COST Act
- Bill Number
- H.R. 1387
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-02-14: Referred to the House Committee on Oversight and Government Reform.
- Last Updated
- 2026-03-30T22:57:53Z
AI-Generated Summary
Purpose
The Cost Openness and Spending Transparency Act of 2025 (COST Act) aims to increase public transparency about how federal funds are used in government programs, projects, or activities. It requires clear disclosure of federal funding details in official communications to help the public understand the sources and proportions of funding.
Key Provisions
- Disclosure Mandate: Federal agencies (including executive agencies and independent regulatory agencies) and any recipients of federal funds—such as state or local governments, or entities receiving federal research grants—must include specific funding information in documents like statements, press releases, requests for proposals (RFPs), or bid solicitations. This excludes very short communications (e.g., those under 280 characters, like social media posts). The required details are:
- The percentage of total costs financed by federal funds.
- The exact dollar amount of federal funds allocated.
- The percentage and dollar amount of costs covered by non-governmental sources (e.g., private or state funds).
- Certification Requirement: Recipients of federal funds must certify in their performance progress reports whether they have complied with the disclosure rules.
- Compliance Oversight: The Director of the Office of Management and Budget (OMB) must conduct an annual review of a random sample of public communications from agencies and fund recipients to check for compliance and publish the results.
- Public Reporting Mechanism: Within one year of enactment, OMB must create an anonymous online tool for the public to report non-compliant communications, including details like the communication itself or its location and information about the funded program.
Significant Changes to Existing Law
- This bill amends Title 31 of the United States Code (which covers money and finance) by adding a new section (1356) to Subchapter III of Chapter 13. Previously, there was no uniform federal requirement for disclosing funding breakdowns in public communications about federally supported activities.
- It introduces mandatory certifications and OMB-led audits, along with a public whistleblower system, which did not exist before.
Potential Impacts
- On Government Agencies: Agencies and fund recipients will need to update communication processes, potentially increasing administrative workload for drafting and reviewing documents. OMB will face new responsibilities for reviews and maintaining a reporting tool.
- On Citizens: Greater access to funding details could empower the public to better evaluate government spending, hold officials accountable, and make informed decisions about local or national programs.
- On International Relations: Minimal direct impact, though it may indirectly affect how U.S. agencies describe international aid or collaborative projects involving federal funds.
Main Stakeholders Affected
- Federal Agencies: Executive and independent regulatory agencies responsible for implementing and complying with disclosures.
- Fund Recipients: State and local governments, private entities, and research grant holders who use federal funds.
- Office of Management and Budget (OMB): Oversees compliance reviews and the public reporting system.
- The Public: Citizens and taxpayers who benefit from increased transparency in how federal money is spent.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill enforces transparency without imposing penalties for non-compliance (beyond public reporting and reviews), relying instead on certification and oversight. It could lead to future enforcement through existing federal auditing laws if violations are widespread.
- Constitutional: Aligns with First Amendment principles by mandating disclosures in official government-related communications, similar to existing financial reporting rules, without restricting free speech.
- Political: Promotes fiscal accountability and reduces perceptions of "hidden" government spending, potentially influencing public trust in federal programs. It may encourage bipartisan support for oversight but could face criticism for adding bureaucratic layers to funding announcements.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Self, Keith [R-TX-3], Rep. Edwards, Chuck [R-NC-11]
Recent Actions
- 2025-02-14: Referred to the House Committee on Oversight and Government Reform.
- 2025-02-14: Introduced in House
- 2025-02-14: Introduced in House
Bill Versions
- Cost Openness and Spending Transparency Act of 2025 — issued 2025-02-14 — PDF (4 pages)