Bill
HR 1388
The bill would require federal financial assets and liabilities to be measured and reported using fair-value (market-based) accounting in budgeting and financial disclosures.
Status and procedural history
- Bill number: H.R. 1388
- Title: Fair‑Value Accounting and Budget Act
- Classification: Bill (House)
- Sponsors: Rep. Ralph Norman (primary); cosponsors Chuck Edwards, Keith Self, Glenn Grothman
- Introduced: (metadata shows) May 26, 2025; legislative actions list an introduction date of Feb 14, 2025 (record appears inconsistent).
- Committees: Referred to the Committee on the Budget and, additionally, to the Committee on Rules.
- Recent actions (selected): Referred to Local & Consent Calendars (May 29–30, 2025); laid before the House and placed on the Congratulatory & Memorial Resolutions Calendar (June 1, 2025); recorded as adopted and reported enrolled (June 1, 2025). (See note below about available bill text.)
Purpose and intent (based on title and bill name)
- The bill’s stated aim, as implied by its title, is to change how federal financial assets and liabilities are measured and reported for budgeting and financial disclosure — moving from traditional historical or cash‑based measures to “fair‑value” (market‑based) accounting in one or more federal budget and reporting contexts.
- Typical objectives of such legislation would be to increase transparency in federal financial statements, produce budget measures that better reflect market risks and current economic values, and change how long‑term obligations and credit programs are scored in the federal budget.
Key provisions likely addressed (text not provided; these are commonly associated with fair‑value accounting proposals)
- Require OMB and/or the Department of the Treasury and CBO to adopt fair‑value measurement standards for specified federal assets and liabilities (for example, federal loans, guarantees, mortgage‑backed securities, federal corporations’ holdings, or trust funds).
- Direct changes to budget scoring rules and the presentation of deficits/surpluses to reflect fair‑value gains/losses.
- Establish transition rules, valuation methodologies, disclosure requirements, and exceptions (e.g., for Social Security/Medicare trust funds or certain nonmarketable instruments).
- Require periodic revaluation and reporting, and specify effective dates and implementation timelines.
- Possible requirement for OMB to issue implementing guidance and for CBO to adopt corresponding scoring methods.
Who would be affected
- Federal entities: OMB, CBO, Treasury, agencies that manage federal credit programs and trust funds.
- Congressional budgeting process: committee scorekeeping and statutory budget baselines.
- Financial statement users: Congress, investors, analysts, and the public — through materially different reported deficits, liabilities, or assets.
- Potential indirect effects on federal program design, funding decisions, and political debates over the size and trajectory of deficits.
Potential impacts and considerations
- Increased transparency: market‑based valuations can show current economic exposures.
- Volatility: fair‑value measures can introduce more year‑to‑year variability in reported deficits due to market movements.
- Scoring & policy incentives: changing measurement could alter perceived costs of programs (e.g., student loans, mortgage guarantees), possibly affecting policy choices.
- Implementation complexity: valuation models, illiquid assets, and consistency with existing statutory budget rules could pose substantive and technical challenges.
Important note and next steps
- This summary is based on bill metadata and the bill title. The full legislative text, committee reports, and official summaries are needed to state exact provisions and legal requirements. To review the authoritative bill text and status, consult Congress.gov or the House clerk’s records for H.R. 1388 (Fair‑Value Accounting and Budget Act).
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
