COST Act
- Bill Number
- S. 4130
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-03-18: Committee on Small Business and Entrepreneurship. Hearings held.
- Last Updated
- 2026-05-01T18:40:49Z
AI-Generated Summary
Purpose
The Cost Openness and Spending Transparency Act of 2026 (COST Act) aims to increase transparency in how federal taxpayer dollars are used by requiring clear disclosure of funding sources in public communications about government-supported programs, projects, or activities. This ensures the public knows the extent to which initiatives rely on federal funds versus other sources.
Key Provisions
- Disclosure Requirements: Federal agencies (including executive agencies like the Department of Defense and independent regulatory agencies like the Federal Trade Commission) and any recipients of federal funds—such as state or local governments, contractors, or research grant holders—must include specific funding details in public documents like statements, press releases, requests for proposals (RFPs, which are invitations for bids on projects), or bid solicitations. These details include:
- The percentage and dollar amount of total costs covered by federal funds.
- The percentage and dollar amount covered by non-federal (nongovernmental) sources.
- This applies to any program, project, or activity funded wholly or partially by federal money, but excludes very short communications (280 characters or fewer, roughly the length of a tweet).
- Certification Process: Recipients must certify in their performance progress reports (regular updates on project status) whether they complied with disclosure rules for short communications.
- Compliance Oversight: The Director of the Office of Management and Budget (OMB, a federal office that helps coordinate government operations) must conduct an annual random review of public communications from agencies and fund recipients to check compliance and publicly release the findings.
- Public Reporting Mechanism: Within one year of enactment, OMB must create an anonymous online tool for the public to report noncompliant communications, requiring submitters to provide the communication itself (or its location if online) and details about the related federal-funded project.
Significant Changes to Existing Law
- This bill amends the U.S. Code (specifically, title 31, which covers money and finance) by adding a new section (1356) to subchapter III of chapter 13, establishing mandatory disclosure rules where none existed before.
- It introduces uniform federal requirements for transparency in communications, extending beyond agencies to all entities using federal funds, and creates new enforcement tools like annual reviews and public reporting—previously, such disclosures were not standardized or enforced at this level.
Potential Impacts
- On Government Agencies: Agencies and fund recipients will face increased administrative burdens to track and disclose funding details in communications, potentially requiring updates to templates, training, and reporting systems. OMB will need resources for annual reviews and the reporting mechanism.
- On Citizens: Taxpayers gain clearer visibility into how federal dollars are spent, fostering greater accountability and public awareness of funding mixes (e.g., distinguishing taxpayer-supported projects from those with private contributions).
- On International Relations: No direct impacts, as the bill focuses on domestic federal spending transparency without addressing foreign aid or international projects.
Main Stakeholders Affected
- Federal Agencies and OMB: Directly responsible for compliance, reviews, and implementing the public reporting tool.
- Recipients of Federal Funds: Includes state and local governments, contractors, grant holders (e.g., universities or nonprofits), and private entities, who must update their communications and certifications.
- Taxpayers and the Public: Benefit from enhanced transparency but may use the reporting mechanism to flag issues.
- Congress and Oversight Committees: The bill was referred to the Senate Committee on Homeland Security and Governmental Affairs, which oversees government operations and could influence future audits or expansions.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens existing transparency laws (like the Freedom of Information Act) by mandating proactive disclosures, with potential for civil penalties if noncompliance leads to further enforcement (though not specified here). The anonymous reporting tool could encourage whistleblowing but raises questions about verifying reports to avoid misuse.
- Constitutional: Aligns with First Amendment principles by requiring disclosures without broadly restricting speech, though it mandates specific content in government-related communications, which courts have upheld for public accountability. No apparent conflicts with due process or other rights.
- Political: Promotes fiscal responsibility and anti-waste narratives, potentially appealing to advocates for government efficiency. It could spark debates on administrative costs of compliance versus benefits of openness, influencing budget oversight in future sessions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Scott, Rick [R-FL], Sen. Lummis, Cynthia M. [R-WY], Sen. Lankford, James [R-OK]
Recent Actions
- 2026-03-18: Committee on Small Business and Entrepreneurship. Hearings held.
- 2026-03-18: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2026-03-18: Introduced in Senate
Bill Versions
- Cost Openness and Spending Transparency Act of 2026 — issued 2026-03-18 — PDF (4 pages)