S. 4130: Cost Openness and Spending Transparency Act of 2026

The Cost Openness and Spending Transparency Act of 2026, also known as the COST Act, aims to enhance transparency regarding the use of federal funds for various programs, projects, or activities. Here is a summary of the bill's main provisions:

Disclosure Requirements for Federal Funds

The bill mandates that any federal agency or entity (including state or local governments and recipients of federal research grants) involved in projects funded, in whole or part, by federal dollars must provide clear information about the project's financing. Specifically, they must disclose:

• The percentage of the project's total costs that will be covered by federal funds.
• The total amount of federal funds allocated for the project.
• The percentage and dollar amount of the project financed by non-governmental sources.

Communications and Reporting

Any formal communication regarding the project, such as statements, press releases, or bid solicitations, must include the required financial disclosures, except for communications limited to 280 characters, like tweets.

Additionally, entities carrying out the project are required to include a certification in their performance reports, confirming they have complied with these disclosure requirements.

Compliance Review

The bill tasks the Director of the Office of Management and Budget (OMB) with conducting annual reviews of public communications from federal agencies and their funding recipients. This review will check for compliance with the new disclosure requirements, and the findings will be made publicly available.

Public Reporting Mechanism

Within one year of enactment, the OMB Director is required to create a system for the public to anonymously report instances of noncompliance with the disclosure rules. This reporting system will ask for details regarding the noncompliant communication and the relevant program or project information.

Technical Amendment

The bill also includes a technical and conforming amendment to update legal references in existing statutes to reflect the new disclosure requirements.

Relevant Companies

None found