The COST Act (Cost Openness and Spending Transparency Act of 2025) would require agencies and any person or entity carrying out programs funded, in whole or in part, with federal dollars to publicly disclose specific financial information in most material communications about the program. For each such program, disclosures must include: (1) the share of total costs financed by federal funds, (2) the dollar amount of federal funds provided, and (3) the share and dollar amount funded by nongovernmental sources. In addition, those carrying out federally funded programs would need to certify compliance in performance progress reports. The bill also creates an annual compliance review by the Director of the Office of Management and Budget (OMB) and, within a year of enactment, a public anonymous reporting mechanism for noncompliant communications. Finally, it adds a new section (Sec. 1356) to the United States Code and requires a conforming amendment to the table of sections. In short, the act aims to increase transparency about how federal money is spent by requiring upfront disclosure of funding sources in most public-facing communications and by introducing oversight and a reporting mechanism to address noncompliance.
Key Points
- 1Scope and definitions: Applies to agencies (Executive and independent regulatory) and to recipients carrying out programs funded by federal dollars; requires disclosures in statements, press releases, RFPs, bid solicitations, and similar documents describing the program (with a 280-character exception for small communications).
- 2Disclosure content: Must state (1) the percentage of total program costs funded by federal money, (2) the dollar amount of federal funds, and (3) the percentage and dollar amount funded by nongovernmental sources.
- 3Certification: Individuals or entities implementing the program must certify, in their performance progress reporting, whether they complied with the disclosure requirements.
- 4Compliance review: OMB Director must annually review a random sample of public communications for compliance and publicly release the findings.
- 5Public reporting mechanism: Within one year of enactment, OMB must provide a mechanism for anonymous reporting of noncompliant communications, including the noncompliant item and identifying information about the funded program.
- 6Administrative change: Adds new Sec. 1356 to 31 U.S.C. Chapter 13 Subchapter III; requires a conforming amendment to the table of sections.