As reported by the House Committee on Financial Services on March 25, 2026
By Fiscal Year, Millions of Dollars | 2026 | 2026-2031 | 2026-2036 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Direct Spending (Outlays) | 0 | 0 | 0 | ||||||||
Revenues | 0 | 0 | 0 | ||||||||
Increase or Decrease (-) in the Deficit | 0 | 0 | 0 | ||||||||
Spending Subject to Appropriation (Outlays) | 0 | * | not estimated | ||||||||
Increases net direct spending in any of the four consecutive 10-year periods beginning in 2037? | No | Statutory pay-as-you-go procedures apply? | No | ||||||||
Mandate Effects | |||||||||||
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2037? | No | Contains intergovernmental mandate? | Yes, Under Threshold | ||||||||
Contains private-sector mandate? | Yes, Under Threshold | ||||||||||
* = between -$500,000 and $500,000. | |||||||||||
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H.R. 7127 would prohibit state and local governments from regulating certain securities that are traded on markets that are not national securities exchanges. The bill would require the Securities and Exchange Commission (SEC) to define what securities would be exempt from state and local regulation under the bill.
CBO estimates that implementing H.R. 7127 would cost the SEC less than $500,000 over the 2026-2031 period. Because the commission is authorized to collect fees each year to offset its annual appropriation, CBO expects that the net effect on discretionary spending over the 2026-2031 period would be negligible, assuming appropriation actions consistent with that authority.
H.R. 7127 would impose intergovernmental and private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). CBO estimates that the cost to comply with those mandates would not exceed the thresholds established in UMRA ($107 million and $214 million in 2026, respectively, adjusted annually for inflation).
The bill would expand an existing preemption of state laws governing off-exchange secondary trading of securities. Although the preemptions would limit the application of state laws and regulations, it would impose no duty on state governments that would result in additional spending or loss of revenues.
If the SEC increases fees to offset the costs associated with implementing the bill, H.R. 7127 would increase the cost of an existing mandate on private entities required to pay those assessments. CBO estimates that the incremental cost of the mandate would be small.
The CBO contacts for this estimate are Sean Christensen (for federal costs) and Rachel Austin (for mandates). The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.
Phillip L. Swagel
Director, Congressional Budget Office