CBO and the staff of the Joint Committee on Taxation estimate that changes in direct spending and revenues from enacting the manager’s amendment would reduce budget deficits by $33.6 billion over the 2017-2027 period. That estimate of reduced deficits is $9.5 billion more than the estimated amount of deficit reduction under H.R. 10 as ordered reported by the House Committee on Financial Services on May 4, 2017. The amendment’s savings are composed of a reduction in direct spending of $30.8 billion and an increase in revenues of $2.8 billion. Most of that budgetary savings would come from eliminating the Federal Deposit Insurance Corporation’s authority to use the Orderly Liquidation Fund and changing how the Consumer Financial Protection Bureau and certain other financial regulators are funded. CBO estimates that implementing H.R. 10 also would cost $11.6 billion over the 2017-2027 period, subject to appropriation of the necessary amounts.
Enacting the amendment would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027.
CBO's previous cost estimate of H.R. 10 explains the basis for most of the budgetary effects of the manager’s amendment as well.
The manager’s amendment would make the operating costs and collection of fees by the Office of the Comptroller of the Currency, the Federal Housing Finance Agency, and the non-monetary policy expenses of the Federal Reserve subject to the annual appropriations process. The amendment also would authorize the Federal Deposit Insurance Corporation to charge additional fees to offset appropriations for the salaries and expenses of certain employees. Under the amendment, certain implementation and administrative costs of the Federal Reserve would be subject to appropriation.
Those changes account for most of the difference in CBO's cost estimates for the two versions of the legislation. Over the 2018-2027 period, CBO estimates that enacting those amended provisions would reduce net direct spending by $0.7 billion, increase revenues by $8.8 billion, and have a net cost of $9.6 billion subject to appropriation of the necessary amounts.