Cost Estimate Clarity Act
- Sponsor
- Rep. Cline, Ben [R-VA-6]
- Committees
- Rules Committee (primary)
- Last action
- Apr 29, 2026
Bottom line
The bill aims to increase transparency in CBO cost estimates by requiring explicit disclosure of how baseline assumptions influence reported budgetary impacts.
What it actually does
This bill, the 'Cost Estimate Clarity Act,' amends the Congressional Budget Act of 1974 to require the Congressional Budget Office (CBO) to provide more detailed information about the impact of baseline assumptions on its cost estimates. Specifically, it mandates that CBO quantify the difference in cost estimates if baseline assumptions were not used, identify the specific assumptions causing these differences, and explain how baseline assumptions might make certain programs appear to have lower or no budgetary cost compared to actual expected federal expenditures, especially when programs are assumed to be extended or continued.
Proponents argue
Supporters argue that this bill will bring much-needed transparency to the federal budget process by revealing the true costs of legislation that might otherwise be obscured by current CBO baseline assumptions. They contend that the existing methodology can understate the long-term fiscal impact of programs that are routinely extended but assumed to expire, leading to a less accurate picture of federal spending and deficit projections. This change would empower policymakers and the public with a clearer understanding of budgetary decisions.
Opponents contend
Opponents might contend that the current CBO baseline methodology is a well-established and neutral tool for projecting future spending and revenue, and that introducing additional layers of analysis could complicate or delay the production of critical cost estimates. They may argue that requiring alternative calculations based on different assumptions could introduce confusion, potentially politicize the CBO's role, or make budget analysis less consistent and comparable over time.
The bill is very short and easy to read, making it highly accessible for anyone wishing to understand its provisions.
Section 2, amending Section 402 of the Congressional Budget Act of 1974 (2 U.S.C. 653)
Enhanced Transparency for CBO Baseline Assumptions
This provision mandates that when the Congressional Budget Office (CBO) prepares cost estimates for legislation, it must also describe the effects of using its standard baseline assumptions. This includes providing a quantitative estimate of how much the cost would differ if these baseline assumptions were not applied. Furthermore, CBO must identify which specific baseline assumptions are responsible for these differences and explain any instances where these assumptions make programs appear less costly than their actual expected federal expenditures, particularly when the baseline assumes a program's extension or continuation.
Supporters argue
Proponents argue that this provision is essential for fiscal accountability, as it will expose the true long-term costs of policies that might otherwise be masked by technical baseline assumptions, such as the automatic expiration of programs that are routinely reauthorized. They believe it will lead to more honest budgeting and better-informed legislative decisions.
Critics contend
Opponents may argue that this provision could complicate the CBO's already challenging task of producing timely and consistent cost estimates. They might suggest that adding alternative calculations based on different assumptions could introduce confusion rather than clarity, potentially making CBO reports less useful as a standardized metric for evaluating legislation.
Tradeoffs
The provision balances the desire for greater transparency in budget projections against the potential for increased complexity and workload for the CBO, and the risk of introducing multiple, potentially conflicting, cost figures for a single piece of legislation.