S. 5442: Cost Estimates Improvement Act

This bill would require two congressional scorekeepers—the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT)—to include the cost of servicing the public debt when they estimate the budget effects of legislation, if that cost can be reasonably calculated.

In practical terms, when Congress considers a bill, CBO and JCT usually estimate how much the bill will cost or save. This proposal would change those estimates so they also reflect any added or reduced interest costs on the national debt that result from the bill’s impact on deficits and borrowing.

The bill would amend the Congressional Budget Act of 1974 to add a new rule directing these estimates to account for debt service costs “to the extent practicable.” That wording means the agencies would include those costs when they can, but would not be required to do so if the calculation is not feasible or reliable.

The bill also makes a technical update to the Act’s table of contents to reflect the new section.

Relevant Companies

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