This bill mandates that the Congressional Budget Office include the estimated budgetary effects of executive and judicial actions in federal budget baseline calculations and reports.
Ron Estes
Representative
KS-4
The Executive Action Cost Transparency Act aims to increase accountability by requiring the Congressional Budget Office (CBO) to include the estimated budgetary effects of significant executive and judicial actions in its baseline budget calculations. Agencies must provide documentation for these actions to the CBO upon implementation. Furthermore, the CBO must report separately on any major actions estimated to cost or save at least $50 billion over a ten-year period.
New Transparency Act Requires CBO to Score Executive Actions Over $50 Billion
This bill, officially titled the Executive Action Cost Transparency Act, is all about pulling back the curtain on how much non-legislative decisions truly cost the taxpayer. Right now, when Congress passes a bill, the Congressional Budget Office (CBO) scores it—meaning they run the numbers to estimate its financial impact. This act mandates that the CBO must now include the financial effects of major executive branch actions (like new regulations) and even judicial decisions in their standard budget baseline reports (SEC. 2).
The $50 Billion Rule and the 10-Day Clock
Think of the CBO baseline as the government’s financial forecast. If an executive or judicial action is estimated to cost or save $50 billion or more over the next ten years, the CBO must list it separately in their reports. This is a big deal because actions from the White House or federal courts that have massive financial implications often fly under the radar without this kind of formal, public cost estimate (SEC. 2).
To make this possible, the bill sets a tight deadline for federal agencies. If an agency issues a new executive action—say, a major environmental rule or a new policy on student loan servicing—they have just 10 days to send the CBO all related documentation, guidance, and data. This is the fine print that hits the desks of federal workers: they now have a rapid turnaround requirement to justify the financial impact of their actions to a third party (SEC. 2).
What This Means for Everyday Life
For most people, this doesn't change anything directly, but it fundamentally changes how Congress and the public view the true cost of government. Imagine a new regulation requires every construction company to use a specific type of safety equipment. That rule wasn't passed by Congress, but it costs the industry billions, which eventually gets passed down to consumers. Under this act, that cost would now be officially scored and publicized, giving lawmakers a clearer picture of the government’s overall fiscal footprint.
This increased transparency is a major benefit for anyone who cares about accountability. But it also creates immediate administrative hurdles. Ten days is a tight window, especially for complex rules that take months to draft. Federal agencies might struggle to compile all necessary financial data that quickly, potentially leading to incomplete initial cost estimates. Furthermore, the bill includes a curious clause: the chairs of the House and Senate Budget Committees can still direct the CBO not to include these scores, giving those few individuals a significant, discretionary override power over this transparency requirement (SEC. 2).