Congress moves to expose how much federal money funds your local programs
H.R. 1387 — COST Act · Filed by Ralph Norman (R-SC) · 3 cosponsors · Introduced Feb 14, 2025 · Referred to committee
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What it does
The COST Act requires federal agencies and organizations receiving federal funding to clearly disclose in public communications how much of a program's cost is paid by federal funds versus other sources. The Office of Management and Budget will randomly audit compliance and maintain a public system for reporting violations. The goal is to make it transparent to the public how much taxpayer money is funding various programs and projects.
Why we flagged it
The bill requires federal agencies and grant recipients to disclose the percentage and dollar amount of federal funding in public communications about federally-funded programs. This is a transparency and accountability measure, not a substantive policy change.
What the text implies
- May increase administrative burden on smaller grant recipients and state/local governments unfamiliar with federal disclosure requirements, potentially discouraging participation in federal programs.
- The anonymous reporting mechanism could generate complaints about routine communications that technically violate the rule but cause no public harm, creating compliance friction without clear public benefit.
The full analysis lists 3 implications of this text.
Who it affects
Citizens gain transparency about how their tax dollars are being spent and which programs rely on federal funding. This supports informed civic participation and accountability.