Testimony Before the Committee on 

Commerce, Science, and Transportation, 

U.S. Senate

United States Government Accountability Office

GAO

For Release on Delivery 

Expected at 10:00 a.m. EDT 

Thursday, May 12, 2005 VIDEO NEWS RELEASES

Unattributed Prepackaged 

News Stories Violate 

Publicity or Propaganda 

Prohibition 

Statement of Susan A. Poling, Managing Associate General 

Counsel, Office of General Counsel 

GAO-05-643T 
What GAO Found

United States Government Accountability Office

Why GAO Did This Study

Highlights

Accountability Integrity Reliability

www.gao.gov/cgi-bin/getrpt?GAO-05-643T.

To view the full product, including the scope 

and methodology, click on the link above. 

For more information, contact Jeffrey 

McDermott at (202) 512-2584 or 

mcdermottj@gao.gov. 

Highlights of GAO-05-643T, a report to

Senate Committee on Commerce, 

Science, and Transportation 

May 12, 2005

VIDEO NEWS RELEASES 

Unattributed Prepackaged News Stories 

Violate Publicity and Propaganda 

Prohibition 

Prepackaged news stories are complete, audio-video presentations that may 

be included in video news releases, or VNRs. They are intended to be 

indistinguishable from news segments broadcast to the public by 

independent television news organizations. To help accomplish this goal, 

these stories include actors or others hired to portray “reporters” and may 

be accompanied by suggested scripts that television news anchors can use to

introduce the story during the broadcast. These practices allow 

prepackaged news stories to be broadcast, without alteration, as television 

news. 

The publicity or propaganda prohibition states, “No part of any 

appropriation contained in this or any other Act shall be used for publicity or 

propaganda purposes within the United States not heretofore authorized by 

the Congress.” GAO has long interpreted this provision to prohibit agencies 

from, among other things, producing materials that are covert as to origin. 

Our opinions have emphasized that the critical element of covert 

propaganda is concealment of the government’s role in producing the 

materials. Agencies have violated this law when they used appropriated 

funds to produce articles and op-ed pieces that were the ostensible position 

of persons not associated with the government. 

In two legal opinions this past year, federal agencies commissioned and 

distributed prepackaged news stories and introductory scripts about their 

activities that were designed to be indistinguishable from news stories 

produced by private news broadcasters. In neither case did the agency 

include any statement or other indication in its news stories that disclosed to 

the television viewing audience, the target audience of the purported news 

stories, that the agency wrote and produced those news stories. In other 

words, television-viewing audiences did not know that stories they watched 

on television news programs about the government were, in fact, prepared 

by the government. GAO concluded that those prepackaged news stories 

violated the publicity or propaganda prohibition. 

While agencies generally have the right to disseminate information about 

their policies and activities, agencies may not use appropriated funds to 

produce or distribute prepackaged news stories intended to be viewed by 

television audiences that conceal or do not clearly identify for the television 

viewing audience that the agency was the source of those materials. It is not 

enough that the contents of an agency’s communication may be 

unobjectionable. Neither is it enough for an agency to identify itself to the 

broadcasting organization as the source of the prepackaged news story. 

In addition to these opinions, the Comptroller General issued a circular 

letter to the heads of all cabinet departments and federal agencies in 

February to alert them to our opinions on VNRs and to remind them of their 

duty to disclose the source of materials that they disseminate to the public. 

In recent years, federal agencies 

have been increasing their use of 

video news releases (VNRs), which 

frequently include prepackaged 

news stories. While the use of 

VNRs is widespread and widely 

known by those in the media 

industry, the quality and content of 

materials considered to constitute 

a VNR can vary greatly. Generally, 

a VNR package may contain several 

items, including a series of video 

clips, known as B-roll footage; title 

cards containing relevant 

information, known as slates; a 

prepackaged news story, referred 

to as a story package; and other 

promotional materials. These 

materials are produced in the same 

manner as television news 

organizations produce materials for 

their own news segments. 

