Options for Allocating Resources to Meet Emerging Data and Evidence Needs in the Federal Government

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Authors

• Kira Fatherree, Research Fellow, Data Foundation
• Nicholas R. Hart, Ph.D., President, Data Foundation

Executive Summary

In January 2019, the Foundations for Evidence-Based Policymaking Act (Evidence Act) was enacted. It has the potential to dramatically change how the federal government manages data and uses information to inform important policy decisions. As agencies work to implement the Evidence Act, one core question will routinely arise: how much money should agencies spend on generating evidence to inform decision-making? And, importantly, how can the American public track and monitor the amount of funding agencies are allocating annually to support data and evidence activities? These questions need to be addressed throughout the implementation of the Evidence Act and beyond.

This white paper explores the opportunities available for Congress and Executive Branch agencies to apply various funding models to ensure the intent of the Evidence Act is realized. The paper starts by describing the challenges in measuring funding allocated for data and evidence activities, then describes some pieces of the funding calculus that are readily accessible as well as the types of funding mechanisms in place today. The paper concludes with a description of potential policy options and approaches for consideration by congressional appropriations committees, the White House Office of Management and Budget (OMB), and federal agencies in implementing the Evidence Act and supporting evidence-building activities moving forward.

With few exceptions, agencies in the federal government are unable to articulate in whole or in part the cost of collecting and managing data, conducting analyses that are considered “evidence,” then applying that information in decision-making. While there are some exceptions—such as statistical agencies and certain types of research—the challenges of measuring spending on data and evidence initiatives are real. Having a baseline measurement of federal funding that supports evidence generation and use could inform future efforts to ensure government has adequate capacity to effectively make data drive decisions and leverage their available evidence. It could also enable assessment of how adequately resources are allocated for establishing a more data-driven government and what can be expected for the future.

As Congress and the Executive Branch determine how to proceed in implementing the Evidence Act, the following six recommendations aim to support engagement specifically on resource availability:

1. Agencies should articulate funding and resource needs to OMB and congressional appropriators.
2. OMB should use the annual budget Passback to prioritize agency actions on the Evidence Act.
3. Congress and the Executive Branch should allocate sufficient direct appropriations for data and evidence initiatives.
4. OMB should propose new, flexible funding mechanisms to support implementation of the Evidence Act.
5. Agencies should maximize existing set-aside authorities and other funding flexibilities.
6. Information on data and evidence spending should be centrally collected and made publicly available.

If evidence-based policymaking is to succeed in the U.S., our government’s leaders must provide the resources to attain this important goal.

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