#aacth ,,congress #b;d ,session ,h4 ,r4 #ahgb ,,an ,,act ,to amend the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe to increase transparency in ,federal budgeting1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,budget and ,accounting ,transparency ,act of #bjad4 ,i ,fair value estimates #aja4 ,credit reform 7a7 ,in general ,title ,v of the ,congressional ,budget ,act of #aigd is amended to read as follows3 ,v ,fair value #ejj4 ,short title ,this title may be cited as the ,fair ,value ,accounting ,act of #bjad4 #eja4 ,purposes ,the purposes of this title are to-- 7#a7 measure more accurately the costs of ,federal credit programs by accounting for them on a fair value basis2 7#b7 place the cost of credit programs on a budgetary basis equivalent to other ,federal spending2 7#c7 encourage the delivery of benefits in the form most appropriate to the needs of beneficiaries2 and 7#d7 improve the allocation of resources among ,federal programs4 #ejb4 ,definitions ,for purposes of this title3 7#a7 ,the term direct loan means a disbursement of funds by the ,government to a non-,federal borrower under a contract that requires the repayment of such funds with or without interest4 ,the term includes the purchase of1 or participation in1 a loan made by another lender and financing arrangements that defer payment for more than #ij days1 including the sale of a ,government asset on credit terms4 ,the term does not include the acquisition of a federally guaranteed loan in satisfaction of default claims or the price support loans of the ,commodity ,credit ,corporation4 7#b7 ,the term direct loan obligation means a binding agreement by a ,federal agency to make a direct loan when specified conditions are fulfilled by the borrower4 7#c7 ,the term loan guarantee means any guarantee1 insurance1 or other pledge with respect to the payment of all or a part of the principal or interest on any debt obligation of a non-,federal borrower to a non-,federal lender1 but does not include the insurance of deposits1 shares1 or other withdrawable accounts in financial institutions4 7#d7 ,the term loan guarantee commitment means a binding agreement by a ,federal agency to make a loan guarantee when specified conditions are fulfilled by the borrower1 the lender1 or any other party to the guarantee agreement4 7#e7 7,a7 ,the term cost means the sum of the ,treasury discounting component and the risk component of a direct loan or loan guarantee1 or a modification thereof4 7,b7 ,the ,treasury discounting component shall be the estimated long-term cost to the ,government of a direct loan or loan guarantee1 or modification thereof1 calculated on a net present value basis1 excluding administrative costs and any incidental effects on governmental receipts or outlays4 7,c7 ,the risk component shall be an amount equal to the difference between-- 7i7 the estimated long-term cost to the ,government of a direct loan or loan guarantee1 or modification thereof1 estimated on a fair value basis1 applying the guidelines set forth by the ,financial ,accounting ,standards ,board in ,financial ,accounting ,standards #aeg1 or a successor thereto1 excluding administrative costs and any incidental effects on governmental receipts or outlays2 and 7ii7 the ,treasury discounting component of such direct loan or loan guarantee1 or modification thereof4 7,d7 ,the ,treasury discounting component of a direct loan shall be the net present value1 at the time when the direct loan is disbursed1 of the following estimated cash flows3 7i7 ,loan disbursements4 7ii7 ,repayments of principal4 7iii7 ,essential preservation expenses1 payments of interest and other payments by or to the ,government over the life of the loan after adjusting for estimated defaults1 prepayments1 fees1 penalties1 and other recoveries1 including the effects of changes in loan terms resulting from the exercise by the borrower of an option included in the loan contract4 7,e7 ,the ,treasury discounting component of a loan guarantee shall be the net present value1 at the time when the guaranteed loan is disbursed1 of the following estimated cash flows3 7i7 ,payments by the ,government to cover defaults and delinquencies1 interest subsidies1 essential preservation expenses1 or other payments4 7ii7 ,payments to the ,government including origination and other fees1 penalties1 and recoveries1 including the effects of changes in loan terms resulting from the exercise by the guaranteed lender of an