COST Act

Increased Transparency of Public Spending: Under Section 2(b), entities must clearly state the percentage of total costs financed by Federal funds and the specific dollar amount made available. This provides clarity on how much taxpayer money is being used for various projects.

Disclosure of Private Funding Proportions: Section 2(b) requires the disclosure of the percentage and dollar amount of a project financed by nongovernmental sources, allowing the public to see the full financial picture of a program.

Accountability through Oversight: Section 2(d) directs the Director of the Office of Management and Budget to conduct annual reviews of a random sampling of public communications to ensure agencies and recipients are following the disclosure rules.

Public Reporting Mechanisms: Section 2(e) requires the creation of a mechanism for the public to anonymously report communications that do not comply with the new disclosure requirements.

Compliance Burdens for Entities: Section 2(b) requires various entities, including state or local governments and Federal research grant recipients, to include specific financial breakdowns in many types of documents, such as press releases and requests for proposals.

Additional Reporting Requirements: Section 2(c) mandates that individuals or entities must include a certification in their performance progress reporting to indicate whether they complied with the disclosure requirements for communications under 280 characters.