[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9040 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 9040

To require covered agencies to issue strategy and implementation plans 
   for the transfer of credit, guarantee, and insurance risk to the 
 private sector, to require the implementation of such plans, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 15, 2024

    Mr. Donalds (for himself and Mr. Krishnamoorthi) introduced the 
 following bill; which was referred to the Committee on Oversight and 
                             Accountability

_______________________________________________________________________

                                 A BILL


 
To require covered agencies to issue strategy and implementation plans 
   for the transfer of credit, guarantee, and insurance risk to the 
 private sector, to require the implementation of such plans, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TRANSFER OF GOVERNMENT CREDIT, GUARANTEE, AND INSURANCE RISK 
              TO THE PRIVATE SECTOR.

    (a) Government Risk Management Policy Statement.--
            (1) Minimization of government risk.--It is the policy of 
        the United States to assess, reduce and minimize the credit, 
        guarantee, and insurance risk of Federal Government programs in 
        each agency on an ongoing basis to the maximum extent practical 
        by transferring all such risk to the private sector at market 
        terms through a variety of financial instruments in a sustained 
        and transparent manner.
            (2) Use of private risk capacity.--In the development and 
        administration of Federal Government programs and awards in 
        each agency, it is the policy of the United States to reduce 
        costs to taxpayers and to protect taxpayers against 
        catastrophic losses through prudent and established risk 
        management techniques, including the frequent assessment of 
        Federal credit, guarantee and insurance risks, and where 
        appropriate, the transfer of risk to private markets to the 
        maximum extent practical.
    (b) Strategy and Implementation Plan.--
            (1) In general.--Not later than 12 months after the date of 
        the enactment of this Act, and not less frequently than once 
        every 5 years thereafter, the head of each covered agency shall 
        submit to the Director of the Office of Management and Budget, 
        and publish in the Federal Register, a strategy and 
        implementation plan that includes the following:
                    (A) An identification of any barrier (including any 
                policy, law, or regulation)--
                            (i) to transferring credit, guarantee, and 
                        insurance risk of the covered agency to the 
                        private sector; and
                            (ii) that would prohibit the covered agency 
                        from paying any costs associated with such 
                        transfer.
                    (B) An implementation plan for addressing any such 
                barrier or, in the case of a Federal statute that is a 
                barrier, a legislative recommendation to Congress for 
                removing the barrier.
                    (C) An identification of each office or division 
                within the covered agency principally responsible for 
                programs under which the covered agency has credit, 
                guarantee, or insurance risk.
                    (D) An analysis of the use and development of 
                private sector capabilities to development and 
                administer programs under which the covered agency has 
                credit, guarantee, or insurance risk.
                    (E) The estimated cost or savings of transferring 
                credit, guarantee, and insurance risk of the covered 
                agency to the private sector, including the expected 
                annual cost or savings--
                            (i) during a normal year;
                            (ii) during a year where the losses due to 
                        defaults on such credit, guarantee, or 
                        insurance are lower than normal; and
                            (iii) during a year where the losses due to 
                        defaults on such credit, guarantee, or 
                        insurance are higher than normal.
            (2) Public comment.--The head of each covered agency shall 
        provide a 60-day period for public comment on any strategy and 
        implementation plan described in paragraph (1) before the date 
        on which the report is published in the Federal Register.
    (c) Implementation.--
            (1) In general.--The head of each covered agency may 
        implement a strategy and implementation plan submitted under 
        subsection (b) to transfer credit, guarantee, and insurance 
        risk of the covered agency to the private sector.
            (2) Requirements.--In any transfer described under 
        paragraph (1), the head of a covered agency shall make such 
        transfer--
                    (A) under market terms; and
                    (B) in a transparent manner.
            (3) Prohibition on transfers that would increase certain 
        costs.--The head of a covered agency may not make a transfer 
        described under paragraph (1) if such transfer would directly 
        result in an increased fee, premium, or other cost to an 
        individual.
    (d) Reports.--
            (1) Reports by private sector entities to covered 
        agencies.--
                    (A) In general.--The head of each covered agency 
                shall require any private sector entity to which the 
                covered agency transfers credit, guarantee, or 
                insurance risk under subsection (c) to submit to the 
                covered agency a regular report that includes a 
                description of any claim received by the private sector 
                entity with respect to the transferred credit, 
                guarantee, or insurance risk, including any amount paid 
                for any such claim.
                    (B) Availability of report.--Each report described 
                under subparagraph (A) shall be made available, upon 
                request, to the Director of the Office of Management 
                and Budget and Congress.
            (2) OMB report.--Not later than 18 months after the date of 
        the enactment of this Act, and not less frequently than once 
        every 5 years thereafter, the Director of the Office of 
        Management and Budget shall submit to the President and the 
        Congress a report containing the following:
                    (A) A list of credit, guarantee, and insurance 
                obligations under the management or control of each 
                covered agency.
                    (B) A list of each credit, guarantee, and insurance 
                risk transfer program for each covered agency, with a 
                summary of--
                            (i) the estimated savings to the Federal 
                        Government related to loss claims associated 
                        with the transferred credit, guarantee, or 
                        insurance risk; and
                            (ii) the cost paid by the covered agency to 
                        make such transfer.
                    (C) The current and aggregate totals of credit, 
                guarantee, and insurance risk transferred to the 
                private sector on and after the date of the enactment 
                of this Act.
                    (D) Any recommendations to enhance or expand the 
                programs described in subparagraph (B).
    (e) Covered Agency Defined.--In this section, the term ``covered 
agency''--
            (1) means an agency (as defined under section 3502 of title 
        44, United States Code) that is responsible for the 
        administration of any credit, guarantee, or insurance program;
            (2) means the Federal National Mortgage Association and the 
        Federal Home Loan Mortgage Corporation during any period in 
        which such enterprise is under conservatorship or receivership 
        pursuant to section 1367 of the Federal Housing Enterprises 
        Financial Safety and Soundness Act of 1992 (12 U.S.C. 4617); 
        and
            (3) does not include--
                    (A) the Social Security Administration; or
                    (B) the Centers for Medicare & Medicaid Services.
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