OMB just sent out a memo to Department Heads and Federal Agencies directing them how to deal with the FY07 spending bill (which the President signed today). We are pleased that the White House is following up on Congressional instructions in the spending bill – FY06 earmarks shouldn’t cast a shadow on FY07 spending. So while members of Congress dial for dollars at federal agencies, they should just get voice mail. Agency heads are expected to make funding decisions on a strictly merit-based, competitive process that doesn’t involve political muscle. Now, we’re not going to kid ourselves. Memos are just pieces of paper and they don’t make things happen by themselves in this town, but OMB has thrown down the gauntlet and laid down the law they expect agencies to follow. Now, the White House and budget watchdogs like us have to make sure that agencies don’t collude with Congress to fund the same old annual pork.