I 

115TH CONGRESS 

2D SESSION H. R. 5381 

To reduce and minimize the credit, guarantee, and insurance risk of all 

Federal Government programs by transferring such risk to the private 

sector at market terms, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 22, 2018 

Mr. ROYCE of California (for himself, Mr. LUETKEMEYER, and Mr. ROSS) introduced the following bill; which was referred to the Committee on Oversight and Government Reform 

A BILL 

To reduce and minimize the credit, guarantee, and insurance 

risk of all Federal Government programs by transferring 

such risk to the private sector at market terms, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Government Risk and 

5 Taxpayer Exposure Reduction Act of 2018’’ or the 

6 ‘‘GRATER Act of 2018’’. 


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1 SEC. 2. POLICY. 

2 (a) MINIMIZATION OF GOVERNMENT RISK.—It is the 

3 policy of the United States to reduce and minimize the 

4 credit, guarantee, and insurance risk of Federal Govern5 ment programs in all departments and agencies on an on6 going basis to the maximum extent possible by transfer7 ring all such risk to the private sector at market terms 

8 through a variety of financial instruments in a sustained 

9 and transparent manner. 

10 (b) USE OF PRIVATE RISK CAPACITY.—In the devel11 opment and administration of Federal Government pro12 grams and awards in all departments and agencies, it is 

13 the policy of the United States to utilize to the maximum 

14 extent possible, the use of private risk capacity, consistent 

15 with the goals and purposes of such programs and awards. 

16 SEC. 3. STRATEGY AND IMPLEMENTATION. 

17 (a) PLAN.—Notwithstanding any other provision of 

18 law, each department and agency of the Federal Govern19 ment responsible for the administration of any credit, 

20 guarantee, or insurance program shall, for each fiscal 

21 year, develop and implement a strategy and implementa22 tion plan for such program to transfer, to the maximum 

23 extent possible, all such credit, guarantee, and insurance 

24 risk to the private sector at market terms through a vari25 ety of financial instruments in a sustained and trans26 parent manner. The initial strategy and implementation 


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1 plan, after a 60-day period of public comment, shall be 

2 published in the Federal Register not later than the expi3 ration of the 6-month period beginning on the date of the 

4 enactment of this Act. 

5 (b) USE OF PRIVATE INSURANCE RISK CAPACITY.— 

6 Any department or agency of the Federal Government 

7 that is responsible for the administration and award of 

8 any grants or aid shall, in setting the terms of each new 

9 award, seek to utilize or encourage the development of, 

10 to the maximum extent possible, insurance risk capacity 

11 in the private sector both in the United States and in any 

12 non-United States economy that is the recipient or host 

13 to such grant or aid, at market terms through a variety 

14 of financial instruments in a sustained and transparent 

15 manner. The strategy and implementation plans required 

16 in subsection (a) shall address the utilization and develop17 ment of private risk capacity in program and award devel18 opment and administration. 

19 SEC. 4. REPORTING. 

20 Each department and agency referred to in section 

21 3 shall submit the strategy and implementation plan devel22 oped for each fiscal year pursuant to such section to the 

23 Director of the Office of Management and Budget. For 

24 each fiscal year, the Director shall compile a list of all 

25 credit, guarantee, and insurance risk transfer programs 


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1 of departments and agencies of the Federal Government 

2 and submit such list to the President and the Congress 

3 together with a summary of the success to date of each 

4 such program, the current and aggregate totals of credit 

5 risk transferred since the date of the enactment of this 

6 Act, and any recommendations to enhance or expand such 

7 programs. 

Æ 


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