What This Bill Does · Plain English
Summary · Congress.gov
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.
Frequently Asked Questions
Did HR.1388 pass?
HR.1388 is still alive. Current stage: COMMITTEE. Pass likelihood: 37%.
What does HR.1388 do?
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 …
Who sponsored HR.1388?
HR.1388 was sponsored by Ralph Norman (R-South Carolina).
Full Bill Text
119 HR 1388 IH: Fair-Value Accounting and Budget Act U.S. House of Representatives 2025-02-14 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 1388 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. 1. Short title This Act may be cited as the Fair-Value Accounting and Budget Act . 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: 407. Fair-value credit estimates (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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