H.R. 1388 · Where this bill is now
In committee
Introduced in the House, sent 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, Feb 14, 2025
What this bill does
In plain words · AI-written from the official summaryChanges how federal loan costs are measured
When the government makes or guarantees loans, it needs to estimate how much those programs will cost. Right now, the way it calculates costs uses one method. This bill says the Congressional Budget Office must also calculate costs using what's called fair value, which is based on what private lenders would charge instead of government rates. These new estimates would then be used when Congress checks whether spending stays within budget limits.
How it affects you
This mostly affects how Congress and budget analysts measure the true cost of loan programs like student loans or small-business lending. You won't see a direct change, but lawmakers will have more information when they decide whether to create or expand federal loan programs.
Read the official summary (Introduced in House, Feb 14, 2025)
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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 1388
A BILL
Fair-Value Accounting and Budget Act
Sponsor: Rep. Ralph Norman (R-SC-5) · Introduced Feb 14, 2025 · Economics and Public Finance · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 14, 2025: “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.”