CBO is required to develop a cost estimate for virtually every bill reported by Congressional committees to show how it would affect spending or revenues over the next five years or more. For most tax legislation, CBO uses estimates provided by the Joint Committee on Taxation, a separate Congressional analytic group that works closely with the two tax-writing committees. CBO also prepares cost estimates for use in drafting bills (especially in the early stages), formulating floor amendments, and working out the final form of legislation in conference committees. To the extent that its resources permit, CBO estimates the cost of bills at the request of individual Members.
Keep in mind that each CBO estimate provided here is for a bill or resolution at a particular stage of the legislative process and that the bill--and its estimated budgetary effects--may have changed since the estimate was prepared. To check on the current legislative status of a particular bill or to find the text of a bill and other related information, visit the Library of Congress's Thomas: Legislative Information page.
In addition to regular cost estimates (prepared primarily for committee-reported bills), CBO prepares estimates for legislation that has been cleared by the Congress and for which CBO estimates an impact on either direct spending or governmental receipts.
In the past, where appropriate, CBO's estimates contained the projected costs to state and local governments of carrying out the proposed legislation. Enactment of the Unfunded Mandates Reform Act of 1995 greatly expanded CBO's responsibilities in that area. That law amended the Congressional Budget Act to require CBO to give authorizing committees a statement about whether reported bills contain federal mandates. If the five-year direct costs of an intergovernmental or private-sector mandate exceed specified thresholds, CBO must provide an estimate of those costs (if feasible) and the basis of the estimate.
CBO's statement must also include an assessment of what funding is authorized in the bill to cover the costs of the mandates and, for intergovernmental mandates, an estimate of the appropriations needed to fund such authorizations for up to 10 years after the mandate is effective. When requested, CBO is also required to assist committees by preparing studies of legislative proposals containing federal mandates. Unless listed separately, intergovernmental and private-sector mandate statements are included in each cost estimate.
CBO's cost estimates have become an integral part of the legislative process, and committees increasingly refer to them at every stage of drafting bills. The estimates may also have an impact on the final outcome of legislation because they are used to determine whether committees are complying with the annual budget resolutions and reconciliation instructions.