Title: GRATER Act of 2018
Policy area: Economics and Public Finance

Summary:
Government Risk and Taxpayer Exposure Reduction Act of 2018 or the GRATER Act of 2018
This bill requires federal departments and agencies that administer credit, guarantee, or insurance programs to develop and implement a strategy and plan to transfer, to the maximum extent possible, the credit, guarantee, and insurance risk of the programs to the private sector. The strategy and plan must also address the utilization and development of private risk capacity in program and award development and administration.
Federal departments and agencies that administer and award grants or aid must, in setting the terms for a new award, seek to utilize or encourage the development of, to the maximum extent possible, insurance risk capacity in the private sector in the United States and in foreign economies that receive or host grants or aid.
The risk that is transferred to the private sector under this bill must be transferred at market terms, through a variety of financial instruments, and in a sustained and transparent manner.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5381 Introduced in House (IH)]

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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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Risk and Taxpayer 
Exposure Reduction Act of 2018'' or the ``GRATER Act of 2018''.

SEC. 2. POLICY.

    (a) Minimization of Government Risk.--It is the policy of the 
United States to reduce and minimize the credit, guarantee, and 
insurance risk of Federal Government programs in all departments and 
agencies on an ongoing basis to the maximum extent possible by 
transferring all such risk to the private sector at market terms 
through a variety of financial instruments in a sustained and 
transparent manner.
    (b) Use of Private Risk Capacity.--In the development and 
administration of Federal Government programs and awards in all 
departments and agencies, it is the policy of the United States to 
utilize to the maximum extent possible, the use of private risk 
capacity, consistent with the goals and purposes of such programs and 
awards.

SEC. 3. STRATEGY AND IMPLEMENTATION.

    (a) Plan.--Notwithstanding any other provision of law, each 
department and agency of the Federal Government responsible for the 
administration of any credit, guarantee, or insurance program shall, 
for each fiscal year, develop and implement a strategy and 
implementation plan for such program to transfer, to the maximum extent 
possible, all such credit, guarantee, and insurance risk to the private 
sector at market terms through a variety of financial instruments in a 
sustained and transparent manner. The initial strategy and 
implementation plan, after a 60-day period of public comment, shall be 
published in the Federal Register not later than the expiration of the 
6-month period beginning on the date of the enactment of this Act.
    (b) Use of Private Insurance Risk Capacity.--Any department or 
agency of the Federal Government that is responsible for the 
administration and award of any grants or aid shall, in setting the 
terms of each new award, seek to utilize or encourage the development 
of, to the maximum extent possible, insurance risk capacity in the 
private sector both in the United States and in any non-United States 
economy that is the recipient or host to such grant or aid, at market 
terms through a variety of financial instruments in a sustained and 
transparent manner. The strategy and implementation plans required in 
subsection (a) shall address the utilization and development of private 
risk capacity in program and award development and administration.

SEC. 4. REPORTING.

    Each department and agency referred to in section 3 shall submit 
the strategy and implementation plan developed for each fiscal year 
pursuant to such section to the Director of the Office of Management 
and Budget. For each fiscal year, the Director shall compile a list of 
all credit, guarantee, and insurance risk transfer programs of 
departments and agencies of the Federal Government and submit such list 
to the President and the Congress together with a summary of the 
success to date of each such program, the current and aggregate totals 
of credit risk transferred since the date of the enactment of this Act, 
and any recommendations to enhance or expand such programs.
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