Agricultural Reconciliation Act of 2012

Cost Estimate
April 23, 2012

As approved by the House Committee on Agriculture on April 18, 2012

The Agricultural Reconciliation Act of 2012 would make several changes to the Supplemental Nutrition Assistance Program (SNAP) and extend its authorization for one year. CBO estimates that enacting this legislation would reduce direct spending by $5.6 billion in 2013 and by $33.7 billion over the 2013-2022 period, relative to CBO’s March 2012 baseline projections. Those estimates are based on CBO’s assumption that the legislation will be enacted on or near October 1, 2012.

In addition, the Chairman of the House Committee on the Budget has directed CBO to prepare estimates assuming a July 1, 2012, enactment date for this year’s reconciliation proposals. If the legislation were enacted by that earlier date, some of the SNAP proposals would result in greater reductions in direct spending than those estimated assuming an October 1 enactment date. Under the alternative assumption of a July 1 enactment date, CBO estimates that the SNAP proposals would reduce direct spending by $7.8 billion over the 2012-2013 period and $35.8 billion over the 2012-2022 period.

The legislation contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA).