Fair-Value Accounting and Budget Act

# Fair-Value Accounting and Budget Act Summary **What It Does:** This bill would require the Congressional Budget Office (CBO)—Congress's official scorekeeper for federal spending—to use "fair-value" accounting when estimating the cost of federal loan programs. Instead of using Treasury interest rates, fair-value estimates would use private-market interest rates to calculate what these loans actually cost taxpayers. The CBO would include these estimates whenever Congress considers new loan programs and in its regular budget outlook reports. **Who It Affects & Key Provisions:** Congress and budget committees would be directly affected, as they would need to use these fair-value estimates when determining whether bills comply with federal budget rules.

Indirectly, this could affect any federal loan programs—such as student loans, small business loans, or mortgage guarantees—by changing how their costs are calculated and potentially making them appear more expensive in budget negotiations. The bill essentially changes the accounting method used to evaluate whether federal lending costs the government more or less than previously estimated. **Current Status:** The bill is currently in committee (as of the 119th Congress), meaning it has been introduced but has not yet been debated or voted on by the full House. No action has been taken since introduction.