The memo from GAO notes cases of broadcast news videos distributed by the Department of Health and Human Services and the office of National Drug Control Policy that failed to inform viewers that the government was the source of the information. The letter notes that the law has prohibited use of federal funds for propaganda since 1951. It says, “Statutory limits on the domestic dissemination of U.S. government-produced news reports reflect concern that allowing government to produce domestic news broadcasts would infringe upon the freedom of the press and constitute (or at least give the appearance of) an attempt to control public opinion.”

Joshua Bolton, director of the Office of Management and Budget (OMB), sent the March 11 letter to agencies informing them that the Department of Justice’s Office of Legal Counsel “has interpreted this same appropriations law in a manner contrary to the view of GAO,” and agencies are bound to follow that legal opinion. Bolton said the GAO, as an arm of legislative branch, cannot give the agencies, part of the executive branch, legally binding advice. A supporting memorandum from Steven Bradbury, principal deputy assistant attorney general, says purely informational material that does not include advocacy, does not need to disclose government as the source.

Walker responded in a Washington Post article by noting, “This is more than a legal issue. It’s also an ethical issue ....” He went on to say, “Congress may need to provide additional guidance with regard to their intent in this overall area.” Sens. Frank Lautenberg (D-NJ) and Edward Kennedy (D-MA) said they will propose an appropriations rider to provide clarification, stating, “Whether in the form of a payment to an actual journalist, or through the creation of a fake one, it is wrong to deceive the public with the creation of phony news stories.”