The prepackaged news stories are 

distributed to local television news 

stations and are designed to 

resemble actual news stories. By 

eliminating the costs and effort of 

producing an original news story, 

agencies can find news stations 

willing to broadcast a favorable 

news segment on a desired topic. 

GAO examined prepackaged news 

stories produced by the 

Department of Health and Human 

Services and the Office of National 

Drug Control Policy and evaluated 

whether these materials 

constituted covert propaganda in 

violation of the prohibition on 

using appropriated funds for 

publicity and propaganda not 

authorized by Congress. 
Page 1 GAO-05-643T 

Chairman Stevens and Members of the Committee: 

Thank you for the opportunity to be here today to discuss the legal 

opinions recently issued by the Government Accountability Office (GAO) 

regarding the use of prepackaged news stories by federal agencies. In the 

past year, GAO has issued two legal opinions on the production of video 

news releases (VNRs) that included prepackaged news stories by both the 

Department of Health and Human Services (HHS) and the Office of 

National Drug Control Policy (ONDCP). In both of these instances, we 

concluded that the agencies violated the federal governmentwide 

prohibition on the use of appropriated funds for purposes of publicity or 

propaganda not authorized by Congress. In addition, in February, the 

Comptroller General sent a circular letter to the heads of all federal 

agencies to alert them to our recent opinions and to remind them of the 

prohibition on publicity or propaganda. 

Since the 1990s, VNRs have become a popular public relations tool for 

private corporations, nonprofit organizations, and government entities to 

disseminate information, in part because they provide a cheaper 

alternative than more traditional broadcast advertising and are welcomed 

by some local news stations in smaller markets with significant budget 

restraints. 

While the use of VNRs is widespread and widely known by those in the 

media industry, the quality and content of materials considered to 

constitute a VNR can vary greatly. Generally, a VNR package may contain 

several items, including a series of video clips, known as B-roll footage; 

title cards containing relevant information, known as slates; a 

prepackaged news story, sometimes referred to as a story package; and 

other promotional materials.1

 These materials are produced in the same 

manner as television news organizations produce materials for their own 

news segments. By eliminating a news station’s production efforts and 

costs of producing an original news story, VNR creators can find stations 

willing to broadcast a favorable news segment on a desired topic. 

 1

For example, the Office of National Drug Control Policy (ONDCP) video news releases 

that we examined contained television advertisements and public service announcements. 

Background 

VNRs Contain Slates, 

B-Rolls, and Prepackaged 

News Stories 
Page 2 GAO-05-643T 

The B-roll footage and slates are intended to assist news stations in 

producing their own news stories, while the story package is a preassembled, ready-to-air news story that is often accompanied by a 

suggested lead-in script for the anchor. Even if a broadcaster does not use 

a story package or scripted materials in full, the production of a 

professionally complete news story provides a framework for the message 

conveyed in the final broadcast, which allows the producer, in this case, 

the federal agency, to assert some control over the message conveyed to 

the target audience--the viewer of the broadcast. 

The popularity of VNRs may be attributed to the ease with which the 

materials may be distributed. While some packages are distributed directly 

from the source to television stations, satellite and electronic news 

services, such as those provided by CNN Newsource, facilitate distribution 

to a number of news markets in a short period of time. Broadcast stations 

subscribe to these services, which provide journalist reports and stories 

and advertising, in addition to VNR materials. While the news services 

label VNRs differently than independent journalist news reports, there 

apparently is no industry standard as to the labeling of VNRs. In fact, some 

news organizations that broadcast the HHS VNR indicated that they 

misread the label or they mistook the story package as an independent 

journalist news story on CNN Newsource. 

