Cost Estimate Clarity Act

Summary#

This bill, the Cost Estimate Clarity Act, changes the rules for how the Congressional Budget Office (CBO) writes formal cost estimates. It amends section 402 of the Congressional Budget Act of 1974 to add a new subsection called "Effects of Baseline." Under the change, when CBO prepares an estimate it must, to the greatest extent practicable, include a description of how using baseline assumptions (as defined in section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985) affects that estimate. The bill lists three specific items CBO should provide: (1) a quantitative estimate of the difference between the normal estimate and the cost if baseline assumptions were not used; (2) which baseline assumption caused that difference; and (3) an explanation of any programs or provisions for which the baseline assumptions make the estimate show lower or no budgetary cost compared with actual expected federal expenditures, including cases where the baseline assumes a program, benefit, or payment rate will be extended or continued.

What it means for you#

• CBO will try to show how baseline assumptions change the reported cost of a proposal.
• Members of Congress, staff, and the public may see extra details in CBO estimates explaining differences caused by baseline choices.
• The bill sets what CBO should include in its written estimates; it does not itself change program rules or spending levels.

Expenses#

No publicly available information on the budgetary cost to implement this reporting change or on any other fiscal impacts is included in the bill text or provided metadata.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.