option included in the loan guarantee contract1 or by the borrower of an option included in the guaranteed loan contract4 7,f7 ,the cost of a modification is the sum of-- 7i7 the difference between the current estimate of the ,treasury discounting component of the remaining cash flows under the terms of a direct loan or loan guarantee and the current estimate of the ,treasury discounting component of the remaining cash flows under the terms of the contract1 as modified2 and 7ii7 the difference between the current estimate of the risk component of the remaining cash flows under the terms of a direct loan or loan guarantee and the current estimate of the risk component of the remaining cash flows under the terms of the contract as modified4 7,g7 ,in estimating ,treasury discounting components1 the discount rate shall be the average interest rate on marketable ,treasury securities of similar duration to the cash flows of the direct loan or loan guarantee for which the estimate is being made4 7,h7 ,when funds are obligated for a direct loan or loan guarantee1 the estimated cost shall be based on the current assumptions1 adjusted to incorporate the terms of the loan contract1 for the fiscal year in which the funds are obligated4 7#f7 ,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 account4 7#g7 ,the term financing account means the nonbudget account or accounts associated with each program account which holds balances1 receives the cost payment from the program account1 and also includes all other cash flows to and from the ,government resulting from direct loan obligations or loan guarantee commitments made on or after ,october #a1 #aiia4 7#h7 ,the term liquidating account means the budget account that includes all cash flows to and from the ,government resulting from direct loan obligations or loan guarantee commitments made prior to ,october #a1 #aiia4 ,these accounts shall be shown in the budget on a cash basis4 7#i7 ,the term modification means any ,government action that alters the estimated cost of an outstanding direct loan 7or direct loan obligation7 or an outstanding loan guarantee 7or loan guarantee commitment7 from the current estimate of cash flows4 ,this includes the sale of loan assets1 with or without recourse1 and the purchase of guaranteed loans 7or direct loan obligations7 or loan guarantees 7or loan guarantee commitments7 such as a change in collection procedures4 7#aj7 ,the term current has the same meaning as in section #bej7;c77#i7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe4 7#aa7 ,the term ,director means the ,director of the ,office of ,management and ,budget4 7#ab7 ,the term administrative costs means costs related to program management activities1 but does not include essential preservation expenses4 7#ac7 ,the term essential preservation expenses means servicing and other costs that are essential to preserve the value of loan assets or collateral4 #ejc4 ,,omb and ,,cbo analysis1 coordination1 and review 7a7 ,in general ,for the executive branch1 the ,director shall be responsible for coordinating the estimates required by this title4 ,the ,director shall consult with the agencies that administer direct loan or loan guarantee programs4 7b7 ,delegation ,the ,director may delegate to agencies authority to make estimates of costs4 ,the delegation of authority shall be based upon written guidelines1 regulations1 or criteria consistent with the definitions in this title4 7c7 ,coordination with the ,congressional ,budget ,office ,in developing estimation guidelines1 regulations1 or criteria to be used by ,federal agencies1 the ,director shall consult with the ,director of the ,congressional ,budget ,office4 7d7 ,improving cost estimates ,the ,director and the ,director of the ,congressional ,budget ,office shall coordinate the development of more accurate data on historical performance and prospective risk of direct loan and loan guarantee programs4 ,they shall annually review the performance of outstanding direct loans and loan guarantees to improve estimates of costs4 ,the ,office of ,management and ,budget and the ,congressional ,budget ,office shall have access to all agency data that may facilitate the development and improvement of estimates of costs4 7e7 ,historical credit programs costs ,the ,director shall review1 to the extent possible1 historical data and develop the best possible estimates of adjustments that would convert aggregate historical budget data to