GAO examined three VNR packages that HHS made available to local 

news organizations. The VNRs consisted of three videotapes with 

corresponding, printed scripts; two of the videotapes were in English, and 

one was in Spanish. The B-roll footage on each of the English videotapes 

was exactly the same and contained footage of President Bush, in the 

presence of Members of Congress and others, signing the Medicare 

prescription drug legislation into law, and a series of clips of seniors 

engaged in various leisure and health-related activities, including 

consulting with a pharmacist and being screened for blood pressure. The 

English videotapes also included clips of former HHS Secretary Tommy 

Thompson and Leslie Norwalk, Deputy Administrator of the Centers for 

Medicare & Medicaid Services (CMS), making statements regarding 

changes to Medicare. The Spanish videotape includes clips of statements 

by Dr. Cristina Beato of CMS, instead of Thompson and Norwalk. 

HHS VNRs Included 

Narration by Contractors 

Posing as Reporters 
Page 3 GAO-05-643T 

The two English VNRs contained different story packages, each narrated 

by Karen Ryan, an HHS subcontractor, who was not affiliated with a news 

organization. The first story package focused on CMS’s advertising 

campaign regarding the prescription drug legislation. The suggested 

anchor lead-in stated that “the Federal Government is launching a new, 

nationwide campaign to educate 41 million people with Medicare about 

improvements to Medicare.” The lead-in ended with “Karen Ryan 

explains.” The video portion of the story package began with an excerpt of 

the television advertisement with audio stating, “it’s the same Medicare 

you’ve always counted on plus more benefits.” Karen Ryan then explained, 

“That’s the main message Medicare’s advertising campaign drives home 

about the law.” As more clips from the advertisement appeared, Karen 

Ryan continued her narration, indicating that the campaign helps 

beneficiaries answer their questions about the new law, the administration 

is emphasizing that seniors can keep their Medicare the same, and the 

campaign is part of a larger effort to educate people with Medicare about 

the new law. The story package ended with Karen Ryan stating: “In 

Washington, I’m Karen Ryan reporting.” 

The second English story package focused on various provisions of the 

new prescription drug benefit and did not mention the advertising 

campaign. The anchor lead-in stated: “In December, President Bush signed 

into law the first ever prescription drug benefit for people with Medicare.” 

The anchor lead-in then noted, “There have been a lot of questions about” 

the new law and its changes to Medicare and “Karen Ryan helps sort 

through the details.” The video portion of the news report started with 

footage of President Bush signing the legislation, and Karen Ryan’s 

narration indicated that when it was “signed into law last month, millions 

of people who are covered by Medicare began asking how it will help 

them.” Next, the segment included footage of Tommy Thompson, in which 

he states that “it will be the same Medicare system but with new benefits.” 

Karen Ryan continued her narration, stating “most of the attention has 

focused on the new prescription drug benefit . . . all people with Medicare 

will be able to get coverage that will lower their prescription drug 

spending . . . Medicare will offer some immediate help through a discount 

card.” She also told viewers that new preventive benefits will be available, 

low-income individuals may qualify for a $600 credit on available drug 

discount cards, and “Medicare officials emphasize that no one will be 

forced to sign up for any of the new benefits.” Karen Ryan’s narration then 

led into clips of Thompson and Norwalk explaining other beneficial 

provisions of the new law. The second story package also ended with, “In 

Washington, I’m Karen Ryan reporting.” 
Page 4 GAO-05-643T 

The Spanish-language materials contained the same three items as the 

English language VNRs—a B-roll, slates, and a story package. After the 

B-roll segments, the story package segment appeared. This segment was 

considerably longer than its two English counterparts, focused on 

prescription drug benefits, and was narrated by Alberto Garcia, who is 

also an HHS subcontractor, not a reporter. The anchor lead-in was similar 

to the second English story package, except the anchor indicates that 

Alberto Garcia “helps sort through the details.” The video segment began 

with the footage of President Bush signing the prescription drug bill into 

law, as Alberto Garcia narrated that after signing the law, millions of 

people who are covered by Medicare began asking how the new law will 

help them. The remainder of the story package contained footage of Dr. 

