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

Hozzl · 2025-02-22T09:06:54Z

Explore the details of House Bill 1388 To amend the Congressional Budget and Impoundment Control Act of 1974 to provide for fair-value credit estimates, and for other purposes. currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on undefined. Stay informed on legislative developments.

2/22/2025, 9:06 AM

Summary of Bill HR 1388

Bill 119 hr 1388, also known as the Fair-Value Credit Estimation Act, aims to amend the Congressional Budget and Impoundment Control Act of 1974. The main purpose of this bill is to require fair-value credit estimates when evaluating the cost of federal credit programs.

Currently, the government uses a method called "credit reform accounting" to estimate the cost of federal credit programs. This method does not take into account the market risk associated with these programs, leading to potentially inaccurate cost estimates. The Fair-Value Credit Estimation Act seeks to address this issue by requiring the use of fair-value estimates, which would take into consideration the market risk and provide a more accurate cost assessment.

In addition to requiring fair-value credit estimates, the bill also includes provisions for improving transparency and accountability in the budgeting process. This includes requiring the Office of Management and Budget to provide detailed explanations for any discrepancies between fair-value estimates and credit reform estimates. Overall, the Fair-Value Credit Estimation Act aims to provide a more accurate and transparent assessment of the cost of federal credit programs. By requiring fair-value estimates, the bill seeks to ensure that Congress has the necessary information to make informed decisions about these programs.

Congressional Summary of HR 1388

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 Status of Bill HR 1388

Bill HR 1388 is currently in the status of Bill Introduced since February 14, 2025. Bill HR 1388 was introduced during Congress 119 and was introduced to the House on February 14, 2025. Bill HR 1388's most recent activity 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. as of February 14, 2025