Cost Estimates Improvement Act

The Cost Estimates Improvement Act proposes a change to how the federal government calculates the price tag of new legislation. Currently, when the Congressional Budget Office or the Joint Committee on Taxation analyzes a bill, they typically focus on the direct spending or revenue changes. This bill would require these agencies to also calculate and include the costs of servicing the public debt—essentially the interest payments—that would result from the proposed spending.

If enacted, this change aims to provide a more complete picture of how new laws affect the national deficit over time. For everyday citizens, this could lead to higher reported costs for various government programs and initiatives, as the long-term interest on borrowed money would be factored into the official debate. Proponents suggest this would increase transparency regarding the true cost of government borrowing, while the practical impact would be more comprehensive financial data available to lawmakers during the voting process.