Cost Estimate Clarity Act
- Bill Number
- H.R. 8570
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Status
- Introduced
- Latest Action
- 2026-04-29: Referred to the Committee on Rules, and in addition to the Committee on the Budget, 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.
- Last Updated
- 2026-05-07T09:23:42Z
AI-Generated Summary
Purpose
The Cost Estimate Clarity Act (H.R. 8570) aims to increase transparency in Congressional Budget Office (CBO) cost estimates by requiring the CBO to explicitly show how "baseline assumptions" affect those estimates. Baseline assumptions are projections of future federal spending and revenues based on current laws continuing unchanged (e.g., assuming temporary programs expire unless extended).
Key Provisions
- Amends Section 402 of the Congressional Budget Act of 1974 (2 U.S.C. 653).
- Requires the CBO, when preparing cost estimates for legislation:
- To provide a quantitative estimate of the difference between the official estimate (using baseline assumptions) and the projected cost without those assumptions.
- To identify which specific baseline assumption creates the difference.
- To explain any programs, benefits, or payment rates where the baseline assumption results in the estimate showing lower or no budgetary cost compared to actual expected federal spending—especially cases where the baseline assumes expiration but continuation is likely.
Significant Changes to Existing Law
- Adds a new subsection (b) to Section 402, mandating these disclosures "to the greatest extent practicable."
- Previously, CBO estimates used baseline assumptions without routinely quantifying or explaining their impact, potentially masking true costs of extending programs.
Potential Impacts
- Government agencies: CBO must revise its estimation processes, increasing workload but improving accuracy and detail in reports.
- Citizens: Indirectly benefits through more transparent budgeting, helping lawmakers make informed decisions on spending that affect taxes, benefits, and deficits.
- No direct international relations impact.
Main Stakeholders Affected
- Congressional Budget Office (CBO): Primary entity responsible for implementing changes.
- Congress (especially Budget and Rules Committees): Gains clearer data for evaluating bills.
- Lawmakers and legislative staff: Better tools for debating fiscal impacts.
- Federal program administrators: Affected if estimates influence funding for expiring programs (e.g., benefits or payments).
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances compliance with existing budget laws by standardizing disclosures; no new enforcement mechanisms.
- Constitutional: Aligns with Congress's power of the purse (Article I, Section 9) by improving fiscal oversight tools.
- Political: Could alter debates on bill costs—e.g., making extensions of popular programs appear less expensive without baselines, potentially influencing passage of spending measures. Promotes neutrality in CBO scoring but may spark partisan disputes over "actual expected" costs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-29: Referred to the Committee on Rules, and in addition to the Committee on the Budget, 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.
- 2026-04-29: Referred to the Committee on Rules, and in addition to the Committee on the Budget, 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.
- 2026-04-29: Introduced in House
- 2026-04-29: Introduced in House
Bill Versions
- Cost Estimate Clarity Act — issued 2026-04-29 — PDF (3 pages)