Beato and of seniors engaged in various activities. During the video clips 

of seniors, Alberto Garcia narrated that the prescription drug benefit will 

be available in 2006 and that drug discount cards will be available in June 

2004 and that “[p]eople with Medicare may be able to choose from several 

different drug discount cards, offering up to 25 percent savings on certain 

medications.” Alberto Garcia concluded his report, stating: “In 

Washington, I’m Alberto Garcia reporting.” 

For the ONDCP legal opinion, GAO examined eight VNRs, seven of which 

included prepackaged news stories, in addition to B-roll footage and 

slates. Each of ONDCP’s news stories included narration by an unseen 

person, identified as Mike Morris, Karen Ryan, or Jerry Corsini. The 

narrator explained that he or she was “reporting” on various ONDCP 

activities and on various issues related to the use of marijuana by 

teenagers. Each story was accompanied by proposed “lead-in” and 

“closing” remarks to be spoken by station news anchors. Many of the 

suggested anchor remarks included a phrase like, “Mike Morris has the 

story,” or “Mike Morris has more.” ONDCP informed us that the narrators 

were hired to read the scripts for the prepackaged new stories, as 

prepared for and approved by ONDCP. Like the HHS VNR narrators, none 

of these narrators were affiliated with any news organization at the time 

the stories were produced or distributed. 

The various ONDCP story packages touched on the addictive nature of 

marijuana, the risks of marijuana use to teenagers, an open letter to 

parents that was sponsored by ONDCP regarding marijuana, the increased 

use of marijuana by teenagers during the summer, the dangers of driving a 

vehicle while under the influence of marijuana, and the respiratory health 

risks of smoking marijuana. Most of the story packages featured 

statements by ONDCP Director John Walters and/or various drug experts. 

ONDCP Prepackaged 

News Stories Were 

Narrated by Contractors 

Unaffiliated with News 

Organizations 
Page 5 GAO-05-643T 

The suggested anchor closing remarks directed viewers to an anti-drug 

website and a toll-free telephone number. 

In May 2004, GAO first addressed the use of prepackaged news stories in 

an opinion2 issued to HHS regarding VNRs it had prepared as part of a 

campaign to inform Medicare recipients about the new prescription drug 

legislation.3

 In a subsequent opinion issued in January 2005, we addressed 

the VNRs produced by ONDCP as part of its National Youth Anti-Drug 

Media Campaign.4

In both of these legal opinions, we concluded that production and 

distribution of prepackaged news stories that concealed the agency’s role 

in producing the story violate the publicity and propaganda prohibition. 

While GAO has long recognized that agencies have a right to inform the 

public about their activities and to defend the administration’s point of 

view on policy matters,5

 there are several statutory limitations on an 

agency’s information dissemination, one of which is the publicity or 

propaganda prohibition. This prohibition, the first version of which was 

enacted in 1951, is usually contained in annual appropriations acts. It 

states that, “No part of any appropriation contained in this or any other 

Act shall be used for publicity or propaganda purposes within the United 

States not heretofore authorized by the Congress.”6

In applying this prohibition, GAO affords agencies a great deal of 

discretion in their informational activities. However, GAO has, through 50 

years of decisions, identified a number of specific activities that are barred 

by the publicity and propaganda prohibition. One of the main targets of 

this prohibition is agency-produced material that is covert as to source. 

 2

In addition to auditing and evaluating programs and activities of the federal government 

and investigating matters related to the use of public money, GAO is also responsible for 

settling all accounts of the federal government. 31 U.S.C. §§ 712, 717, 3526. Pursuant to this 

accounts settlement authority, the Comptroller General issues legal decisions and opinions 

to federal agencies and Members of Congress regarding the proper use of federal funds. 

3

B-302710, May 19, 2004. 

