IIB 

113TH CONGRESS 

2D SESSION H. R. 1872 

IN THE SENATE OF THE UNITED STATES 

APRIL 8, 2014 

Received; read twice and referred to the Committee on the Budget 

AN ACT 

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to increase transparency in Federal 

budgeting, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Budget and Account3 ing Transparency Act of 2014’’. 

4 TITLE I—FAIR VALUE 

5 ESTIMATES 

6 SEC. 101. CREDIT REFORM. 

7 (a) IN GENERAL.—Title V of the Congressional 

8 Budget Act of 1974 is amended to read as follows: 

9 ‘‘TITLE V—FAIR VALUE 

10 ‘‘SEC. 500. SHORT TITLE. 

11 ‘‘This title may be cited as the ‘Fair Value Account12 ing Act of 2014’. 

13 ‘‘SEC. 501. PURPOSES. 

14 ‘‘The purposes of this title are to— 

15 ‘‘(1) measure more accurately the costs of Fed16 eral credit programs by accounting for them on a 

17 fair value basis; 

18 ‘‘(2) place the cost of credit programs on a 

19 budgetary basis equivalent to other Federal spend20 ing; 

21 ‘‘(3) encourage the delivery of benefits in the 

22 form most appropriate to the needs of beneficiaries; 

23 and 

24 ‘‘(4) improve the allocation of resources among 

25 Federal programs. 


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1 ‘‘SEC. 502. DEFINITIONS. 

2 ‘‘For purposes of this title: 

3 ‘‘(1) The term ‘direct loan’ means a disburse4 ment of funds by the Government to a non-Federal 

5 borrower under a contract that requires the repay6 ment of such funds with or without interest. The 

7 term includes the purchase of, or participation in, a 

8 loan made by another lender and financing arrange9 ments that defer payment for more than 90 days, in10 cluding the sale of a Government asset on credit 

11 terms. The term does not include the acquisition of 

12 a federally guaranteed loan in satisfaction of default 

13 claims or the price support loans of the Commodity 

14 Credit Corporation. 

15 ‘‘(2) The term ‘direct loan obligation’ means a 

16 binding agreement by a Federal agency to make a 

17 direct loan when specified conditions are fulfilled by 

18 the borrower. 

19 ‘‘(3) The term ‘loan guarantee’ means any 

20 guarantee, insurance, or other pledge with respect to 

21 the payment of all or a part of the principal or inter22 est on any debt obligation of a non-Federal borrower 

23 to a non-Federal lender, but does not include the in24 surance of deposits, shares, or other withdrawable 

25 accounts in financial institutions. 


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1 ‘‘(4) The term ‘loan guarantee commitment’ 

2 means a binding agreement by a Federal agency to 

3 make a loan guarantee when specified conditions are 

4 fulfilled by the borrower, the lender, or any other 

5 party to the guarantee agreement. 

6 ‘‘(5)(A) The term ‘cost’ means the sum of the 

7 Treasury discounting component and the risk com8 ponent of a direct loan or loan guarantee, or a modi9 fication thereof. 

10 ‘‘(B) The Treasury discounting component shall 

11 be the estimated long-term cost to the Government 

12 of a direct loan or loan guarantee, or modification 

13 thereof, calculated on a net present value basis, ex14 cluding administrative costs and any incidental ef15 fects on governmental receipts or outlays. 

16 ‘‘(C) The risk component shall be an amount 

17 equal to the difference between— 

18 ‘‘(i) the estimated long-term cost to the 

19 Government of a direct loan or loan guarantee, 

20 or modification thereof, estimated on a fair 

21 value basis, applying the guidelines set forth by 

22 the Financial Accounting Standards Board in 

23 Financial Accounting Standards #157, or a 

24 successor thereto, excluding administrative 


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1 costs and any incidental effects on govern2 mental receipts or outlays; and 

3 ‘‘(ii) the Treasury discounting component 

4 of such direct loan or loan guarantee, or modi5 fication thereof. 

6 ‘‘(D) The Treasury discounting component of a 

7 direct loan shall be the net present value, at the time 

8 when the direct loan is disbursed, of the following 

9 estimated cash flows: 

10 ‘‘(i) Loan disbursements. 

11 ‘‘(ii) Repayments of principal. 

