Feds Banned from Buying Swag, Mascots Under New 'SWAG Act': Spending Reports Now Required

The "Stop Wasteful Advertising by the Government Act," or "SWAG Act," just changed the rules on how federal agencies can spend your tax dollars. Basically, it puts a stop to agencies buying promotional freebies (swag) and using mascots, aiming to cut down on what's seen as unnecessary spending.

No More Freebies?

The core of the SWAG Act is pretty straightforward: no more federal funds can be used to buy or hand out swag. Think tote bags, keychains, stress balls – all those branded items agencies sometimes give away. The bill, in Section 3, also nixes the use of mascots to promote agencies or programs. This means no more government-funded characters in costumes trying to get you excited about, say, filing your taxes.

Show Us the Money

Beyond the swag and mascot ban, the SWAG Act wants agencies to be more transparent about their advertising and public relations budgets. Section 3 also requires that every year, agencies have to report exactly how much they spent on public relations and advertising in their budget requests to Congress. They also have to estimate the "return on investment" – basically, whether the spending actually achieved anything useful.

Real-World Check

Imagine a federal agency that hands out branded water bottles at a job fair. Under the SWAG Act, that's a no-go. Or picture a friendly, costumed mascot promoting a government health initiative – also banned. Instead, agencies will need to show that their outreach efforts provide concrete benefits that justify the costs. For a small business owner who sees government spending as bloated, this could be a welcome change. For someone working at a non-profit that partners with federal agencies, this might mean fewer co-branded items at events.

The Fine Print

Now, there are a few exceptions. Section 3 allows swag for programs that can prove a "positive return on investment", for military and federal job recruitment, and for the Census Bureau. Mascots are still okay if they're legally declared U.S. property, used for military recruitment, or part of a military academy's sports team. The Office of Management and Budget (OMB) has 180 days from the bill's enactment to figure out the specifics (SEC. 3).

While the goal is to cut waste, there's also room for agencies to get creative with how they define "return on investment." And, they could just shift their spending to other forms of promotion not covered by the bill. Still, the SWAG Act aims to make agencies think twice about how they're spending on self-promotion, and that could mean more tax dollars going to the actual services they provide.