# Senate Appropriators Propose OMB Budget Cuts

On October 1, 2026, Senator Patty Murray and Senate appropriators introduced the Penalties for Propaganda Act, a proposal to reduce the Office of Management and Budget’s budget by **$20 million for each violation** of federal restrictions on taxpayer-funded publicity or propaganda. The bill has not been enacted, so it does not establish a current penalty. The report also says DHS-related spending and contract information remains undisclosed to the committee, raising oversight concerns relevant to contractors involved in federally funded communications.

- Contractors and subcontractors supporting federally funded communications should review controls over direct, indirect, and subcontracted spending for alignment with existing publicity and propaganda restrictions.
- The proposed reduction applies to OMB’s budget, not directly to contractor payments; businesses should distinguish the bill’s proposed agency-level consequence from any existing contractual or legal obligations.
- Because the proposal is pending, companies can account for its status in legislative and contract-risk planning without treating the proposed penalty as an enacted requirement.

**Jurisdictions:** federal
**Topics:** Policy
**Published:** October 01, 2026

### Government Entities
- Office of Management and Budget (OMB)
- Department of Homeland Security (DHS)
- U.S. Senate Appropriations Committee
- U.S. Congress

### Sources
- [Murray, Top Appropriators Introduce Bill to Impose Significant Penalties on Trump Admin for Using Taxpayer Dollars to Air Political Propaganda - Senator Patty Murray](https://www.murray.senate.gov/murray-top-appropriators-introduce-bill-to-impose-significant-penalties-on-trump-admin-for-using-taxpayer-dollars-to-air-political-propaganda/) - Murray Senate