12 ‘‘(iii) Essential preservation expenses, pay13 ments of interest and other payments by or to 

14 the Government over the life of the loan after 

15 adjusting for estimated defaults, prepayments, 

16 fees, penalties, and other recoveries, including 

17 the effects of changes in loan terms resulting 

18 from the exercise by the borrower of an option 

19 included in the loan contract. 

20 ‘‘(E) The Treasury discounting component of a 

21 loan guarantee shall be the net present value, at the 

22 time when the guaranteed loan is disbursed, of the 

23 following estimated cash flows: 

24 ‘‘(i) Payments by the Government to cover 

25 defaults and delinquencies, interest subsidies, 


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1 essential preservation expenses, or other pay2 ments. 

3 ‘‘(ii) Payments to the Government includ4 ing origination and other fees, penalties, and re5 coveries, including the effects of changes in loan 

6 terms resulting from the exercise by the guar7 anteed lender of an option included in the loan 

8 guarantee contract, or by the borrower of an 

9 option included in the guaranteed loan contract. 

10 ‘‘(F) The cost of a modification is the sum of— 

11 ‘‘(i) the difference between the current es12 timate of the Treasury discounting component 

13 of the remaining cash flows under the terms of 

14 a direct loan or loan guarantee and the current 

15 estimate of the Treasury discounting component 

16 of the remaining cash flows under the terms of 

17 the contract, as modified; and 

18 ‘‘(ii) the difference between the current es19 timate of the risk component of the remaining 

20 cash flows under the terms of a direct loan or 

21 loan guarantee and the current estimate of the 

22 risk component of the remaining cash flows 

23 under the terms of the contract as modified. 

24 ‘‘(G) In estimating Treasury discounting com25 ponents, the discount rate shall be the average interVerDate Mar 15 2010 00:45 Apr 09, 2014 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1872.RFS H1872

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1 est rate on marketable Treasury securities of similar 

2 duration to the cash flows of the direct loan or loan 

3 guarantee for which the estimate is being made. 

4 ‘‘(H) When funds are obligated for a direct loan 

5 or loan guarantee, the estimated cost shall be based 

6 on the current assumptions, adjusted to incorporate 

7 the terms of the loan contract, for the fiscal year in 

8 which the funds are obligated. 

9 ‘‘(6) The term ‘program account’ means the 

10 budget account into which an appropriation to cover 

11 the cost of a direct loan or loan guarantee program 

12 is made and from which such cost is disbursed to 

13 the financing account. 

14 ‘‘(7) The term ‘financing account’ means the 

15 nonbudget account or accounts associated with each 

16 program account which holds balances, receives the 

17 cost payment from the program account, and also 

18 includes all other cash flows to and from the Gov19 ernment resulting from direct loan obligations or 

20 loan guarantee commitments made on or after Octo21 ber 1, 1991. 

22 ‘‘(8) The term ‘liquidating account’ means the 

23 budget account that includes all cash flows to and 

24 from the Government resulting from direct loan obli25 gations or loan guarantee commitments made prior 


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1 to October 1, 1991. These accounts shall be shown 

2 in the budget on a cash basis. 

3 ‘‘(9) The term ‘modification’ means any Gov4 ernment action that alters the estimated cost of an 

5 outstanding direct loan (or direct loan obligation) or 

6 an outstanding loan guarantee (or loan guarantee 

7 commitment) from the current estimate of cash 

8 flows. This includes the sale of loan assets, with or 

9 without recourse, and the purchase of guaranteed 

10 loans (or direct loan obligations) or loan guarantees 

11 (or loan guarantee commitments) such as a change 

12 in collection procedures. 

13 ‘‘(10) The term ‘current’ has the same meaning 

14 as in section 250(c)(9) of the Balanced Budget and 

15 Emergency Deficit Control Act of 1985. 

16 ‘‘(11) The term ‘Director’ means the Director 

17 of the Office of Management and Budget. 

18 ‘‘(12) The term ‘administrative costs’ means 

19 costs related to program management activities, but 

20 does not include essential preservation expenses. 

21 ‘‘(13) The term ‘essential preservation ex22 penses’ means servicing and other costs that are es23 sential to preserve the value of loan assets or collat24 eral. 


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1 ‘‘SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND 

2 REVIEW. 

3 ‘‘(a) IN GENERAL.—For the executive branch, the 

4 Director shall be responsible for coordinating the esti5 mates required by this title. The Director shall consult 

6 with the agencies that administer direct loan or loan guar7 antee programs. 

