[1] The bill would also require the federal budget to reflect the net impact of programs administered by Fannie Mae and Freddie Mac.

He further said that "I attribute the need for today's action primarily to the inherent conflict and flawed business model embedded in the GSE structure, and to the ongoing housing correction.

"[4] That same day, Federal Reserve Bank chairman Ben Bernanke stated his support: "I strongly endorse both the decision by FHFA Director Lockhart to place Fannie Mae and Freddie Mac into conservatorship and the actions taken by Treasury Secretary Paulson to ensure the financial soundness of those two companies.

The Treasury committed to invest as much as US$200 billion in preferred stock and extend credit through 2009 to keep the GSEs solvent and operating.

Defines the "Treasury discounting component" as the estimated long-term cost to the federal government of a direct loan or loan guarantee (or modification) calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays.

[11] The bill would terminate mandatory on-budget status treatment for a GSE after all of the following occurs: (1) its conservatorship has been terminated; (2) the Director of the Federal Housing Finance Agency (FHFA) has certified in writing that the GSE has repaid to the federal government the maximum amount consistent with minimizing the total federal cost of the financial assistance provided to the GSE; and (3) its charter has been revoked, annulled, or terminated and its authorizing statute has been repealed.

[11] The bill would require any federal agency, whenever it prepares and submits written budget justification materials for any congressional committee, to post them on the same day as its submission on the "open" page of its public website.

Specifically, the bill would amend the Federal Credit Reform Act of 1990 (FCRA) to require that, beginning in fiscal year 2017, the cost of direct loans or loan guarantees be recognized in the federal budget on a fair-value basis using guidelines set forth by the Financial Accounting Standards Board.

[1] The bill also would require that the Government Accountability Office (GAO) produce annual reports on the progress that federal agencies make in its implementation; the federal budget reflect the net impact of programs administered by Fannie Mae and Freddie Mac; federal agencies post budget justifications on public websites on the same day they are submitted to the Congress; and the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) prepare studies on the costs of federal insurance programs and the historical application of the budgetary terms revenue, offsetting collections, and offsetting receipts.

[1] The CBO estimates that measuring the cost of federal credit programs on a fair-value basis as prescribed under H.R.

Assuming appropriation of the necessary amounts, the CBO estimates such costs would total $16 million over the 2014-2019 period.

[1] The Budget and Accounting Transparency Act of 2014 was introduced into the United States House of Representatives on May 8, 2013 by Rep. Scott Garrett (R, NJ-5).

"[2] Romina Boccia of the right-wing organization The Heritage Foundation wrote a report in favor of the legislation, arguing that "improper accounting in the budget for the downside risks that the GSEs (Government-sponsored enterprise) pose for American taxpayers is creating the illusion that the GSEs are a free lunch for Washington.

[14] This article incorporates public domain material from websites or documents of the United States Government.