A proposed federal amendment would attach a new costly mandate in the Financial Data Transparency Act of 2022 (S. 4295) to the National Defense Authorization Act, which must pass by the end of the year to keep defense agencies operating. The proposed
amendment would establish costly new financial data standards that would apply to states and local governments that issue debt.
Section 203 of the legislation requires the Municipal Securities Rulemaking Board (MSRB) to establish uniform reporting requirements for financial reporting of data from issuers. This mandate would require all governments that issue debt to use this
uniform reporting without providing funding to implement this disclosure. The new standards would be inconsistent with existing government accounting standards and implemented by 2027.
See the NLC article and GFOA background materials for more information.
Take time to urge our U.S. Senators to oppose including this amendment to the defense bill and educate them on the significant financial reporting transparency that your jurisdiction already provides.