Bill > HR1388

This bill aims to improve federal budget accounting by requiring the Congressional Budget Office (CBO) to provide "fair-value" estimates for federal loan and loan guarantee programs. Fair-value accounting is a method of calculating the true economic cost of these programs by considering market risks and potential future financial outcomes, rather than using traditional accounting methods. Specifically, the bill mandates that CBO provide fair-value estimates for any measure establishing or modifying loan programs, include these estimates in their budget outlook publications, and use these estimates for budget enforcement purposes. The bill also requires the Office of Management and Budget to submit an annual report on fair-value estimates of federal credit programs, starting in 2026. The definition of "fair-value" will be based on the Government Accounting Standards Board's 2015 publication on fair value measurement. By implementing these requirements, the bill seeks to provide a more transparent and accurate representation of the financial implications of federal credit programs, helping policymakers and the public better understand the true costs and risks associated with government lending initiatives.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1388/all-info