# The COST Act: Making Federal Spending More Transparent

The COST Act requires that whenever the government or any organization spends federal money on a program, project, or activity, they have to be upfront about it in their public communications. Specifically, they must clearly disclose three things: what percentage of the total cost comes from federal funds, the actual dollar amount of federal money being used, and what percentage and dollar amount comes from other sources like private donations or state funding. This applies to government agencies, universities receiving research grants, nonprofits, state and local governments, and any other entity using taxpayer money.

The disclosure requirement applies to most public statements about these programs—things like press releases, grant announcements, bid solicitations, and project descriptions. The only exception is for very short communications like tweets or social media posts limited to 280 characters, which are too brief to include this information. For example, if a university announces a research project funded partly by a federal grant and partly by private donors, the announcement must spell out exactly how much federal money is involved and how much comes from other sources.

To enforce this transparency, organizations receiving federal funds must certify in their progress reports that they've complied with these disclosure rules. Additionally, the Office of Management and Budget will randomly check government and recipient communications each year to verify compliance and publish the results publicly. The bill also creates an anonymous reporting system so citizens can flag any communications they believe violate these disclosure requirements, helping ensure that taxpayer-funded activities are clearly labeled as such.