8 ‘‘(b) DELEGATION.—The Director may delegate to 

9 agencies authority to make estimates of costs. The delega10 tion of authority shall be based upon written guidelines, 

11 regulations, or criteria consistent with the definitions in 

12 this title. 

13 ‘‘(c) COORDINATION WITH THE CONGRESSIONAL

14 BUDGET OFFICE.—In developing estimation guidelines, 

15 regulations, or criteria to be used by Federal agencies, the 

16 Director shall consult with the Director of the Congres17 sional Budget Office. 

18 ‘‘(d) IMPROVING COST ESTIMATES.—The Director 

19 and the Director of the Congressional Budget Office shall 

20 coordinate the development of more accurate data on his21 torical performance and prospective risk of direct loan and 

22 loan guarantee programs. They shall annually review the 

23 performance of outstanding direct loans and loan guaran24 tees to improve estimates of costs. The Office of Manage25 ment and Budget and the Congressional Budget Office 


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1 shall have access to all agency data that may facilitate 

2 the development and improvement of estimates of costs. 

3 ‘‘(e) HISTORICAL CREDIT PROGRAMS COSTS.—The 

4 Director shall review, to the extent possible, historical data 

5 and develop the best possible estimates of adjustments 

6 that would convert aggregate historical budget data to 

7 credit reform accounting. 

8 ‘‘SEC. 504. BUDGETARY TREATMENT. 

9 ‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 

10 year 2017, the President’s budget shall reflect the costs 

11 of direct loan and loan guarantee programs. The budget 

12 shall also include the planned level of new direct loan obli13 gations or loan guarantee commitments associated with 

14 each appropriations request. For each fiscal year within 

15 the five-fiscal year period beginning with fiscal year 2017, 

16 such budget shall include, on an agency-by-agency basis, 

17 subsidy estimates and costs of direct loan and loan guar18 antee programs with and without the risk component. 

19 ‘‘(b) APPROPRIATIONS REQUIRED.—Notwithstanding 

20 any other provision of law, new direct loan obligations may 

21 be incurred and new loan guarantee commitments may be 

22 made for fiscal year 2017 and thereafter only to the extent 

23 that— 

24 ‘‘(1) new budget authority to cover their costs 

25 is provided in advance in an appropriation Act; 


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1 ‘‘(2) a limitation on the use of funds otherwise 

2 available for the cost of a direct loan or loan guar3 antee program has been provided in advance in an 

4 appropriation Act; or 

5 ‘‘(3) authority is otherwise provided in appro6 priation Acts. 

7 ‘‘(c) EXEMPTION FOR DIRECT SPENDING PRO8 GRAMS.—Subsections (b) and (e) shall not apply to— 

9 ‘‘(1) any direct loan or loan guarantee program 

10 that constitutes an entitlement (such as the guaran11 teed student loan program or the veteran’s home 

12 loan guaranty program); 

13 ‘‘(2) the credit programs of the Commodity 

14 Credit Corporation existing on the date of enactment 

15 of this title; or 

16 ‘‘(3) any direct loan (or direct loan obligation) 

17 or loan guarantee (or loan guarantee commitment) 

18 made by the Federal National Mortgage Association 

19 or the Federal Home Loan Mortgage Corporation. 

20 ‘‘(d) BUDGET ACCOUNTING.— 

21 ‘‘(1) The authority to incur new direct loan ob22 ligations, make new loan guarantee commitments, or 

23 modify outstanding direct loans (or direct loan obli24 gations) or loan guarantees (or loan guarantee com25 mitments) shall constitute new budget authority in 


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1 an amount equal to the cost of the direct loan or 

2 loan guarantee in the fiscal year in which definite 

3 authority becomes available or indefinite authority is 

4 used. Such budget authority shall constitute an obli5 gation of the program account to pay to the financ6 ing account. 

7 ‘‘(2) The outlays resulting from new budget au8 thority for the cost of direct loans or loan guaran9 tees described in paragraph (1) shall be paid from 

10 the program account into the financing account and 

11 recorded in the fiscal year in which the direct loan 

12 or the guaranteed loan is disbursed or its costs al13 tered. 

14 ‘‘(3) All collections and payments of the financ15 ing accounts shall be a means of financing. 