credit reform accounting4 #ejd4 ,budgetary treatment 7a7 ,president's budget ,beginning with fiscal year #bjag1 the ,president's budget shall reflect the costs of direct loan and loan guarantee programs4 ,the budget shall also include the planned level of new direct loan obligations or loan guarantee commitments associated with each appropriations request4 ,for each fiscal year within the five-fiscal year period beginning with fiscal year #bjag1 such budget shall include1 on an agency-by-agency basis1 subsidy estimates and costs of direct loan and loan guarantee programs with and without the risk component4 7b7 ,appropriations required ,notwithstanding any other provision of law1 new direct loan obligations may be incurred and new loan guarantee commitments may be made for fiscal year #bjag and thereafter only to the extent that-- 7#a7 new budget authority to cover their costs is provided in advance in an appropriation ,act2 7#b7 a limitation on the use of funds otherwise available for the cost of a direct loan or loan guarantee program has been provided in advance in an appropriation ,act2 or 7#c7 authority is otherwise provided in appropriation ,acts4 7c7 ,exemption for direct spending programs ,subsections 7b7 and 7e7 shall not apply to-- 7#a7 any direct loan or loan guarantee program that constitutes an entitlement 7such as the guaranteed student loan program or the veteran's home loan guaranty program72 7#b7 the credit programs of the ,commodity ,credit ,corporation existing on the date of enactment of this title2 or 7#c7 any direct loan 7or direct loan obligation7 or loan guarantee 7or loan guarantee commitment7 made by the ,federal ,national ,mortgage ,association or the ,federal ,home ,loan ,mortgage ,corporation4 7d7 ,budget accounting 7#a7 ,the authority to incur new direct loan obligations1 make new loan guarantee commitments1 or modify outstanding direct loans 7or direct loan obligations7 or loan guarantees 7or loan guarantee commitments7 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 used4 ,such budget authority shall constitute an obligation of the program account to pay to the financing account4 7#b7 ,the outlays resulting from new budget authority for the cost of direct loans or loan guarantees described in paragraph 7#a7 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 altered4 7#c7 ,all collections and payments of the financing accounts shall be a means of financing4 7e7 ,modifications ,an outstanding direct loan 7or direct loan obligation7 or loan guarantee 7or loan guarantee commitment7 shall not be modified in a manner that increases its costs unless budget authority for the additional cost has been provided in advance in an appropriation ,act4 7f7 ,reestimates ,when the estimated cost for a group of direct loans or loan guarantees for a given program made in a single fiscal year is re-estimated in a subsequent year1 the difference between the reestimated cost and the previous cost estimate shall be displayed as a distinct and separately identified subaccount in the program account as a change in program costs and a change in net interest4 ,there is hereby provided permanent indefinite authority for these re-estimates4 7g7 ,administrative expenses ,all funding for an agency's administrative costs associated with a direct loan or loan guarantee program shall be displayed as distinct and separately identified subaccounts within the same budget account as the program's cost4 #eje4 ,authorizations 7a7 ,authorization for financing accounts ,in order to implement the accounting required by this title1 the ,president is authorized to establish such non-budgetary accounts as may be appropriate4 7b7 ,treasury transactions with the financing accounts 7#a7 ,in general ,the ,secretary of the ,treasury shall borrow from1 receive from1 lend to1 or pay to the financing accounts such amounts as may be appropriate4 ,the ,secretary of the ,treasury may prescribe forms and denominations1 maturities1 and terms and conditions for the transactions described in the preceding sentence1 except that the rate of interest charged by the ,secretary on lending to financing accounts 7including amounts treated as lending to financing accounts by the ,federal ,financing ,bank 7hereinafter in this subsection referred to as the ,bank7 pursuant to section #dje7;b77 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 #ejb7e77;,g74 7#b7 ,loans ,for guaranteed loans financed by the ,bank and treated as direct