Federal Aid Commission Act

Federal Aid Commission Act - Declares it to be the policy of Congress, with respect to Federal aid programs to State and local governments and other recipients, to eliminate red tape and over- regulation of such State and local governments and to improve the efficiency and effectiveness of such programs.

Establishes a 15-member Commission on Federal Aid Reform to study methods of accomplishing the policy set forth in this Act.

Directs the Commission to consider: (1) means to accommodate and improve the special management capacities of State and local governments; (2) means to improve the performance of agencies engaged in Federal aid programs activities; (3) duplications and omissions in such programs; (4) the utility of competition in aid awards; and (5) the extent to which profitmaking organizations should qualify for Federal aid awards.

Directs the Commission to make a final report to the President and Congress within two years after the first meeting.

States that, within six months after submission of the Commission's report, the Office of Management and Budget shall formulate the views of the executive branch on such report, implement, to the extent permitted by law, recommendations of the Commission which are accepted by the President, and propose to Congress legislation needed to implement other Commission recommendations accepted by the President.

Requires each meeting of the Commission to be open to the public unless it is considering specified matters including: information which must be kept secret for reasons of national defense; matters which must be kept secret to protect an individual's liberty or standing in the community; and matters which would disclose the identity of police informers.

Terminates the Commission 120 days after submission of its final report. Authorizes to be appropriated such sums as may be necessary to carry out this Act.