16 ‘‘(e) MODIFICATIONS.—An outstanding direct loan 

17 (or direct loan obligation) or loan guarantee (or loan guar18 antee commitment) shall not be modified in a manner that 

19 increases its costs unless budget authority for the addi20 tional cost has been provided in advance in an appropria21 tion Act. 

22 ‘‘(f) REESTIMATES.—When the estimated cost for a 

23 group of direct loans or loan guarantees for a given pro24 gram made in a single fiscal year is re-estimated in a sub25 sequent year, the difference between the reestimated cost 


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1 and the previous cost estimate shall be displayed as a dis2 tinct and separately identified subaccount in the program 

3 account as a change in program costs and a change in 

4 net interest. There is hereby provided permanent indefi5 nite authority for these re-estimates. 

6 ‘‘(g) ADMINISTRATIVE EXPENSES.—All funding for 

7 an agency’s administrative costs associated with a direct 

8 loan or loan guarantee program shall be displayed as dis9 tinct and separately identified subaccounts within the 

10 same budget account as the program’s cost. 

11 ‘‘SEC. 505. AUTHORIZATIONS. 

12 ‘‘(a) AUTHORIZATION FOR FINANCING ACCOUNTS.— 

13 In order to implement the accounting required by this 

14 title, the President is authorized to establish such non15 budgetary accounts as may be appropriate. 

16 ‘‘(b) TREASURY TRANSACTIONS WITH THE FINANC17 ING ACCOUNTS.— 

18 ‘‘(1) IN GENERAL.—The Secretary of the 

19 Treasury shall borrow from, receive from, lend to, or 

20 pay to the financing accounts such amounts as may 

21 be appropriate. The Secretary of the Treasury may 

22 prescribe forms and denominations, maturities, and 

23 terms and conditions for the transactions described 

24 in the preceding sentence, except that the rate of in25 terest charged by the Secretary on lending to financVerDate Mar 15 2010 00:45 Apr 09, 2014 Jkt 039200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H1872.RFS H1872

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1 ing accounts (including amounts treated as lending 

2 to financing accounts by the Federal Financing 

3 Bank (hereinafter in this subsection referred to as 

4 the ‘Bank’) pursuant to section 405(b)) and the rate 

5 of interest paid to financing accounts on uninvested 

6 balances in financing accounts shall be the same as 

7 the rate determined pursuant to section 502(5)(G). 

8 ‘‘(2) LOANS.—For guaranteed loans financed 

9 by the Bank and treated as direct loans by a Fed10 eral agency pursuant to section 406(b)(1), any fee 

11 or interest surcharge (the amount by which the in12 terest rate charged exceeds the rate determined pur13 suant to section 502(5)(G) that the Bank charges to 

14 a private borrower pursuant to section 6(c) of the 

15 Federal Financing Bank Act of 1973 shall be con16 sidered a cash flow to the Government for the pur17 poses of determining the cost of the direct loan pur18 suant to section 502(5). All such amounts shall be 

19 credited to the appropriate financing account. 

20 ‘‘(3) REIMBURSEMENT.—The Bank is author21 ized to require reimbursement from a Federal agen22 cy to cover the administrative expenses of the Bank 

23 that are attributable to the direct loans financed for 

24 that agency. All such payments by an agency shall 

25 be considered administrative expenses subject to secVerDate Mar 15 2010 00:45 Apr 09, 2014 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H1872.RFS H1872

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1 tion 504(g). This subsection shall apply to trans2 actions related to direct loan obligations or loan 

3 guarantee commitments made on or after October 1, 

4 1991. 

5 ‘‘(4) AUTHORITY.—The authorities provided in 

6 this subsection shall not be construed to supersede 

7 or override the authority of the head of a Federal 

8 agency to administer and operate a direct loan or 

9 loan guarantee program. 

10 ‘‘(5) TITLE 31.—All of the transactions pro11 vided in the subsection shall be subject to the provi12 sions of subchapter II of chapter 15 of title 31, 

13 United States Code. 

14 ‘‘(6) TREATMENT OF CASH BALANCES.—Cash 

15 balances of the financing accounts in excess of cur16 rent requirements shall be maintained in a form of 

17 uninvested funds and the Secretary of the Treasury 

18 shall pay interest on these funds. The Secretary of 

19 the Treasury shall charge (or pay if the amount is 

20 negative) financing accounts an amount equal to the 

21 risk component for a direct loan or loan guarantee, 

22 or modification thereof. Such amount received by the 

23 Secretary of the Treasury shall be a means of fi24 nancing and shall not be considered a cash flow of 

25 the Government for the purposes of section 502(5). 


