Per the article: "BBG spokeswoman Lynne Weil... stressed to Business Insider that the BBG is separate from Pentagon Information Operations (IO)."
Also, from the actual legislation: "(a) IN GENERAL.--No funds authorized to be appropriated to the Department of State or the Broadcasting Board of Governors shall be used to influence public opinion in the United States." https://www.govinfo.gov/content/pkg/BILLS-112hr5736ih/pdf/BI...
AFAICT, the intention and purpose behind the law was to permit domestic distribution of material published overseas. Otherwise, there'd be no simple way for Americans to actually see and discuss the substance of our own propaganda.
That is a load of FUD someone fed you. All that really changed was that US funded media like Voice of America wasn't explicitly blocked in the US.
VoA produces pro-US view point media in 46 languages. The most extreme thing they do is air a ton of classes on learning English and broadcast into other countries that don't want it.
When did you quit the force? Targeting US citizens has been allowed for almost 10 years, now.
Source: https://www.businessinsider.com/us-domestic-propaganda-offic...