On March 13, 2005 (Late Ed., Final, Sec. 1, Pg. 1, Col. 2) the New York Times ran a story, "How the Government Makes News; Under Bush, a New Age of Prepackaged News" by David Barstow and Robin Stein; Anne E. Kornblut.
A month later (14 April), PBS reported "FCC Warns Broadcasters To Identify Source Of Video News Releases" where they claim "The General Accountability Office, the research arm for Congress, in February investigated the matter and determined that the prepackaged news funded by the White House Office of National Drug Control Policy and the Centers for Medicare and Medicaid Services constituted 'covert propaganda.'"
Susan Poling (of the GAO) was reported to have said "We concluded that production and distribution of prepackaged news stories that conceal the agency's role in producing the story was covert propaganda and, therefore, violated the prohibition on the use of appropriated funds for publicity or propaganda. Susan Poling can be reached at (202) 512-2667.
Additional Sources:
http://www.gao.gov/decisions/appro/304272.htm
http://www.gao.gov/decisions/appro/304272.pdf
http://www.gao.gov/daybook/050512.htm
http://www.gao.gov/htext/d05643t.html
http://www.gao.gov/highlights/d05643thigh.pdf
http://www.gao.gov/special.pubs/appforum2005/circularltrs.pdf
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