I 
114TH CONGRESS 
1ST SESSION 
H. R. 119 
To amend the Balanced Budget and Emergency Deficit Control Act of 1985 
to increase transparency in Federal budgeting, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 6, 2015 
Mr. GARRETT introduced the following bill; which was referred to the Com-
mittee on the Budget, and in addition to the Committee on Oversight and 
Government Reform, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 to increase transparency in Federal 
budgeting, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Budget and Account-
ing Transparency Act of 2015’’. 
VerDate Sep 11 2014 
04:29 Jan 09, 2015
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H119.IH
H119
emcdonald on DSK67QTVN1PROD with BILLS
TITLE I—FAIR VALUE 
ESTIMATES 
SEC. 101. CREDIT REFORM. 
(a) IN GENERAL.—Title V of the Congressional 
Budget Act of 1974 is amended to read as follows: 
‘‘TITLE V—FAIR VALUE 
‘‘SEC. 501. PURPOSES. 
‘‘The purposes of this title are to— 
‘‘(1) measure more accurately the costs of Fed-
eral credit programs by accounting for them on a 
fair value basis; 
‘‘(2) place the cost of credit programs on a 
budgetary basis equivalent to other Federal spend-
ing; 
‘‘(3) encourage the delivery of benefits in the 
form most appropriate to the needs of beneficiaries; 
and 
‘‘(4) improve the allocation of resources among 
Federal programs. 
‘‘SEC. 502. DEFINITIONS. 
‘‘For purposes of this title: 
‘‘(1) The term ‘direct loan’ means a disburse-
ment of funds by the Government to a non-Federal 
borrower under a contract that requires the repay-
ment of such funds with or without interest. The 
VerDate Sep 11 2014 
04:29 Jan 09, 2015
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H119.IH
H119
emcdonald on DSK67QTVN1PROD with BILLS
on the current assumptions, adjusted to incorporate 
the terms of the loan contract, for the fiscal year in 
which the funds are obligated. 
‘‘(6) The term ‘program account’ means the 
budget account into which an appropriation to cover 
the cost of a direct loan or loan guarantee program 
is made and from which such cost is disbursed to 
the financing account. 
‘‘(7) The term ‘financing account’ means the 
nonbudget account or accounts associated with each 
program account which holds balances, receives the 
cost payment from the program account, and also 
includes all other cash flows to and from the Gov-
ernment resulting from direct loan obligations or 
loan guarantee commitments made on or after Octo-
ber 1, 1991. 
‘‘(8) The term ‘liquidating account’ means the 
budget account that includes all cash flows to and 
from the Government resulting from direct loan obli-
gations or loan guarantee commitments made prior 
to October 1, 1991. These accounts shall be shown 
in the budget on a cash basis. 
‘‘(9) The term ‘modification’ means any Gov-
ernment action that alters the estimated cost of an 
outstanding direct loan (or direct loan obligation) or 
VerDate Sep 11 2014 
04:29 Jan 09, 2015
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H119.IH
H119
emcdonald on DSK67QTVN1PROD with BILLS
an outstanding loan guarantee (or loan guarantee 
commitment) from the current estimate of cash 
flows. This includes the sale of loan assets, with or 
without recourse, and the purchase of guaranteed 
loans (or direct loan obligations) or loan guarantees 
(or loan guarantee commitments) such as a change 
in collection procedures. 
‘‘(10) The term ‘current’ has the same meaning 
as in section 250(c)(9) of the Balanced Budget and 
Emergency Deficit Control Act of 1985. 
‘‘(11) The term ‘Director’ means the Director 
of the Office of Management and Budget. 
‘‘(12) The term ‘administrative costs’ means 
costs related to program management activities, but 
does not include essential preservation expenses. 
‘‘(13) The term ‘essential preservation ex-
penses’ means servicing and other costs that are es-
sential to preserve the value of loan assets or collat-
eral. 
‘‘SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND 
REVIEW. 
‘‘(a) IN GENERAL.—For the executive branch, the 
Director shall be responsible for coordinating the esti-
mates required by this title. The Director shall consult 
VerDate Sep 11 2014 
04:29 Jan 09, 2015
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H119.IH
H119
emcdonald on DSK67QTVN1PROD with BILLS
with the agencies that administer direct loan or loan guar-
antee programs. 
‘‘(b) DELEGATION.—The Director may delegate to 
agencies authority to make estimates of costs. The delega-
tion of authority shall be based upon written guidelines, 
regulations, or criteria consistent with the definitions in 
this title. 
‘‘(c) COORDINATION WITH
THE CONGRESSIONAL 
BUDGET OFFICE.—In developing estimation guidelines, 
regulations, or criteria to be used by Federal agencies, the 
Director shall consult with the Director of the Congres-
sional Budget Office. 
‘‘(d) IMPROVING COST ESTIMATES.—The Director 
and the Director of the Congressional Budget Office shall 
coordinate the development of more accurate data on his-
torical performance and prospective risk of direct loan and 
loan guarantee programs. They shall annually review the 
performance of outstanding direct loans and loan guaran-
tees to improve estimates of costs. The Office of Manage-
ment and Budget and the Congressional Budget Office 
shall have access to all agency data that may facilitate 
the development and improvement of estimates of costs. 
‘‘(e) HISTORICAL CREDIT PROGRAMS COSTS.—The 
Director shall review, to the extent possible, historical data 
and develop the best possible estimates of adjustments 
VerDate Sep 11 2014 
04:29 Jan 09, 2015
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H119.IH
H119
emcdonald on DSK67QTVN1PROD with BILLS
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 2017, 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. 
VerDate Sep 11 2014 
04:29 Jan 09, 2015
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H119.IH
H119
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(c) EXEMPTION
FOR
DIRECT
SPENDING
PRO-
GRAMS.—Subsections (b) and (e) shall not apply to— 
‘‘(1) any direct loan or loan guarantee program 
that constitutes an entitlement (such as the guaran-
teed student loan program or the veteran’s home 
loan guaranty program); 
‘‘(2) the credit programs of the Commodity 
Credit Corporation existing on the date of enactment 
of this title; or 
‘‘(3) any direct loan (or direct loan obligation) 
or loan guarantee (or loan guarantee commitment) 
made by the Federal National Mortgage Association 
or the Federal Home Loan Mortgage Corporation. 
‘‘(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. 
VerDate Sep 11 2014 
04:29 Jan 09, 2015
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H119.IH
H119
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(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 
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. 
VerDate Sep 11 2014 
04:29 Jan 09, 2015
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H119.IH
H119
emcdonald on DSK67QTVN1PROD with BILLS