Official Summaries

Fair-Value Accounting and Budget Act

This bill requires the Congressional Budget Office (CBO) to provide certain fair-value estimates of federal loan and loan guarantee programs. Under the bill, the fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair-value estimates generally use private-market interest rates to estimate the cost of a loan program rather than rates based on Treasury securities.

The bill requires CBO to include fair-value estimates in (1) any estimate prepared for a measure that establishes or modifies a loan or loan guarantee program, and (2) its publication titled The Budget and Economic Outlook. If CBO provides a fair-value estimate pursuant to this bill, the chairs of the congressional budget committees must use the estimate to determine compliance with budget enforcement requirements.  

The bill also requires the Office of Management and Budget to submit an annual report to Congress on fair-value estimates of the costs of federal credit programs.  

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1388 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 1388

 To amend the Congressional Budget and Impoundment Control Act of 1974 
  to provide for fair-value credit estimates, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 14, 2025

  Mr. Norman (for himself, Mr. Grothman, Mr. Weber of Texas, and Mr. 
    Self) introduced the following bill; which was referred to the 
Committee on the Budget, and in addition to the Committee on Rules, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Congressional Budget and Impoundment Control Act of 1974 
  to provide for fair-value credit estimates, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair-Value Accounting and Budget 
Act''.

SEC. 2. FAIR-VALUE CREDIT ESTIMATES.

    (a) Fair-Value Estimates.--Part A of title IV of the Congressional 
Budget and Impoundment Control Act of 1974 is amended by adding at the 
end the following:

                     ``fair-value credit estimates

    ``Sec. 407.  (a) Fair-Value Estimates.--Any estimate prepared by 
the Director of the Congressional Budget Office for a measure that 
establishes or modifies any program providing loans or loan guarantees 
shall provide a fair-value estimate of such loan or loan guarantee 
program.
    ``(b) Baseline Estimates.--The Congressional Budget Office shall 
include estimates of loan and loan guarantee programs, on a fair-value 
and credit reform basis, as practicable, in the Office's publication 
entitled `The Budget and Economic Outlook' (or any successor report).
    ``(c) Enforcement.--If the Director of the Congressional Budget 
Office provides an estimate pursuant to subsection (a), the chair of 
the Committee on the Budget of the House of Representatives or the 
Senate shall use such estimate to determine compliance with this Act 
and other budget enforcement requirements.
    ``(d) Annual Report.--In 2026 and each year thereafter, not later 
than 90 days after the date the President submits to Congress a budget 
under section 1105(a) of title 31, United States Code, the Director of 
the Office of Management and Budget shall submit a report, to the 
Committees on the Budget of the House of Representatives and the 
Senate, on fair-value estimates of the cost of Federal credit programs.
    ``(e) Definition of Fair-Value.--In carrying out this section, the 
Director of the Congressional Budget Office and the Director of the 
Office of Management and Budget shall use the definition of `fair-
value' as set forth in the publication of the Government Accounting 
Standards Board, issued in February 2015, entitled `Fair Value 
Measurement and Application'.''.
    (b) Clerical Amendment.--The table of contents for the 
Congressional Budget and Impoundment Control Act of 1974 Act set forth 
in section 1(b) of such Act is amended by inserting after the item 
relating to section 406 the following new item:

``Sec. 407. Fair-value credit estimates.''.
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