What This Bill Does
This bill requires federal agencies and organizations receiving federal money to clearly disclose how much of their programs, projects or activities are funded by the government versus private sources. The bill establishes a process for reviewing whether organizations follow these disclosure rules and allows the public to report violations.
Who It Affects
Federal agencies (government departments and independent regulatory agencies), state and local governments, recipients of federal research grants, and any individual or entity carrying out a program, project or activity using federal funds.
Key Provisions
• Organizations using federal funds must clearly state in statements, press releases, requests for proposals, bid solicitations and other documents the percentage of total costs paid by federal funds, the dollar amount of federal funds available, and the percentage and dollar amount of costs paid by non-governmental sources (Sec. 2(b))
• This disclosure requirement does not apply to communications containing 280 characters or fewer (Sec. 2(b))
• Organizations must certify in their performance progress reports whether they complied with disclosure requirements for shorter communications (Sec. 2(c))
• The Director of the Office of Management and Budget must annually review a random sampling of public communications from agencies and federal fund recipients to check compliance and make findings public (Sec. 2(d))
• The Director of the Office of Management and Budget must create a public mechanism for people to anonymously report non-compliant communications within one year of the bill's enactment (Sec. 2(e))
What Changes
Federal agencies and organizations receiving federal funds must add three specific pieces of information about federal funding to their public communications about programs, projects and activities. A new system for checking compliance and reporting violations will be created.
Important Definitions
The bill defines "agency" as an Executive agency (a federal department or agency) or an independent regulatory agency (a government agency that operates independently from the President's direct control).
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 778
To require the disclosure of information relating to the cost of programs,
projects, or activities carried out using Federal funds.
IN THE SENATE OF THE UNITED STATES
MARCH 14, 2023
Ms. ERNST (for herself and Mr. BRAUN) introduced the following bill; which
was read twice and referred to the Committee on Homeland Security and
Governmental Affairs
A BILL
To require the disclosure of information relating to the cost
of programs, projects, or activities carried out using Fed-
eral funds.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Cost Openness and
4
Spending Transparency Act of 2023’’ or the ‘‘COST Act
5
of 2023’’.
6
VerDate Sep 11 2014
21:22 Mar 23, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S778.IS
S778
pbinns on DSKJLVW7X2PROD with $$_JOB
2
•S 778 IS
SEC.
2.
DISCLOSURE
REQUIREMENTS
FOR
FEDERAL
1
FUNDS.
2
(a) IN GENERAL.—Subchapter III of chapter 13 of
3
title 31, United States Code, is amended by adding at the
4
end the following:
5
‘‘§ 1356. Disclosure requirements for Federal funds
6
‘‘(a) DEFINITION.—In this section, the term ‘agency’
7
means—
8
‘‘(1) an Executive agency, as defined in section
9
105 of title 5; and
10
‘‘(2) an independent regulatory agency, as de-
11
fined in section 3502 of title 44.
12
‘‘(b) DISCLOSURE REQUIREMENTS.—An agency and
13
an individual or entity (including a State or local govern-
14
ment and a recipient of a Federal research grant) carrying
15
out a program, project, or activity that is, in whole or in
16
part, carried out using Federal funds shall clearly state
17
in any statement, press release, request for proposals, bid
18
solicitation, or other document describing the program,
19
project, or activity, other than a communication con-
20
taining not more than 280 characters—
21
‘‘(1) the percentage of the total costs of the
22
program, project, or activity which will be financed
23
with Federal funds;
24
VerDate Sep 11 2014
21:22 Mar 23, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S778.IS
S778
pbinns on DSKJLVW7X2PROD with $$_JOB
3
•S 778 IS
‘‘(2) the dollar amount of the Federal funds
1
made available for the program, project, or activity;
2
and
3
‘‘(3) the percentage of the total costs of, and
4
dollar amount for, the program, project, or activity
5
that will be financed by nongovernmental sources.
6
‘‘(c) CERTIFICATION.—An individual or entity car-
7
rying out a program, project, or activity that is, in whole
8
or in part, carried out using Federal funds shall, as part
9
of the performance progress reporting regarding the pro-
10
gram, project, or activity, include a certification indicating
11
whether the individual or entity complied with the disclo-
12
sure requirements under subsection (b) with respect to
13
communications containing not more than 280 characters
14
relating to the program, project, or activity.
15
‘‘(d) COMPLIANCE REVIEW.—The Director of the Of-
16
fice of Management and Budget shall annually—
17
‘‘(1) review a random sampling of public com-
18
munications issued by agencies and recipients of
19
Federal funds for compliance with the disclosure re-
20
quirements under subsection (b); and
21
‘‘(2) make publicly available the findings of the
22
review under paragraph (1).
23
‘‘(e) PUBLIC REPORTING.—Not later than 1 year
24
after the date of enactment of this section, the Director
25
VerDate Sep 11 2014
21:22 Mar 23, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S778.IS
S778
pbinns on DSKJLVW7X2PROD with $$_JOB
4
•S 778 IS
of the Office of Management and Budget shall make avail-
1
able to the public a mechanism to anonymously report
2
communications that do not comply with the disclosure re-
3
quirements under subsection (b), which shall require that
4
such a report include—
5
‘‘(1) the noncompliant communication or, if
6
publicly available, the location of the noncompliant
7
communication; and
8
‘‘(2) identifying information regarding the pro-
9
gram, project, or activity that is, in whole or in part,
10
carried out using Federal funds.’’.
11
(b) TECHNICAL AND CONFORMING AMENDMENT.—
12
The table of sections for subchapter III of chapter 13 of
13
title 31, United States Code, is amended by adding at the
14
end the following:
15
‘‘1356. Disclosure requirements for Federal funds.’’.
Æ
VerDate Sep 11 2014
21:22 Mar 23, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\S778.IS
S778
pbinns on DSKJLVW7X2PROD with $$_JOB