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1 ‘‘(c) AUTHORIZATION FOR LIQUIDATING AC2 COUNTS.—(1) Amounts in liquidating accounts shall be 

3 available only for payments resulting from direct loan obli4 gations or loan guarantee commitments made prior to Oc5 tober 1, 1991, for— 

6 ‘‘(A) interest payments and principal repay7 ments to the Treasury or the Federal Financing 

8 Bank for amounts borrowed; 

9 ‘‘(B) disbursements of loans; 

10 ‘‘(C) default and other guarantee claim pay11 ments; 

12 ‘‘(D) interest supplement payments; 

13 ‘‘(E) payments for the costs of foreclosing, 

14 managing, and selling collateral that are capitalized 

15 or routinely deducted from the proceeds of sales; 

16 ‘‘(F) payments to financing accounts when re17 quired for modifications; 

18 ‘‘(G) administrative costs and essential preser19 vation expenses, if— 

20 ‘‘(i) amounts credited to the liquidating ac21 count would have been available for administra22 tive costs and essential preservation expenses 

23 under a provision of law in effect prior to Octo24 ber 1, 1991; and 


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1 ‘‘(ii) no direct loan obligation or loan guar2 antee commitment has been made, or any modi3 fication of a direct loan or loan guarantee has 

4 been made, since September 30, 1991; or 

5 ‘‘(H) such other payments as are necessary for 

6 the liquidation of such direct loan obligations and 

7 loan guarantee commitments. 

8 ‘‘(2) Amounts credited to liquidating accounts in any 

9 year shall be available only for payments required in that 

10 year. Any unobligated balances in liquidating accounts at 

11 the end of a fiscal year shall be transferred to miscella12 neous receipts as soon as practicable after the end of the 

13 fiscal year. 

14 ‘‘(3) If funds in liquidating accounts are insufficient 

15 to satisfy obligations and commitments of such accounts, 

16 there is hereby provided permanent, indefinite authority 

17 to make any payments required to be made on such obliga18 tions and commitments. 

19 ‘‘(d) REINSURANCE.—Nothing in this title shall be 

20 construed as authorizing or requiring the purchase of in21 surance or reinsurance on a direct loan or loan guarantee 

22 from private insurers. If any such reinsurance for a direct 

23 loan or loan guarantee is authorized, the cost of such in24 surance and any recoveries to the Government shall be in25 cluded in the calculation of the cost. 


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1 ‘‘(e) ELIGIBILITY AND ASSISTANCE.—Nothing in this 

2 title shall be construed to change the authority or the re3 sponsibility of a Federal agency to determine the terms 

4 and conditions of eligibility for, or the amount of assist5 ance provided by a direct loan or a loan guarantee. 

6 ‘‘SEC. 506. TREATMENT OF DEPOSIT INSURANCE AND AGEN7 CIES AND OTHER INSURANCE PROGRAMS. 

8 ‘‘This title shall not apply to the credit or insurance 

9 activities of the Federal Deposit Insurance Corporation, 

10 National Credit Union Administration, Resolution Trust 

11 Corporation, Pension Benefit Guaranty Corporation, Na12 tional Flood Insurance, National Insurance Development 

13 Fund, Crop Insurance, or Tennessee Valley Authority. 

14 ‘‘SEC. 507. EFFECT ON OTHER LAWS. 

15 ‘‘(a) EFFECT ON OTHER LAWS.—This title shall su16 persede, modify, or repeal any provision of law enacted 

17 prior to the date of enactment of this title to the extent 

18 such provision is inconsistent with this title. Nothing in 

19 this title shall be construed to establish a credit limitation 

20 on any Federal loan or loan guarantee program. 

21 ‘‘(b) CREDITING OF COLLECTIONS.—Collections re22 sulting from direct loans obligated or loan guarantees 

23 committed prior to October 1, 1991, shall be credited to 

24 the liquidating accounts of Federal agencies. Amounts so 

25 credited shall be available, to the same extent that they 


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1 were available prior to the date of enactment of this title, 

2 to liquidate obligations arising from such direct loans obli3 gated or loan guarantees committed prior to October 1, 

4 1991, including repayment of any obligations held by the 

5 Secretary of the Treasury or the Federal Financing Bank. 

6 The unobligated balances of such accounts that are in ex7 cess of current needs shall be transferred to the general 

8 fund of the Treasury. Such transfers shall be made from 

9 time to time but, at least once each year.’’. 