4

B-303495, Jan. 4, 2005. 

5

See, e.g., B-304715, Apr. 27, 2005; B-302504, Mar. 10, 2004; B-184648, Dec. 3, 1975. 

6

See, e.g., Consolidated Appropriations Act, 2005, Pub. L. No. 108-447, div. H, title VI, § 624, 

118 Stat. 2809, 3278 (Dec. 8, 2004). 

GAO’s Legal Opinions 

Agency’s Right to 

Disseminate Information 

Does Not Include Covert 

Propaganda 
Page 6 GAO-05-643T 

Our opinions have emphasized that the critical element of covert 

propaganda is concealment of the government’s role in producing the 

materials.7

 GAO has concluded that agencies have violated the law when 

they undertook activities such as distributing suggested editorials to 

newspapers or hiring pundits to write commentaries without 

acknowledging the government’s sponsorship.8

 In these cases, even though 

the newspapers that printed the opinion pieces may have been aware of 

their source, the newspaper readers did not know of the agency’s role in 

producing the materials. 

Similarly, in the case of the story packages produced by HHS and ONDCP, 

the target audience--the viewing public--was unaware that the material was 

produced by the government. The story packages were clearly designed to 

be aired exactly as the agency produced them and were intended to 

resemble traditional news stories. They were narrated by government 

contract personnel who portrayed reporters and included suggested 

anchor lead-in scripts, announcing it as a news story by the purported 

reporter, which facilitated the unaltered use of the story package. 

Most importantly, the story packages contained no statement or other 

reference to alert television viewers to the fact that the agency was the 

source of the purported news story. These characteristics may lead 

viewers to believe, wrongly, that the piece was an actual news story 

produced by the local television station and narrated by a real reporter. 

Therefore, we concluded that the prepackaged news stories constituted 

covert propaganda and that HHS and ONDCP both violated the prohibition 

on the use of appropriated funds for publicity or propaganda.9

Furthermore, because the agencies had no appropriation available for 

 7

B-229257, June 10, 1988. 

8

See, e.g., B-223098, Oct. 10, 1986; B-229069, Sept. 30, 1987. 

9

Although both HHS and ONDCP pointed to specific statutory provisions that authorized 

them to disseminate information to the public, GAO concluded that such provisions did not 

authorize them to produce unattributed news stories. In both opinions, GAO also 

concluded that the B-roll footage and the slates did not violate the publicity and 

propaganda prohibition because they were designed to be viewed and utilized solely by the 

news organizations, and the agencies had properly disclosed their role in the production of 

the materials to the stations. 

Unattributed Prepackaged 

News Stories Violate 

Publicity and Propaganda 

Prohibition 
Page 7 GAO-05-643T 

covert propaganda, HHS and ONDCP also violated the Antideficiency Act, 

which prohibits obligations in excess of available budget authority.10

In both of these opinions, we also noted:“In a modest but meaningful way, 

the publicity or propaganda restriction helps to mark the boundary 

between an agency making information available to the public and 

agencies creating news unbeknownst to the receiving audience.” In fact, 

the appropriations prohibition is not the only marker that Congress has 

enacted to delineate the boundaries between the government and the free 

American press.11 Statutory limits on the domestic dissemination of news 

reports produced by the federal government reflect concern that allowing 

the 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.12

HHS and ONDCP both commissioned and distributed prepackaged news 

stories and introductory scripts about their activities that were designed to 

be indistinguishable from news stories produced by private news 

broadcasters. In neither case did the agency include any statement or 

other indication in its news stories that disclosed to the television viewing 

audience (the target of the purported news stories) that the agency wrote 

and produced those news stories. In other words, television-viewing 

audiences did not know that stories they watched on television news 

programs about the government were, in fact, prepared by the 

government. We therefore concluded that those prepackaged news stories 

violated the publicity or propaganda prohibition. 

