Cost Estimate Clarity Act

This legislation, known as the Cost Estimate Clarity Act, aims to amend the Congressional Budget Act of 1974 to improve the transparency and accuracy of cost estimates produced by the Congressional Budget Office (CBO). It specifically requires the CBO to detail the impact of using baseline assumptions, as defined by the Balanced Budget and Emergency Deficit Control Act of 1985, when preparing its estimates.

For each estimate, the CBO must provide a quantitative estimate of the difference between the reported cost and what the cost would be without baseline assumptions, identifying the specific assumptions causing these discrepancies. Additionally, the CBO is directed to explain any programs or provisions where baseline assumptions result in lower or no budgetary costs compared to actual expected federal expenditures, particularly when the baseline assumes the extension or continuation of existing programs, benefits, or payment rates. This enhanced reporting seeks to provide a clearer and more comprehensive understanding of the true financial implications of proposed legislation.