H.R. 1388 — Fair-Value Accounting and Budget Act

This section establishes the short title as the “Fair-Value Accounting and Budget Act.”

This section establishes a new section 407 of the Congressional Budget and Impoundment Control Act of 1974 requiring the Congressional Budget Office (CBO) to provide fair-value estimates for any measure that establishes or modifies a program providing loans or loan guarantees. It also directs CBO to include, as practicable, fair-value and credit reform estimates of loan and loan guarantee programs in its annual “The Budget and Economic Outlook” publication or any successor report. This section further requires the chair of the House or Senate Budget Committee to use a CBO fair-value estimate, when provided, to determine compliance with the Congressional Budget Act and other budget enforcement requirements. It also requires the Director of the Office of Management and Budget, beginning in 2026 and each year thereafter, to submit a report within 90 days after the President submits the annual budget under 31 U.S.C. § 1105(a) on fair-value estimates of the cost of Federal credit programs. This section defines “fair-value” by reference to the February 2015 Government Accounting Standards Board publication, “Fair Value Measurement and Application,” and makes a clerical amendment to the Act’s table of contents to add section 407.