examine sunshine week, focusing on bringing secret government spending to light." Chaired by Sen. Joni Ernst (R-IA), the hearing focused on the effectiveness of current transparency laws, the prevalence of wasteful federal spending, and the role of oversight in holding government agencies accountable. The hearing coincided with "Sunshine Week," an annual initiative promoting open government.
The hearing’s primary purpose was to evaluate how taxpayer dollars are tracked and disclosed. Chair Ernst opened by highlighting that while the Federal Funding Accountability and Transparency Act requires expenditures to be listed on usaspending.gov, tens of billions of dollars remain omitted. She specifically targeted "silly science" projects, such as Navy-funded "octopus hypnosis" and Army-funded "monkey mind reading," where costs were not transparently disclosed. Ranking Member Edward J. Markey (D-MA) countered by criticizing the Trump administration’s lack of transparency, specifically targeting the Department of Government Efficiency (DOGE) for operating in "darkness" and purging nonpartisan federal staff and Inspectors General.
Key Testimony
Witness testimony provided specific examples of transparency failures and successes. Justin Goodman, Senior Vice President of Advocacy and Public Policy at the White Coat Waste Project, testified about using the Freedom of Information Act (FOIA) and usaspending.gov to uncover $1.8 million in National Institutes of Health (NIH) funding for unnecessary drug testing on puppies. He noted that while some tests were canceled following congressional pressure, disclosure deficiencies make it difficult to track the full extent of such spending. John Hart, CEO of Open the Books, discussed "use-it-or-lose-it" spending at the U.S. Department of Defense (Pentagon), noting that the agency spent $50 billion in the final five days of the fiscal year on items including luxury furniture and a $100,000 grand piano.
Jeff Arkin, Director of Strategic Issues at the Government Accountability Office (GAO), highlighted a significant transparency gap regarding Other Transaction Agreements (OTAs). He testified that the Pentagon awarded over $77 billion in OTAs over five years that were not reported to usaspending.gov because they are not technically classified as standard contracts or grants. Joshua Miller, Director of Congress Watch at Public Citizen, focused on the erosion of oversight institutions, criticizing the firing of 17 Inspectors General and alleging that DOGE personnel mishandled sensitive Social Security data.
Policy Proposals
Several policy proposals were central to the discussion. Chair Ernst promoted the COST Act, which requires Small Business Administration (SBA) grantees to disclose the amount and percentage of federal funding used in projects. She also advocated for the Stop Secret Spending Act to require the reporting of OTAs on usaspending.gov and the End-of-Year Fiscal Responsibility Act to curb year-end spending spikes. A major point of contention was the SBA Fraud Enforcement Extension Act, which would extend the statute of limitations for prosecuting pandemic-era fraud. Chair Ernst warned that if not passed by early May, many fraudsters would escape justice. Additionally, the Expedited Transparency Act, introduced by Rep. Josh Brecheen (R-OK) and Rep. Jimmy Panetta (D-CA), was mentioned as a bipartisan effort to move toward real-time spending transparency.
Overview
The hearing revealed sharp partisan divisions regarding the Department of Government Efficiency (DOGE). Republican members, led by Chair Ernst (who chairs the Senate DOGE Caucus), praised the entity for uncovering SBA loans given to minors and individuals using "Barbie dolls" for identification. Conversely, Democratic members, including Sen. Jeanne Shaheen (D-NH) and Sen. Mazie K. Hirono (D-HI), characterized DOGE as a "chaotic" and "unaccountable" body that compromised taxpayer data and provided inaccurate savings figures. Sen. Shaheen also criticized the lack of public hearings regarding the ongoing conflict in Iran and military actions in Venezuela and Cuba, arguing that the administration was hiding the true costs and objectives of these operations.
Organizations & Entities
Notable exchanges included Mr. Goodman’s claim that the Department of Health and Human Services (HHS) played a "Domino's Pizza" recording to deflect taxpayer calls regarding animal testing. Ranking Member Markey used a "tan suit" analogy to argue that the same level of scrutiny applied to past administrative norms should be applied to current "corruption," such as the use of private jets by government officials.