loans by a ,federal agency pursuant to section #djf7;b77#a71 any fee or interest surcharge 7the amount by which the interest rate charged exceeds the rate determined pursuant to section #ejb7e77;,g7 that the ,bank charges to a private borrower pursuant to section #f7;c7 of the ,federal ,financing ,bank ,act of #aigc shall be considered a cash flow to the ,government for the purposes of determining the cost of the direct loan pursuant to section #ejb7e74 ,all such amounts shall be credited to the appropriate financing account4 7#c7 ,reimbursement ,the ,bank is authorized to require reimbursement from a ,federal agency to cover the administrative expenses of the ,bank that are attributable to the direct loans financed for that agency4 ,all such payments by an agency shall be considered administrative expenses subject to section #ejd7;g74 ,this subsection shall apply to transactions related to direct loan obligations or loan guarantee commitments made on or after ,october #a1 #aiia4 7#d7 ,authority ,the authorities provided in this subsection shall not be construed to supersede or override the authority of the head of a ,federal agency to administer and operate a direct loan or loan guarantee program4 7#e7 ,title #ca ,all of the transactions provided in the subsection shall be subject to the provisions of subchapter ,,ii of chapter #ae of title #ca1 ,united ,states ,code4 7#f7 ,treatment of cash balances ,cash balances of the financing accounts in excess of current requirements shall be maintained in a form of uninvested funds and the ,secretary of the ,treasury shall pay interest on these funds4 ,the ,secretary of the ,treasury shall charge 7or pay if the amount is negative7 financing accounts an amount equal to the risk component for a direct loan or loan guarantee1 or modification thereof4 ,such amount received by the ,secretary of the ,treasury shall be a means of financing and shall not be considered a cash flow of the ,government for the purposes of section #ejb7e74 7c7 ,authorization for liquidating accounts 7#a7 ,amounts in liquidating accounts shall be available only for payments resulting from direct loan obligations or loan guarantee commitments made prior to ,october #a1 #aiia1 for-- 7,a7 interest payments and principal repayments to the ,treasury or the ,federal ,financing ,bank for amounts borrowed2 7,b7 disbursements of loans2 7,c7 default and other guarantee claim payments2 7,d7 interest supplement payments2 7,e7 payments for the costs of foreclosing1 managing1 and selling collateral that are capitalized or routinely deducted from the proceeds of sales2 7,f7 payments to financing accounts when required for modifications2 7,g7 administrative costs and essential preservation expenses1 if-- 7i7 amounts credited to the liquidating account would have been available for administrative costs and essential preservation expenses under a provision of law in effect prior to ,october #a1 #aiia2 and 7ii7 no direct loan obligation or loan guarantee commitment has been made1 or any modification of a direct loan or loan guarantee has been made1 since ,september #cj1 #aiia2 or 7,h7 such other payments as are necessary for the liquidation of such direct loan obligations and loan guarantee commitments4 7#b7 ,amounts credited to liquidating accounts in any year shall be available only for payments required in that year4 ,any unobligated balances in liquidating accounts at the end of a fiscal year shall be transferred to miscellaneous receipts as soon as practicable after the end of the fiscal year4 7#c7 ,if funds in liquidating accounts are insufficient to satisfy obligations and commitments of such accounts1 there is hereby provided permanent1 indefinite authority to make any payments required to be made on such obligations and commitments4 7d7 ,reinsurance ,nothing in this title shall be construed as authorizing or requiring the purchase of insurance or reinsurance on a direct loan or loan guarantee from private insurers4 ,if any such reinsurance for a direct loan or loan guarantee is authorized1 the cost of such insurance and any recoveries to the ,government shall be included in the calculation of the cost4 7e7 ,eligibility and assistance ,nothing in this title shall be construed to change the authority or the responsibility of a ,federal agency to determine the terms and conditions of eligibility for1 or the amount of assistance provided by a direct loan or a loan guarantee4 #ejf4 ,treatment of deposit