Federal Government Advertising Equity Accountability Act

## Summary The Federal Government Advertising Equity Accountability Act would require federal agencies to report detailed information about their spending on advertising contracts. Specifically, agencies must disclose how much they spent in the previous fiscal year and estimate future spending for two categories: (1) all advertising contracts, and (2) contracts specifically awarded to socially and economically disadvantaged small businesses (as defined by the Small Business Act) and women- or minority-owned businesses. This reporting requirement applies to the President’s annual budget submission starting in fiscal year 2027. The bill aims to increase transparency in federal spending, promote equitable opportunities for underrepresented businesses, and help Congress assess whether agencies are prioritizing diverse vendors in their advertising budgets. ## Key Points - Mandatory Reporting: Requires federal agencies to disclose annual expenditures for advertising contracts in their budget submissions. - Breakdown by Business Type: Agencies must separately report spending on contracts with disadvantaged small businesses and women/minority-owned businesses. - Future Estimates: Agencies must include projected advertising costs for the upcoming fiscal year in their budget requests. - Effective Date: Applies to budgets submitted for fiscal year 2027 and beyond. - Equity Focus: Designed to ensure federal advertising dollars support diverse and underserved business communities. ## Impact Areas - Federal Agencies: Must track and report advertising spending data annually. - Disadvantaged Small Businesses: Could gain increased access to government contracts if agencies adjust practices based on reporting. - Women- and Minority-Owned Businesses: May see more opportunities if disparities in spending are identified and addressed. - Government Transparency: Enhances oversight by providing Congress with detailed spending insights. - Budget Process: Adds a new layer of accountability to federal procurement practices. *Technical terms explained*: - Executive agency: Any federal department or agency controlled by the President (e.g., Department of Defense, EPA). - Socially and economically disadvantaged small businesses: Businesses owned by individuals facing systemic barriers, as defined under the Small Business Act’s 8(a) program.