Overview
The hearing concluded with Chair Ernst emphasizing the need for bipartisan cooperation to recoup improper payments before the statute of limitations expires in May. The record was left open for two weeks for further submissions.
Transcript
The Committee on Small Business and Entrepreneurship to order. Happy Sunshine Week, folks, here we are. It's the time of year when we celebrate more sunshine in our lives and in our government. But while we may be getting a little more sunlight every day, Washington still seems to be in the dark. The government demands to know exactly how much money all of you earn so it can tax every single cent. Yet once Washington gets its hands on your money, it's anyone's guess where it is even going. For the past two decades, the Federal Funding Accountability and Transparency Act has required government expenditures to be publicly available on a searchable website, usaspending.gov. This website is invaluable to the oversight work I do every day, tracking how taxpayer dollars are being spent. But tens of billions of dollars are intentionally being omitted from the site every year. Another law passed 15 years ago requires Washington to make an annual list of programs describing the cost, purpose, and results of each program. Turns out government agencies don't even know how many programs they are running or if they are accomplishing their stated goals. More than 2,600 programs have been identified to date. But that doesn't include foreign aid and defense programs, which haven't been tallied yet. If Washington doesn't know how many programs there are and if they are actually working, how can the government guarantee your money is being spent properly? Simple answer is it can't. Folks, without transparency, there is no accountability. That's why I've authored a number of laws to shine more light on Washington spending. And as a result today, agencies from the Small Business Administration to the Pentagon must put public price tags on projects paid for with your tax dollars. A similar law applies to funding from the Departments of Health and Human Services, Education, and Labor. This information is intended to allow taxpayers to decide for themselves if the price is right. Here is an example of how SBA and taxpayers are supporting the work of our friends at the Iowa Center Women's Business Center. These folks are helping women who are trying to start or grow a business in our state, where women now own 43 percent of all businesses. As you can see from the price tag on the center's website, taxpayers are providing $150,000 of the costs to make those services available. Shouldn't every taxpayer-funded program, project, or product provide a similar price tag? Unfortunately, even where this transparency has already been promised, it isn't always happening. For example, right here, the Navy sunk tax dollars into conducting octopus hypnosis. But you'll put yourself in a trance reading through the results trying to find the cost. Why? Because it's not included. The Army is spending taxpayer money on monkey mind reading. But the cost is anyone's guess. While I'm sure we're all looking forward to learning what's on the minds of monkeys, I already know what's on taxpayers' minds. They are fed up with Washington hiding how the money they work so hard to earn is being spent, only to learn it's being wasted. Well, folks, sunshine is the best disinfectant for discouraging wasteful spending. That is why I appreciate SBA Administrator Kelly Loeffler for quickly getting her agency into compliance with my COST Act. While the Pentagon has been required to disclose the cost of research and development projects funded with tax dollars since 2021, the previous administration did little to make that happen. I am announcing today that the department's Inspector General will investigate the matter so taxpayers won't have to resort to mind reading or hypnosis to find out how defense dollars are being spent. One thing I've learned during my time in the Senate is there is more to making a law than just passing a bill. Oversight is absolutely essential to making sure the law is carried out. And effective oversight requires access to information. I want to recognize the hard work of the offices of Inspector General and the Government Accountability Office for assisting my work and standing up for taxpayers. I also want to express my deep gratitude for the work of Open the Books and the White Coat Waste Project, who turn transparency into real-world results that benefit all of us. I've learned the hard way that exposing inefficiencies and fighting waste doesn't make you many friends in Washington, D.C. So I salute you for your thankless work and I extend the gratitude of the taxpayers in Iowa who could not have better friends standing up for their interests in Washington. Before recognizing the Ranking Member for his opening remarks, I ask unanimous consent to enter into the record statements from nonprofit taxpayer watchdog and transparency groups in support of more openness in government, including Citizens Against Government Waste, US Right to Know, the National Taxpayers Union, and we'll enter these into the record without objection, so ordered. And I now recognize Ranking Member Markey for his opening statement.
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