H.R.1388 - Fair-Value Accounting and Budget Act (119th Congress)
Summary
H.R.1388, the "Fair-Value Accounting and Budget Act," aims to amend the Congressional Budget and Impoundment Control Act of 1974. The amendment focuses on incorporating fair-value credit estimates for federal loan and loan guarantee programs. This bill mandates the Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) to use fair-value estimates as defined by the Government Accounting Standards Board (GASB).
Expected Effects
The primary effect of this bill would be to change how the cost of federal credit programs is calculated and reported. By using fair-value estimates, the government aims to provide a more accurate and comprehensive picture of the long-term costs and risks associated with these programs. This could lead to more informed decision-making by Congress regarding budget allocations and program design.
Potential Benefits
- More accurate cost assessments of federal credit programs.
- Improved transparency in government budgeting and financial reporting.
- Enhanced accountability for the financial impact of loan and loan guarantee programs.
- Better-informed decisions by Congress regarding budget allocations.
- Potential for more efficient allocation of resources by identifying programs with hidden costs.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased complexity in budget calculations and reporting.
- Possible disagreements over the interpretation and application of fair-value estimates.
- Increased administrative burden on the CBO and OMB.
- Potential for political manipulation of fair-value estimates to justify certain policy outcomes.
- May lead to reduced lending if fair value estimates are higher than current estimates.
Constitutional Alignment
The bill aligns with the Constitution's emphasis on fiscal responsibility and transparency. Article I, Section 9, Clause 7 states that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time." H.R.1388 seeks to improve the accuracy of these statements, thus promoting greater accountability. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).