insurance and agencies and other insurance programs ,this title shall not apply to the credit or insurance activities of the ,federal ,deposit ,insurance ,corporation1 ,national ,credit ,union ,administration1 ,resolution ,trust ,corporation1 ,pension ,benefit ,guaranty ,corporation1 ,national ,flood ,insurance1 ,national ,insurance ,development ,fund1 ,crop ,insurance1 or ,tennessee ,valley ,authority4 #ejg4 ,effect on other laws 7a7 ,effect on other laws ,this title shall supersede1 modify1 or repeal any provision of law enacted prior to the date of enactment of this title to the extent such provision is inconsistent with this title4 ,nothing in this title shall be construed to establish a credit limitation on any ,federal loan or loan guarantee program4 7b7 ,crediting of collections ,collections resulting from direct loans obligated or loan guarantees committed prior to ,october #a1 #aiia1 shall be credited to the liquidating accounts of ,federal agencies4 ,amounts so credited shall be available1 to the same extent that they were available prior to the date of enactment of this title1 to liquidate obligations arising from such direct loans obligated or loan guarantees committed prior to ,october #a1 #aiia1 including repayment of any obligations held by the ,secretary of the ,treasury or the ,federal ,financing ,bank4 ,the unobligated balances of such accounts that are in excess of current needs shall be transferred to the general fund of the ,treasury4 ,such transfers shall be made from time to time but1 at least once each year4 4 7b7 ,conforming amendment ,the table of contents set forth in section #a7;b7 of the ,congressional ,budget and ,impoundment ,control ,act of #aigd is amended by striking the items relating to title ,v and inserting the following3 ,title ,v--,fair value ,sec4 #ejj4 ,short title4 ,sec4 #eja4 ,purposes4 ,sec4 #ejb4 ,definitions4 ,sec4 #ejc4 ,,omb and ,,cbo analysis1 coordination1 and review4 ,sec4 #ejd4 ,budgetary treatment4 ,sec4 #eje4 ,authorizations4 ,sec4 #ejf4 ,treatment of deposit insurance and agencies and other insurance programs4 ,sec4 #ejg4 ,effect on other laws4 4 #ajb4 ,budgetary adjustment 7a7 ,in general ,section #bea7;b77#a7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe is amended by adding at the end the following new sentence3 ,a change in discretionary spending solely as a result of the amendment to title ,v of the ,congressional ,budget ,act of #aigd made by the ,budget and ,accounting ,transparency ,act of #bjad shall be treated as a change of concept under this paragraph44 7b7 ,report ,before adjusting the discretionary caps pursuant to the authority provided in subsection 7a71 the ,office of ,management and ,budget shall report to the ,committees on the ,budget of the ,house of ,representatives and the ,senate on the amount of that adjustment1 the methodology used in determining the size of that adjustment1 and a program-by-program itemization of the components of that adjustment4 7c7 ,schedule ,the ,office of ,management and ,budget shall not make an adjustment pursuant to the authority provided in subsection 7a7 sooner than #fj days after providing the report required in subsection 7b74 #ajc4 ,effective date ,the amendments made by section #aja shall take effect beginning with fiscal year #bjag4 ,,ii ,budgetary treatment #bja4 ,,cbo and ,,omb studies respecting budgeting for costs of ,federal insurance programs ,not later than #a year after the date of enactment of this ,act1 the ,directors of the ,congressional ,budget ,office and of the ,office of ,management and ,budget shall each prepare a study and make recommendations to the ,committees on the ,budget of the ,house of ,representatives and the ,senate as to the feasability of applying fair value concepts to budgeting for the costs of ,federal insurance programs4 #bjb4 ,on-budget status of ,fannie ,mae and ,freddie ,mac ,notwithstanding any other provision of law1 the receipts and disbursements1 including the administrative expenses1 of the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation shall be counted as new budget authority1 outlays1 receipts1 or deficit or surplus for purposes of-- 7#a7 the budget of the ,united ,states ,government as submitted by the ,president2 7#b7 the congressional budget2 and 7#c7 the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe4 #bjc4 ,effective date ,section #bjb shall not apply with respect to an enterprise 7as such term is defined in section #acjc of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dejb77 after the date that all of the following have occurred3 7#a7 ,the conservatorship for such enterprise under section #acfg of such ,act 7#ab ,u4,s4,c4 #dfag7 has been terminated4 7#b7 ,the ,director of the ,federal ,housing ,finance ,agency has certified in writing that such enterprise has repaid to the ,federal ,government the maximum amount consistent with minimizing total cost to the ,federal ,government of the financial assistance provided to the enterprise by the ,federal ,government pursuant to the amendments made by section #aaag of the ,housing and ,economic ,recovery ,act of #bjjh 7,public ,law #aaj-bhi2 #abb ,stat4 #bfhc7 or otherwise4 7#c7 ,the charter for the enterprise has been revoked1 annulled1 or terminated and the authorizing statute 7as such term is defined in such section #acjc7 with respect to the enterprise has been repealed4 ,,iii ,budget review and analysis #cja4 ,,cbo and ,,omb review and recommendations respecting receipts and collections ,not later than #a year after the date of enactment of this ,act1 the ,director of the ,office of ,management and ,budget shall prepare a study of the history of offsetting collections against expenditures and the amount of receipts collected annually1 the historical application of the budgetary terms revenue1 offsetting collections1 and offsetting receipts1 and review the application of those terms and make recommendations to the ,committees on the ,budget of the ,house of ,representatives and the ,senate of whether such usage should be continued or modified4 ,the ,director of the ,congressional ,budget ,office shall review the history and recommendations prepared by the ,director of the ,office of ,management and ,budget and shall submit comments and recommendations to such ,committees4 #cjb4 ,agency budget justifications ,section #aajh of title #ca1 ,united ,states ,code1 is amended by inserting at the end the following new subsections3 7h7 7#a7 ,whenever any agency prepares and submits written budget justification materials for any committee of the ,house of ,representatives or the ,senate1 such agency shall post such budget justification on the same day of such submission on the open page of the public website of the agency1 and the ,office of ,management and ,budget shall post such budget justification in a centralized location on its website1 in the format developed under paragraph 7#b74 ,each agency shall include with its written budget justification the process and methodology the agency is using to comply with the ,fair ,value ,accounting ,act of #bjad4 7#b7 ,the ,office of ,management and ,budget1 in consultation with the ,congressional ,budget ,office and the ,government ,accountability ,office1 shall develop and notify each agency of the format in which to post a budget justification under paragraph 7#a74 ,such format shall be designed to ensure that posted budget justifications for all agencies-- 7,a7 are searchable1 sortable1 and downloadable by the public2 7,b7 are consistent with generally accepted standards and practices for machine-discoverability2 7,c7 are organized uniformly1 in a logical manner that makes clear the contents of a budget justification and relationships between data elements within the budget justification and among similar documents2 and 7,d7 use uniform identifiers1 including for agencies1 bureaus1 programs1 and projects4 7i7 7#a7 ,not later than the day that the ,office of ,management and ,budget issues guidelines1 regulations1 or criteria to agencies on how to calculate the risk component under the ,fair ,value ,accounting ,act of #bjad1 it shall submit a written report to the ,committees on the ,budget of the ,house of ,representatives and the ,senate containing all such guidelines1 regulations1 or criteria4 7#b7 ,for fiscal year #bjag and each of the next four fiscal years thereafter1 the ,comptroller ,general shall submit an annual report to the ,committees on the ,budget of the ,house of ,representatives and the ,senate reviewing and evaluating the progress of agencies in the implementation of the ,fair ,value ,accounting ,act of #bjad4 7#c7 ,such guidelines1 regulations1 or criteria shall be deemed to be a rule for purposes of section #eec of title #e and shall be issued after notice and opportunity for public comment in accordance with the procedures under such section4 4 ,passed the ,house of ,representatives ,april #g1 #bjad4;,clerk4