Cost Estimates Improvement Act
- Sponsor
- Sen. Scott, Rick [R-FL]
- Committees
- Budget Committee (primary)
- Last action
- Sep 17, 2026
Bottom line
This bill mandates that CBO and JCT cost estimates for legislation must include the associated public debt servicing costs, aiming for greater fiscal transparency and accountability.
What it actually does
This bill amends the Congressional Budget Act of 1974 to mandate that any cost estimate prepared by the Congressional Budget Office (CBO) or the Joint Committee on Taxation (JCT) must include the costs associated with servicing the public debt, to the extent practicable. This aims to provide a more comprehensive view of the fiscal impact of proposed legislation by factoring in the interest payments on any additional debt incurred.
Proponents argue
Proponents argue that including debt servicing costs provides a more accurate and complete picture of the true fiscal impact of new legislation, promoting greater fiscal responsibility and transparency in congressional budgeting. They believe it will force lawmakers to consider the long-term implications of increased spending or tax cuts on the national debt and the government's interest payment obligations.
Opponents contend
Opponents might argue that while the intent is good, practically calculating these costs for every piece of legislation could be overly complex, time-consuming, and potentially lead to estimates that are difficult to attribute precisely to individual bills. This could slow down the legislative process without significantly improving the actionable accuracy of cost estimates, as CBO already provides broader debt projections.
The bill is extremely short and straightforward, making it very accessible for any reader to understand its core purpose in a matter of seconds.
Section 2(a)
Mandate to Include Debt Servicing Costs in CBO and JCT Estimates
This provision requires the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) to incorporate the costs associated with servicing the public debt into their financial estimates for any proposed legislation. This means that when CBO or JCT analyze a bill, they must now, where feasible, calculate and report how that bill's impact on the national debt will also affect the government's interest payments on that debt, providing a more complete fiscal picture.
Supporters argue
Supporters argue that this provision is crucial for fiscal transparency, ensuring that lawmakers and the public fully understand the long-term financial implications, including interest costs, of new spending or tax policies. They contend it will foster more responsible budgeting by making the true cost of increasing the national debt explicit.
Critics contend
Critics might argue that while conceptually sound, the practical implementation of this mandate could be challenging. They may contend that accurately attributing specific debt servicing costs to individual pieces of legislation, especially smaller ones, could be highly complex and add significant delays to the scoring process without providing substantially more actionable information than current CBO debt projections.
Tradeoffs
The provision balances the desire for greater fiscal transparency and accountability against the potential for increased complexity and workload for CBO and JCT, and the difficulty of precisely attributing marginal debt servicing costs to individual legislative actions.