that would convert aggregate historical budget data to 
credit reform accounting. 
‘‘SEC. 504. BUDGETARY TREATMENT. 
‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 
year 1992, the President’s budget shall reflect the Treas-
ury discounting component of direct loan and loan guar-
antee programs. Beginning with fiscal year 2015, the 
President’s budget shall reflect the costs of direct loan and 
loan guarantee programs. The budget shall also include 
the planned level of new direct loan obligations or loan 
guarantee commitments associated with each appropria-
tions request. 
‘‘(b) APPROPRIATIONS REQUIRED.—Notwithstanding 
any other provision of law, new direct loan obligations may 
be incurred and new loan guarantee commitments may be 
made for fiscal year 1992 and thereafter only to the extent 
that— 
‘‘(1) new budget authority to cover their costs 
is provided in advance in an appropriation Act; 
‘‘(2) a limitation on the use of funds otherwise 
available for the cost of a direct loan or loan guar-
antee program has been provided in advance in an 
appropriation Act; or 
‘‘(3) authority is otherwise provided in appro-
priation Acts. 
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‘‘(c) EXEMPTION
FOR
DIRECT
SPENDING
PRO-
GRAMS.—Subsections (b) and (e) shall not apply to a di-
rect loan or loan guarantee program that— 
‘‘(1) constitutes an entitlement (such as the 
guaranteed student loan program or the veteran’s 
home loan guaranty program); or 
‘‘(2) all existing credit programs of the Com-
modity Credit Corporation on the date of enactment 
of this title. 
‘‘(d) BUDGET ACCOUNTING.— 
‘‘(1) The authority to incur new direct loan ob-
ligations, make new loan guarantee commitments, or 
modify outstanding direct loans (or direct loan obli-
gations) or loan guarantees (or loan guarantee com-
mitments) shall constitute new budget authority in 
an amount equal to the cost of the direct loan or 
loan guarantee in the fiscal year in which definite 
authority becomes available or indefinite authority is 
used. Such budget authority shall constitute an obli-
gation of the program account to pay to the financ-
ing account. 
‘‘(2) The outlays resulting from new budget au-
thority for the cost of direct loans or loan guaran-
tees described in paragraph (1) shall be paid from 
the program account into the financing account and 
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recorded in the fiscal year in which the direct loan 
or the guaranteed loan is disbursed or its costs al-
tered. 
‘‘(3) All collections and payments of the financ-
ing accounts shall be a means of financing. 
‘‘(e) MODIFICATIONS.—An outstanding direct loan 
(or direct loan obligation) or loan guarantee (or loan guar-
antee commitment) shall not be modified in a manner that 
increases its costs unless budget authority for the addi-
tional cost has been provided in advance in an appropria-
tion Act. 
‘‘(f) REESTIMATES.—When the estimated cost for a 
group of direct loans or loan guarantees for a given pro-
gram made in a single fiscal year is re-estimated in a sub-
sequent year, the difference between the reestimated cost 
and the previous cost estimate shall be displayed as a dis-
tinct and separately identified subaccount in the program 
account as a change in program costs and a change in 
net interest. There is hereby provided permanent indefi-
nite authority for these re-estimates. 
‘‘(g) ADMINISTRATIVE EXPENSES.—All funding for 
an agency’s administrative costs associated with a direct 
loan or loan guarantee program shall be displayed as dis-
tinct and separately identified subaccounts within the 
same budget account as the program’s cost. 
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‘‘SEC. 505. AUTHORIZATIONS. 
‘‘(a) AUTHORIZATION FOR FINANCING ACCOUNTS.— 
In order to implement the accounting required by this 
title, the President is authorized to establish such non- 
budgetary accounts as may be appropriate. 
‘‘(b) TREASURY TRANSACTIONS WITH THE FINANC-
ING ACCOUNTS.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury shall borrow from, receive from, lend to, or 
pay to the financing accounts such amounts as may 
be appropriate. The Secretary of the Treasury may 
prescribe forms and denominations, maturities, and 
terms and conditions for the transactions described 
in the preceding sentence, except that the rate of in-
terest charged by the Secretary on lending to financ-
ing accounts (including amounts treated as lending 
to financing accounts by the Federal Financing 
Bank (hereinafter in this subsection referred to as 
the ‘Bank’) pursuant to section 405(b)) and the rate 
of interest paid to financing accounts on uninvested 
balances in financing accounts shall be the same as 
the rate determined pursuant to section 502(7). 
‘‘(2) LOANS.—For guaranteed loans financed 
by the Bank and treated as direct loans by a Fed-
eral agency pursuant to section 406(b)(1), any fee 
or interest surcharge (the amount by which the in-
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