Most posts on this thread are focusing on exceptional cases where there are obvious reasons not to open the source, such as defense, but huge amounts of publicly-funded code is locked up for no reason whatsoever. Let's discuss some use cases that make more sense: 1. healthcare.gov 2. Stoplights/traffic control cameras. 3. Voting machines. 4. Electrical grid. 5. IRS.
Man it would be pretty amazing to be able to submit a Pull Request to the IRS. Matt Cutts if you're reading this please help! On another note, I'm not sure I agree on the electrical grid or traffic controls being open sourced ... could imagine some nefarious things happening as a result of that
As to TFA, I have mixed feelings. I'm actually more concerned about research and related patents and data surrounding publicly funded study. I do feel that Open-Source should be given some level of preference, but not that all publicly funded software should be open source itself. It's a blurry line imho.