Credit Reform in the United States

Credit Reform in the Federal Budget Process

Meaning of Credit Reform in the congressional and executive budget processes (GAO source): The method of controlling and accounting for credit programs in the federal budget after fiscal year 1991. The Federal Credit Reform Act of 1990 (FCRA) added title V to the Congressional Budget Act of 1974. It requires that the credit subsidy cost be financed from new budget authority and be recorded as budget outlays at the time the direct or guaranteed loans are disbursed. In turn, it authorizes the creation of nonbudgetary financing accounts to receive this subsidy cost payment. Agencies must have appropriations for the subsidy cost before they can enter into direct loan obligations or loan guarantee commitments. (See also Credit Subsidy Cost, Direct Loan Obligation, Discount Rate, and Loan Guarantee Commitment under Federal Credit; Present Value.) See Risk Category.

Credit Reform

In Legislation

Credit Reform in the U.S. Code: Title 2, Chapter 17A, Subchapter III

The current, permanent, in-force federal laws regulating credit reform are compiled in the United States Code under Title 2, Chapter 17A, Subchapter III. It constitutes “prima facie” evidence of statutes relating to Congress (including credit reform) of the United States. The reader can further narrow his/her legal research of the general topic (in this case, Budget and Congress of the US Code, including credit reform) by chapter and subchapter.

Resources

See Also

• Federal Appropriations
• Entries about the United States Budget Process in the Encyclopedia (including Credit Reform)
• Public Debt

Further Reading

• Legislatures and the budget process: the myth of fiscal control

  (J Wehner, 2010)

• Reconcilable Differences?: Congress, the Budget Process, and the Deficit (JB Gilmour, 1990)
• Fiscal institutions and fiscal performance

  (JM Poterba, J von Hagen, 2008)