Federal Government Advertising Equity Accountability Act
Summary
The "Federal Government Advertising Equity Accountability Act" (H.R. 5805) mandates that executive agencies report expenditures on advertising contracts. Specifically, it requires reporting on contracts with socially and economically disadvantaged small businesses, as well as women- and minority-owned businesses. This information would be included in the annual budget submission to Congress, starting in fiscal year 2027.
The bill aims to increase transparency and accountability in government spending on advertising services. It seeks to ensure that a portion of these funds is directed towards businesses owned by underrepresented groups.
By requiring detailed reporting, the Act intends to promote equity in government contracting and support the growth of disadvantaged businesses.
Expected Effects
This bill will likely lead to increased scrutiny of federal advertising contracts. It may also encourage agencies to allocate more contracts to socially and economically disadvantaged small businesses and women- and minority-owned businesses. The reporting requirements could also reveal disparities in advertising spending.
Potential Benefits
- Increased transparency in government advertising contracts.
- Potential for increased opportunities for socially and economically disadvantaged small businesses.
- Potential for increased opportunities for women- and minority-owned businesses.
- Greater accountability for executive agencies in their advertising spending.
- Informing future policy decisions related to government contracting.
Potential Disadvantages
- Increased administrative burden on executive agencies due to the new reporting requirements.
- Potential for agencies to focus on meeting quotas rather than selecting the most qualified contractors.
- Possible delays in the budget submission process due to the additional reporting requirements.
- No guarantee that increased reporting will lead to actual increases in contracts for disadvantaged businesses.
- The definition of "advertising services" is not explicitly defined, which could lead to inconsistent reporting.
Constitutional Alignment
The bill aligns with the Constitution's principle of promoting the general welfare. While the Constitution does not explicitly address government advertising contracts, Congress has broad authority to enact legislation related to federal spending and budget reporting under Article I, Section 8. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).