Fair-Value Accounting and Budget Act | ChamberLight

IN COMMITTEE· 119TH CONGRESS

House BillHR 1388Congressional oversightGovernment lending and loan guarantees

Fair-Value Accounting and Budget Act

INTRO FEB 14· LAST ACTION FEB 14

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WHAT THE BILL DOES

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This bill matters because it changes how the government measures the cost of its loan programs, which can significantly influence budgeting and policy decisions. If the government uses fair-value accounting, loan programs might appear more costly on paper than they do under the current system, as fair value includes a risk premium that current methods don't always fully capture. This could lead lawmakers to scrutinize federal loan programs more closely, potentially making it harder to establish new ones or expand existing ones.

Voters should care because how costs are calculated affects how taxpayer money is spent and how readily the government can offer financial assistance. A shift to fair-value accounting could promote greater transparency about the true economic cost of federal credit programs, but it could also make these programs seem more expensive, potentially leading to fewer opportunities for federal loans or guarantees, which support millions of Americans.

KEY PROVISIONS

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PROVISION 01

Requires the Congressional Budget Office (CBO) to provide fair-value estimates for any new or modified federal loan or loan guarantee program.

This introduces a new, market-based way of assessing the cost of government loans, potentially showing them as more expensive.

PROVISION 02

Mandates that fair-value estimates be included in the CBO's 'The Budget and Economic Outlook' report.

This ensures that fair-value costs are regularly presented alongside traditional estimates in key budget documents.

PROVISION 03

Requires the chairs of the House and Senate Budget Committees to use fair-value estimates for budget enforcement.

This makes fair-value estimates the official metric for determining compliance with budget rules for credit programs, giving them significant weight.

PROVISION 04

Directs the Office of Management and Budget (OMB) to submit an annual report on fair-value estimates of federal credit programs.

This provides ongoing transparency and oversight of the full economic cost of all federal loan activities.

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ACTION TIMELINE

2 EVENTS

FEB 14

Introduced in House

INTROREFERRAL

FEB 14

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.

INTROREFERRAL

BILL INFO

TypeHouse Bill

NumberHR 1388

Congress119th

StatusIn Committee

IntroducedFeb 14, 2025

Last actionFeb 14, 2025

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IN COMMITTEE· 119TH CONGRESS · BUDGET COMMITTEE · INTRODUCED FEB 14, 2025

House BillHR 1388Congressional oversightGovernment lending and loan guarantees

Fair-Value Accounting and Budget Act

INTRODUCED FEB 14, 2025· LAST ACTION FEB 14, 2025

PASSAGE CHANCES

—%

READING

3 min

COSPONSORS

COMPLEXITY

Moderate

Call my reps

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed House

Passed Senate

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

Requires the Congressional Budget Office (CBO) to provide fair-value estimates for any new or modified federal loan or loan guarantee program.

This introduces a new, market-based way of assessing the cost of government loans, potentially showing them as more expensive.

med

Mandates that fair-value estimates be included in the CBO's 'The Budget and Economic Outlook' report.

This ensures that fair-value costs are regularly presented alongside traditional estimates in key budget documents.

high

Requires the chairs of the House and Senate Budget Committees to use fair-value estimates for budget enforcement.

This makes fair-value estimates the official metric for determining compliance with budget rules for credit programs, giving them significant weight.

med

Directs the Office of Management and Budget (OMB) to submit an annual report on fair-value estimates of federal credit programs.

This provides ongoing transparency and oversight of the full economic cost of all federal loan activities.

DEADLINES & DATES

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An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Beginning in 2026, not later than 90 days after the President submits the annual budget.

Office of Management and Budget (OMB) Director to submit an annual report on fair-value estimates of Federal credit programs to Congress.

GLOSSARY

AI-written

Fair-value credit estimates: A way of calculating the cost of government loans and loan guarantees that includes market risks, similar to how a private bank would assess its loans, rather than just the expected losses from defaults.
Congressional Budget Office (CBO): A nonpartisan agency that provides Congress with independent analyses of budgetary and economic issues.
Loan guarantee program: A government program where the government promises to repay a loan if the borrower defaults, making it easier for people to get loans from private lenders.
Office of Management and Budget (OMB): A part of the Executive Office of the President that helps the President prepare the budget and oversees how federal agencies spend money.
Congressional Budget and Impoundment Control Act of 1974: A law that established the current federal budget process and created the Congressional Budget Office (CBO).
Credit reform basis: The current accounting method used by the government for direct loans and loan guarantees, which measures the estimated long-term cost to the government, primarily focusing on expected defaults, rather than market risks.

ACTION TIMELINE

2 EVENTS

FEB 14, 25

Introduced in House

INTROREFERRAL

FEB 14, 25

INTROREFERRAL

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Feb 14, 2025

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Fair-Value Accounting and Budget Act

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Fair-Value Accounting and Budget Act

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Fair-Value Accounting and Budget Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

SPONSORSHIP

ACTION TIMELINE

BILL INFO

READER REACTIONS

Discussion

Fair-Value Accounting and Budget Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

DEADLINES & DATES

GLOSSARY

ACTION TIMELINE

SPONSORS

READER REACTIONS

What do you think?

Discussion

MORE INFORMATION

Committee Referrals

In the News

Perriello, Macy hit McGuire, Cline on data centers. Here’s what they’re talking about (and what they’re not saying)

Perriello, Macy hit McGuire, Cline on data centers. Here’s what they’re talking about (and what they’re not saying)

Perriello, Macy hit McGuire, Cline on data centers. Here’s what they’re talking about (and what they’re not saying)

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