The federal government gives out $300 billion a year in grants and contracts to about 30,000 organizations, but the taxpayers who make that possible generally have no idea how their money is being spent. That's going to change, however, with passage by Congress last week of the Federal Funding Accountability and Transparency Act.

The legislation requires the U.S. Office of Management and Budget to set up a publicly available, searchable and downloadable database of federal contracts, grants and loans by January 2008. President Bush is expected to sign the legislation, which was originally proposed by Sen. Tom Coburn, R-Okla., and co-sponsored by Sens. Barack Obama, D-Ill., Tom Carper, D-Del., and John McCain, R-Ariz.

Within 30 days of the awarding of funds, the OMB site must include the name of the entity receiving the funds, the amount of funds received by the entity in each of the past 10 years along with details of those transactions, the location of the entity, and where the goods and services purchased with federal money will be performed or purchased.

The on-line database is of particular importance since the federal budget deficit has been projected to be more than $400 billion for the fiscal year that ends at the close of this month. Following several years of budget surpluses, the federal government began recording deficits in fiscal 2002. Though the fiscal 2005 deficit of $319 billion was below the fiscal 2004 deficit of $412 billion, it was little consolation.

David M. Walker, comptroller general of the United States since 1998, complained in a column last year in Business Week that federal spending and tax cuts ''are spiraling out of control.'' In fact, Mr. Walker said, federal budget deficits actually have outpaced the cost of the global war on terror and homeland security funding.

There is good reason for even more concern as the oldest baby boomers turn 60 this year, ramping up the nation's costs for Social Security and Medicare. Sunshine on the OMB's records can't come soon enough.