Congressional Budget Office releases cost estimates for H.R. 1365

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CBO provides the U.S. Congress with formal cost estimates that analyze the likely effects of proposed legislation on the federal budget.

The Congressional Budget Office has released a report on its cost estimates for H.R. 1365 introduced by Congressman Michael San Nicolas which seeks to make technical corrections to the Guam World War II Loyalty Recognition Act.

Using information from the Department of Justice about how much compensation is due, CBO estimates that enacting H.R. 1365 would increase direct spending by $40 million for compensation payments as funds become available over the 2020-2023 period.

“Although the five-year and ten-year totals are correct, the initial estimate indicated that there would be some costs in 2019. The legislation has not yet passed either House of Congress and CBO assumes it would be enacted near the end of fiscal year 2019. Given that timing, CBO expects spending would probably commence in fiscal year 2020,” CBO stated.

San Nicolas has announced that H.R. 1365 will be heard in the full House next week after passing its mark-up hearing a few weeks ago.

H.R. 1365 would authorize a portion of customs duties and federal income taxes collected in Guam to be spent to compensate certain residents and surviving family members for their treatment during the island’s occupation by Japanese military forces during World War II.

According to CBO, those customs duties and income taxes are already deposited in the U.S. Treasury as miscellaneous receipts.

Each year, CBO provides the U.S. Congress with formal cost estimates that analyze the likely effects of proposed legislation on the federal budget. The U.S. Congress uses CBO’s cost estimates to help it implement rules and procedures related to budget enforcement.

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