10 (b) CONFORMING AMENDMENT.—The table of con11 tents set forth in section 1(b) of the Congressional Budget 

12 and Impoundment Control Act of 1974 is amended by 

13 striking the items relating to title V and inserting the fol14 lowing: 

‘‘TITLE V—FAIR VALUE 

‘‘Sec. 500. Short title. 

‘‘Sec. 501. Purposes. 

‘‘Sec. 502. Definitions. 

‘‘Sec. 503. OMB and CBO analysis, coordination, and review. 

‘‘Sec. 504. Budgetary treatment. 

‘‘Sec. 505. Authorizations. 

‘‘Sec. 506. Treatment of deposit insurance and agencies and other insurance 

programs. 

‘‘Sec. 507. Effect on other laws.’’. 

15 SEC. 102. BUDGETARY ADJUSTMENT. 

16 (a) IN GENERAL.—Section 251(b)(1) of the Balanced 

17 Budget and Emergency Deficit Control Act of 1985 is 

18 amended by adding at the end the following new sentence: 

19 ‘‘A change in discretionary spending solely as a result of 

20 the amendment to title V of the Congressional Budget Act 


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1 of 1974 made by the Budget and Accounting Trans2 parency Act of 2014 shall be treated as a change of con3 cept under this paragraph.’’. 

4 (b) REPORT.—Before adjusting the discretionary 

5 caps pursuant to the authority provided in subsection (a), 

6 the Office of Management and Budget shall report to the 

7 Committees on the Budget of the House of Representa8 tives and the Senate on the amount of that adjustment, 

9 the methodology used in determining the size of that ad10 justment, and a program-by-program itemization of the 

11 components of that adjustment. 

12 (c) SCHEDULE.—The Office of Management and 

13 Budget shall not make an adjustment pursuant to the au14 thority provided in subsection (a) sooner than 60 days 

15 after providing the report required in subsection (b). 

16 SEC. 103. EFFECTIVE DATE. 

17 The amendments made by section 101 shall take ef18 fect beginning with fiscal year 2017. 

19 TITLE II—BUDGETARY 

20 TREATMENT 

21 SEC. 201. CBO AND OMB STUDIES RESPECTING BUDGETING 

22 FOR COSTS OF FEDERAL INSURANCE PRO23 GRAMS. 

24 Not later than 1 year after the date of enactment 

25 of this Act, the Directors of the Congressional Budget OfVerDate Mar 15 2010 00:45 Apr 09, 2014 Jkt 039200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H1872.RFS H1872

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1 fice and of the Office of Management and Budget shall 

2 each prepare a study and make recommendations to the 

3 Committees on the Budget of the House of Representa4 tives and the Senate as to the feasability of applying fair 

5 value concepts to budgeting for the costs of Federal insur6 ance programs. 

7 SEC. 202. ON-BUDGET STATUS OF FANNIE MAE AND 

8 FREDDIE MAC. 

9 Notwithstanding any other provision of law, the re10 ceipts and disbursements, including the administrative ex11 penses, of the Federal National Mortgage Association and 

12 the Federal Home Loan Mortgage Corporation shall be 

13 counted as new budget authority, outlays, receipts, or def14 icit or surplus for purposes of— 

15 (1) the budget of the United States Govern16 ment as submitted by the President; 

17 (2) the congressional budget; and 

18 (3) the Balanced Budget and Emergency Def19 icit Control Act of 1985. 

20 SEC. 203. EFFECTIVE DATE. 

21 Section 202 shall not apply with respect to an enter22 prise (as such term is defined in section 1303 of the Fed23 eral Housing Enterprises Financial Safety and Soundness 

24 Act of 1992 (12 U.S.C. 4502)) after the date that all of 

25 the following have occurred: 


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1 (1) The conservatorship for such enterprise 

2 under section 1367 of such Act (12 U.S.C. 4617) 

3 has been terminated. 

