The Bush Administration says The GAO says it's illegal for the government to spend money on covert domestic propaganda: for example, sending out fake TV "news stories" with fake journalists to push the Administration's policies. The Justice Department and OMB say otherwise, and have told the agencies they can go right ahead and do what the GAO says is against the law.
Like the DeLay nonsense, this is all a gift to the Democrats, who, if they're smart, will fight the next two elections on corruption and lawbreaking in Washington. If I were running Wesley Clark's or Mark Warner's Presidential campaign, I'd try to make this issue my own.