I 
118TH CONGRESS 
2D SESSION 
H. R. 9040 
To require covered agencies to issue strategy and implementation plans for 
the transfer of credit, guarantee, and insurance risk to the private 
sector, to require the implementation of such plans, and for other pur-
poses. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 15, 2024 
Mr. DONALDS (for himself and Mr. KRISHNAMOORTHI) introduced the fol-
lowing bill; which was referred to the Committee on Oversight and Ac-
countability 
A BILL 
To require covered agencies to issue strategy and implemen-
tation plans for the transfer of credit, guarantee, and 
insurance risk to the private sector, to require the imple-
mentation of such plans, 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. TRANSFER OF GOVERNMENT CREDIT, GUAR-
ANTEE, AND INSURANCE RISK TO THE PRI-
VATE SECTOR. 
(a) GOVERNMENT
RISK
MANAGEMENT
POLICY 
STATEMENT.— 
VerDate Sep 11 2014 
22:10 Aug 16, 2024
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H9040.IH
H9040
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(1) MINIMIZATION OF GOVERNMENT RISK.—It 
is the policy of the United States to assess, reduce 
and minimize the credit, guarantee, and insurance 
risk of Federal Government programs in each agen-
cy on an ongoing basis to the maximum extent prac-
tical by transferring all such risk to the private sec-
tor at market terms through a variety of financial 
instruments in a sustained and transparent manner. 
(2) USE OF PRIVATE RISK CAPACITY.—In the 
development and administration of Federal Govern-
ment programs and awards in each agency, it is the 
policy of the United States to reduce costs to tax-
payers and to protect taxpayers against catastrophic 
losses through prudent and established risk manage-
ment techniques, including the frequent assessment 
of Federal credit, guarantee and insurance risks, 
and where appropriate, the transfer of risk to pri-
vate markets to the maximum extent practical. 
(b) STRATEGY AND IMPLEMENTATION PLAN.— 
(1) IN GENERAL.—Not later than 12 months 
after the date of the enactment of this Act, and not 
less frequently than once every 5 years thereafter, 
the head of each covered agency shall submit to the 
Director of the Office of Management and Budget, 
VerDate Sep 11 2014 
22:10 Aug 16, 2024
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H9040.IH
H9040
kjohnson on DSK7ZCZBW3PROD with $$_JOB
and publish in the Federal Register, a strategy and 
implementation plan that includes the following: 
(A) An identification of any barrier (in-
cluding any policy, law, or regulation)— 
(i) to transferring credit, guarantee, 
and insurance risk of the covered agency to 
the private sector; and 
(ii) that would prohibit the covered 
agency from paying any costs associated 
with such transfer. 
(B) An implementation plan for addressing 
any such barrier or, in the case of a Federal 
statute that is a barrier, a legislative rec-
ommendation to Congress for removing the bar-
rier. 
(C) An identification of each office or divi-
sion within the covered agency principally re-
sponsible for programs under which the covered 
agency has credit, guarantee, or insurance risk. 
(D) An analysis of the use and develop-
ment of private sector capabilities to develop-
ment and administer programs under which the 
covered agency has credit, guarantee, or insur-
ance risk. 
VerDate Sep 11 2014 
22:10 Aug 16, 2024
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H9040.IH
H9040
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(E) The estimated cost or savings of trans-
ferring credit, guarantee, and insurance risk of 
the covered agency to the private sector, includ-
ing the expected annual cost or savings— 
(i) during a normal year; 
(ii) during a year where the losses due 
to defaults on such credit, guarantee, or 
insurance are lower than normal; and 
(iii) during a year where the losses 
due to defaults on such credit, guarantee, 
or insurance are higher than normal. 
(2) PUBLIC COMMENT.—The head of each cov-
ered agency shall provide a 60-day period for public 
comment on any strategy and implementation plan 
described in paragraph (1) before the date on which 
the report is published in the Federal Register. 
(c) IMPLEMENTATION.— 
(1) IN GENERAL.—The head of each covered 
agency may implement a strategy and implementa-
tion plan submitted under subsection (b) to transfer 
credit, guarantee, and insurance risk of the covered 
agency to the private sector. 
(2) REQUIREMENTS.—In any transfer described 
under paragraph (1), the head of a covered agency 
shall make such transfer— 
VerDate Sep 11 2014 
22:10 Aug 16, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H9040.IH
H9040
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(A) under market terms; and 
(B) in a transparent manner. 
(3) PROHIBITION ON TRANSFERS THAT WOULD 
INCREASE CERTAIN COSTS.—The head of a covered 
agency may not make a transfer described under 
paragraph (1) if such transfer would directly result 
in an increased fee, premium, or other cost to an in-
dividual. 
(d) REPORTS.— 
(1) REPORTS BY PRIVATE SECTOR ENTITIES TO 
COVERED AGENCIES.— 
(A) IN GENERAL.—The head of each cov-
ered agency shall require any private sector en-
tity to which the covered agency transfers cred-
it, guarantee, or insurance risk under sub-
section (c) to submit to the covered agency a 
regular report that includes a description of any 
claim received by the private sector entity with 
respect to the transferred credit, guarantee, or 
insurance risk, including any amount paid for 
any such claim. 
(B) AVAILABILITY OF REPORT.—Each re-
port described under subparagraph (A) shall be 
made available, upon request, to the Director of 
VerDate Sep 11 2014 
22:10 Aug 16, 2024
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H9040.IH
H9040
kjohnson on DSK7ZCZBW3PROD with $$_JOB
the Office of Management and Budget and 
Congress. 
(2) OMB REPORT.—Not later than 18 months 
after the date of the enactment of this Act, and not 
less frequently than once every 5 years thereafter, 
the Director of the Office of Management and Budg-
et shall submit to the President and the Congress a 
report containing the following: 
(A) A list of credit, guarantee, and insur-
ance obligations under the management or con-
trol of each covered agency. 
(B) A list of each credit, guarantee, and 
insurance risk transfer program for each cov-
ered agency, with a summary of— 
(i) the estimated savings to the Fed-
eral Government related to loss claims as-
sociated with the transferred credit, guar-
antee, or insurance risk; and 
(ii) the cost paid by the covered agen-
cy to make such transfer. 
(C) The current and aggregate totals of 
credit, guarantee, and insurance risk trans-
ferred to the private sector on and after the 
date of the enactment of this Act. 
VerDate Sep 11 2014 
22:10 Aug 16, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H9040.IH
H9040
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(D) Any recommendations to enhance or 
expand the programs described in subparagraph 
(B). 
(e) COVERED AGENCY DEFINED.—In this section, 
the term ‘‘covered agency’’— 
(1) means an agency (as defined under section 
3502 of title 44, United States Code) that is respon-
sible for the administration of any credit, guarantee, 
or insurance program; 
(2) means the Federal National Mortgage Asso-
ciation and the Federal Home Loan Mortgage Cor-
poration during any period in which such enterprise 
is under conservatorship or receivership pursuant to 
section 1367 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (12 
U.S.C. 4617); and 
(3) does not include— 
(A) the Social Security Administration; or 
(B) the Centers for Medicare & Medicaid 
Services. 
Æ 
VerDate Sep 11 2014 
22:10 Aug 16, 2024
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\H9040.IH
H9040
kjohnson on DSK7ZCZBW3PROD with $$_JOB