4 (2) The Director of the Federal Housing Fi5 nance Agency has certified in writing that such en6 terprise has repaid to the Federal Government the 

7 maximum amount consistent with minimizing total 

8 cost to the Federal Government of the financial as9 sistance provided to the enterprise by the Federal 

10 Government pursuant to the amendments made by 

11 section 1117 of the Housing and Economic Recovery 

12 Act of 2008 (Public Law 110–289; 122 Stat. 2683) 

13 or otherwise. 

14 (3) The charter for the enterprise has been re15 voked, annulled, or terminated and the authorizing 

16 statute (as such term is defined in such section 

17 1303) with respect to the enterprise has been re18 pealed. 

19 TITLE III—BUDGET REVIEW AND 

20 ANALYSIS 

21 SEC. 301. CBO AND OMB REVIEW AND RECOMMENDATIONS 

22 RESPECTING RECEIPTS AND COLLECTIONS. 

23 Not later than 1 year after the date of enactment 

24 of this Act, the Director of the Office of Management and 

25 Budget shall prepare a study of the history of offsetting 


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1 collections against expenditures and the amount of re2 ceipts collected annually, the historical application of the 

3 budgetary terms ‘‘revenue’’, ‘‘offsetting collections’’, and 

4 ‘‘offsetting receipts’’, and review the application of those 

5 terms and make recommendations to the Committees on 

6 the Budget of the House of Representatives and the Sen7 ate of whether such usage should be continued or modi8 fied. The Director of the Congressional Budget Office 

9 shall review the history and recommendations prepared by 

10 the Director of the Office of Management and Budget and 

11 shall submit comments and recommendations to such 

12 Committees. 

13 SEC. 302. AGENCY BUDGET JUSTIFICATIONS. 

14 Section 1108 of title 31, United States Code, is 

15 amended by inserting at the end the following new sub16 sections: 

17 ‘‘(h)(1) Whenever any agency prepares and submits 

18 written budget justification materials for any committee 

19 of the House of Representatives or the Senate, such agen20 cy shall post such budget justification on the same day 

21 of such submission on the ‘open’ page of the public website 

22 of the agency, and the Office of Management and Budget 

23 shall post such budget justification in a centralized loca24 tion on its website, in the format developed under para25 graph (2). Each agency shall include with its written 


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1 budget justification the process and methodology the agen2 cy is using to comply with the Fair Value Accounting Act 

3 of 2014. 

4 ‘‘(2) The Office of Management and Budget, in con5 sultation with the Congressional Budget Office and the 

6 Government Accountability Office, shall develop and notify 

7 each agency of the format in which to post a budget jus8 tification under paragraph (1). Such format shall be de9 signed to ensure that posted budget justifications for all 

10 agencies— 

11 ‘‘(A) are searchable, sortable, and downloadable 

12 by the public; 

13 ‘‘(B) are consistent with generally accepted 

14 standards and practices for machine-discoverability; 

15 ‘‘(C) are organized uniformly, in a logical man16 ner that makes clear the contents of a budget jus17 tification and relationships between data elements 

18 within the budget justification and among similar 

19 documents; and 

20 ‘‘(D) use uniform identifiers, including for 

21 agencies, bureaus, programs, and projects. 

22 ‘‘(i)(1) Not later than the day that the Office of Man23 agement and Budget issues guidelines, regulations, or cri24 teria to agencies on how to calculate the risk component 

25 under the Fair Value Accounting Act of 2014, it shall subVerDate Mar 15 2010 00:45 Apr 09, 2014 Jkt 039200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H1872.RFS H1872

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25 

HR 1872 RFS

1 mit a written report to the Committees on the Budget of 

2 the House of Representatives and the Senate containing 

3 all such guidelines, regulations, or criteria. 

4 ‘‘(2) For fiscal year 2017 and each of the next four 

5 fiscal years thereafter, the Comptroller General shall sub6 mit an annual report to the Committees on the Budget 

7 of the House of Representatives and the Senate reviewing 

8 and evaluating the progress of agencies in the implementa9 tion of the Fair Value Accounting Act of 2014. 

10 ‘‘(3) Such guidelines, regulations, or criteria shall be 

11 deemed to be a rule for purposes of section 553 of title 

12 5 and shall be issued after notice and opportunity for pub13 lic comment in accordance with the procedures under such 

14 section.’’. 

Passed the House of Representatives April 7, 2014. 

Attest: KAREN L. HAAS, 

Clerk. 


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