The House Budget Committee is set to markup six important bills aimed at improving the efficiency and transparency of the Congressional Budget Office (CBO). These reforms include measures to improve CBO’s baseline projection, which is integral to supporting Congress’s efforts on the budget. By ensuring more accurate fiscal forecasts, timely reports, and consistent oversight of CBO by Congress, these bills will promote fiscal responsibility and accountability.
H.R. 8068, Stop the Baseline Bloat Act (Reps. Glenn Grothman (R-WI) and Ed Case (D-HI))
Under current scoring conventions, emergency and supplemental spending are included in CBO’s baseline projections. However, these temporary, one-time expenditures inflate the baseline, allowing for higher spending levels in future years. The Stop the Baseline Bloat Act would require CBO to exclude this spending from its future baseline projections. Under this proposal, CBO would be able to provide a more accurate budgetary projection.
H.R. 9686, Healthy Equipping And Lending Technical Help (HEALTH) Panel Act (Reps. Buddy Carter (R-GA) and Michael Burgess (R-TX))
This legislation would formalize CBO’s Panel of Health Advisors that provides expert feedback and recommendations to CBO. The 15-member Panel would be appointed as follows:
Three members by the Chair of the House Budget Committee
Three members by the Ranking Minority Member of the House Budget Committee
Three members by the Chair of the Senate Budget Committee
Three members by the Ranking Minority Member of the Senate Budget Committee
Three members by the Director of the CBO
The Panel would meet annually to review CBO’s health care policy analysis, cost estimates, and scoring models. It would also be required to issue reports to Congress on its findings. CBO would then report on how these recommendations were incorporated into its work. The Panel will help enhance transparency and accuracy of CBO’s projections, and contribute to informed decision-making in Congress.
H.R. 9711, Congressional Budget Office Scheduling Reform Act (Rep. David Valadao (R-CA))
This bill would require the CBO to publish the expected publication date of major recurring reports, including:
The budget baseline and its updates: The baseline, a ten-year project of spending and revenues based largely on current-law, is generally published in January but is often delayed because Congress and the President do not complete work on the budget in a timely manner. Updates to the baseline, taking into account laws enacted since the previous publication as well as changes in the state of the economy, are generally published in the spring and again in late summer.
Options to reduce the deficit: CBO generally produces this report of options to reduce the deficit every other December.
The accuracy of CBO’s projections: This report, which assesses how well the CBO’s previous projections matched actual outcomes, is usually released in January or February, soon after the end of the fiscal year. The CBO compares its estimates with actual budgetary outcomes to improve the accuracy of its forecasting.
Unauthorized appropriations: This report, listing federal programs receiving appropriations despite expired authorizations, is typically published in January to inform Congress as it begins working on appropriations. A follow-up report, with further analysis and updates on expiring authorizations, is usually released in the spring.
CBO also produces updates throughout the year of its works in progress, including legislation under review for cost estimates, and reports on various fiscal issues. Rep. Valadao’s bill would codify the requirement for CBO to post a publishing calendar of its major recurring releases. This would make it easier for legislators, policymakers, and the public to know when to expect key budgetary reports.
H.R. 9714, Congressional Budget Office Oversight Act (Reps. Ralph Norman (R-SC), Lisa McClain (R-MI), and Greg Lopez (R-CO))
The House Budget Committee has convened several hearings in this 118th Congress engaging in oversight of CBO. As NTUF noted in written testimony submitted in regard to the September 2024 hearing with CBO Director Phillip Swagel on ways to improve the operation of the agency:
A more consistent schedule of oversight hearings would benefit both CBO and Congress. It would enable CBO to better understand Congressional priorities and adjust its models accordingly. It would also allow lawmakers to provide feedback on recent cost estimates and discuss areas where CBO might improve its forecasting and transparency.
The Congressional Budget Office Oversight Act will enhance Congress’s ability to oversee CBO operations by requiring the Director of CBO to provide annual testimony at hearings held by the Budget Committees meetings in the House of Representatives and the Senate.
Annual hearings will provide Congress with the opportunity to address concerns about the methodology behind CBO estimates and improve the legislative process by fostering informed decisions about federal spending, deficits, and debt reduction.
H.R. 9716, Increasing Baseline Updates Act (Rep. Blake Moore (R-UT))
CBO generally publishes updates to the budget baseline through the course of the year to account for new budgetary actions in Congress and changes in economic conditions. This reform would codify a requirement for at least two updates. It would also amend the Congressional Budget and Impoundment Control Act, requiring CBO to provide baseline updates. Because CBO’s legislative cost estimates are measured against the most recent baseline, mandating updates would help improve the accuracy of projections.
H.R. 9751, Executive Action Cost Transparency Act (Rep. Ron Estes (R-KS))
This reform enhances transparency by requiring the CBO to include a table in its baseline report that details the budgetary effects of executive branch actions, such as regulations and executive orders, as well as major judicial rulings. While the CBO already conducts cost estimates of major rules, this bill takes a step further by consolidating these budgetary impacts into a single, accessible table. This is an important move toward improving fiscal oversight, ensuring that both Congress and the public are better informed about the financial consequences of government decisions. Ultimately, Congress should reaffirm its control over the power of the purse by subjecting rules and executive orders with significant budgetary costs to a legislative vote.
Conclusion
In conclusion, these reforms will enhance the transparency and functioning of the Congressional Budget Office, thereby ensuring that lawmakers and taxpayers have access to timely and accurate budget information. National Taxpayers Union Foundation applauds the leadership of Chairman Jodey Arrington (R-TX) for his commitment to strengthening oversight of CBO and the quality and efficiency of its operations.