H.R. 5749 would direct federal financial regulators to change the calculation of the amount of capital that must be held by banking institutions to cover potential financial risks associated with certain derivative contracts. CBO estimates that enacting H.R. 5749 would increase deficits by $14 million over the 2018-2028 period. That amount includes a net increase in direct spending of $18 million and an increase in revenues of $4 million. Most of the cost would be recovered from financial institutions in years after 2028.
Because enacting the legislation would affect direct spending and revenues, pay-as-you-go-procedures apply.
CBO estimates that enacting H.R. 5749 would not increase net direct spending by more than $2.5 billion or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2029.
H.R. 5749 contains no intergovernmental mandates as defined in the Unfunded Mandate Reform Act (UMRA). The act would impose a private-sector mandate as defined in UMRA. If financial regulators increased fees to offset some of the costs of implementing the act, H.R. 5749 would increase the cost of an existing mandate on private entities required to pay those fees. CBO estimates that the cost of the mandate would be small and below the annual private-sector threshold established in UMRA ($160 million in 2018, adjusted annually for inflation).