Bill Summary
The "Cost Estimates Improvement Act" aims to amend the Congressional Budget Act of 1974 by requiring that any cost estimates prepared by the Congressional Budget Office (CBO) or the Joint Committee on Taxation (JCT) include the costs associated with servicing the public debt. This amendment acknowledges the financial implications of public debt and seeks to ensure that such costs are factored into budgetary estimates, providing a more comprehensive understanding of the nation's fiscal responsibilities. The legislation also includes a clerical amendment to update the table of contents of the Act to reflect this new section.
Possible Impacts
The "Cost Estimates Improvement Act" outlined in the legislation could have several impacts on individuals and society as a whole. Here are three examples:
1. **Informed Decision-Making for Policymakers**: By requiring the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) to include debt servicing costs in their estimates, lawmakers would be better informed about the long-term financial implications of their fiscal policies. This could lead to more prudent decision-making regarding spending and tax policies, ultimately affecting how public funds are allocated. Individuals may see more sustainable fiscal policies that could prevent future tax increases or cuts to essential services.
2. **Transparency and Accountability**: The inclusion of debt servicing costs in budget estimates can enhance transparency in government financial reporting. Citizens and analysts will have a clearer understanding of the true costs associated with government spending and tax changes. This increased transparency could lead to greater public scrutiny of government actions, empowering voters to hold their representatives accountable for decisions that contribute to the national debt and affect future generations.
3. **Impact on Public Services and Benefits**: If debt servicing costs are more accurately reflected in budget estimates, it may influence the allocation of resources towards public services and benefits. For instance, if servicing the national debt takes a larger share of the budget, government programs that directly benefit individuals—such as healthcare, education, and social services—could face funding challenges. This may result in reduced access to essential services for citizens, particularly those reliant on government assistance programs.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 991 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 991
To amend the Congressional Budget Act of 1974 to provide that any
estimate prepared by the Congressional Budget Office or the Joint
Committee on Taxation shall include costs relating to servicing the
public debt, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
February 5, 2025
Mr. Cloud (for himself, Mr. Meuser, Mr. Case, Mr. McClintock, Mr.
Golden of Maine, Ms. Perez, Mr. Grothman, Mr. McCormick, Mr. Norman,
Mr. Rouzer, Mr. Huizenga, Mr. Weber of Texas, Mr. Obernolte, Mr.
Edwards, and Mr. Collins) introduced the following bill; which was
referred to the Committee on Rules, and in addition to the Committee on
the Budget, 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 Act of 1974 to provide that any
estimate prepared by the Congressional Budget Office or the Joint
Committee on Taxation shall include costs relating to servicing the
public debt, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Cost Estimates Improvement Act''.
SEC. 2. CBO AND JCT ESTIMATES TO INCLUDE DEBT SERVICING COSTS.
(a) In General.--The Congressional Budget and Impoundment Control
Act of 1974 (2 U.S.C. 621 et seq.) is amended by inserting after
section 402 the following:
``estimates to include debt servicing costs
``Sec. 403. Any estimate prepared by the Director of the
Congressional Budget Office under section 402, and any estimate
prepared by the Joint Committee on Taxation, shall include, to the
extent practicable, the costs (if any) of servicing the public debt.''.
(b) Clerical Amendment.--The table of contents of such Act is
amended by inserting after the item relating to section 402 the
following:
``403. Estimates to include debt servicing costs.''.
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