In addition to the HHS and ONDCP opinions, the Comptroller General 

issued a circular letter to the heads of all cabinet departments and federal 

agencies in February of this year to alert agencies to our opinions on 

prepackaged news stories and to remind them of their duty to disclose the 

source of materials that they disseminate to the public.13 GAO decided that 

a governmentwide circular would be appropriate given the increasing use 

 1031 U.S.C. § 1341(a). 

11See, e.g., 22 U.S.C. §§ 1461, 1461-1a (restricting the domestic dissemination of news 

reports originally created by the government for broadcast abroad). 

12B-118654-O.M., Apr. 17, 1979. 

13B-304272, Feb. 17, 2005. 

Circular Letter Advised All 

Agencies of Duty to 

Disclose Source of 

Materials 
Page 8 GAO-05-643T 

of VNRs by the federal government. In fact, our research showed that 

VNRs have been produced by a wide range of federal departments and 

agencies, from the Department of State to the Census Bureau to the 

Transportation Security Administration. 

Mr. Chairman, this concludes my prepared statement. I would be happy to 

respond to any questions regarding our opinions that you or the committee 

may have. 

For further information about this testimony, please contact Susan A. 

Poling, at 202-512-2667 or at polings@gao.gov. Other key contributors to 

this statement were Thomas Armstrong, Jeffrey McDermott, Neill MartinRolsky, and Sheila Rajabiun. 

GAO Contacts And 

Staff 

Acknowledgments 

(976524) 
This is a work of the U.S. government and is not subject to copyright protection in the 

United States. It may be reproduced and distributed in its entirety without further 

permission from GAO. However, because this work may contain copyrighted images or 

other material, permission from the copyright holder may be necessary if you wish to 

reproduce this material separately. 
The Government Accountability Office, the audit, evaluation and 

investigative arm of Congress, exists to support Congress in meeting its 

constitutional responsibilities and to help improve the performance and 

accountability of the federal government for the American people. GAO 

examines the use of public funds; evaluates federal programs and policies; 

and provides analyses, recommendations, and other assistance to help 

Congress make informed oversight, policy, and funding decisions. GAO’s 

commitment to good government is reflected in its core values of 

accountability, integrity, and reliability. 

The fastest and easiest way to obtain copies of GAO documents at no cost 

is through GAO’s Web site (www.gao.gov). Each weekday, GAO posts 

newly released reports, testimony, and correspondence on its Web site. To 

have GAO e-mail you a list of newly posted products every afternoon, go 

to www.gao.gov and select “Subscribe to Updates.” 

The first copy of each printed report is free. Additional copies are $2 each. 

A check or money order should be made out to the Superintendent of 

Documents. GAO also accepts VISA and Mastercard. Orders for 100 or 

more copies mailed to a single address are discounted 25 percent. Orders 

should be sent to: 

U.S. Government Accountability Office 

441 G Street NW, Room LM 

Washington, D.C. 20548 

To order by Phone: Voice: (202) 512-6000 

TDD: (202) 512-2537 

Fax: (202) 512-6061 

Contact: 

Web site: www.gao.gov/fraudnet/fraudnet.htm 

E-mail: fraudnet@gao.gov

Automated answering system: (800) 424-5454 or (202) 512-7470 

Gloria Jarmon, Managing Director, JarmonG@gao.gov (202) 512-4400 

U.S. Government Accountability Office, 441 G Street NW, Room 7125 

Washington, D.C. 20548 

Paul Anderson, Managing Director, AndersonP1@gao.gov (202) 512-4800 

U.S. Government Accountability Office, 441 G Street NW, Room 7149 

Washington, D.C. 20548 

GAO’s Mission 

Obtaining Copies of 

GAO Reports and 

Testimony 

Order by Mail or Phone 

To Report Fraud, 

Waste, and Abuse in 

Federal Programs 

Congressional 

Relations 

Public Affairs 

PRINTED ON RECYCLED PAPER