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| Agency overview | |
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| Formed | July 12, 1974 |
| Headquarters | Ford House Office Building, 4th Floor Second and D Streets,SW Washington, D.C. 20515 |
| Employees | 250 |
| Annual budget | $55.0 million (FY 2020) |
| Agency executives |
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| Website | www |
TheCongressional Budget Office (CBO) is afederal agency within thelegislative branch of theUnited States government that provides budget and economic information to Congress.[1]Inspired by California'sLegislative Analyst's Office that manages the state budget in a strictly nonpartisan fashion, the CBO was created as a nonpartisan agency by theCongressional Budget and Impoundment Control Act of 1974.[2]
Whereas politicians on both sides of the aisle have criticized the CBO when its estimates have been politically inconvenient,[3][4] economists and other academics overwhelmingly reject that the CBO is partisan or that it fails to produce credible forecasts.[4][5] There is a consensus among economists that "adjusting for legal restrictions on what the CBO can assume about future legislation and events, the CBO has historically issued credible forecasts of the effects of both Democratic and Republican legislative proposals."[5]
The Congressional Budget Office was created by Title II of theCongressional Budget and Impoundment Control Act of 1974 (Pub. L. 93-344), which was signed into law by PresidentRichard Nixon on July 12, 1974.[6] Official operations began on February 24, 1975, withAlice Rivlin as director.[7]
The CBO's creation stems from a fight between President Nixon and aDemocratic-controlledCongress. Congress wanted to protect itspower of the purse from the executive.[4][8] The CBO was created "within the legislative branch to bolster Congress's budgetary understanding and ability to act. Lawmakers' aim was both technical and political: Generate a source of budgetary expertise to aid in writing annual budgets and lessen the legislature's reliance on the president'sOffice of Management and Budget."[4] In 2015, the Brookings Institution reported that since its creation, the CBO has since supplanted the OMB "as the authoritative source of information on the economy and the budget in the eyes of Congress, the press, and the public."[7]
The Congressional Budget Office isnonpartisan, and produces "independent analyses of budgetary and economic issues to support the Congressional budget process."[9] Each year, the agency releases reports and cost estimates for proposed legislation, without issuing any policy recommendations.
With respect to estimating spending for Congress, the Congressional Budget Office serves a purpose parallel to that of theJoint Committee on Taxation for estimating revenue for Congress, theDepartment of the Treasury for estimating revenues for theExecutive branch. This includes projections on the effect onnational debt and cost estimates for legislation.[10]
Section 202(e) of the Budget Act requires the CBO to submit periodic reports about fiscal policy to theHouse andSenate budget committees to provide baseline projections of the federal budget. This is currently done by preparation of an annualEconomic and Budget Outlook plus a mid-year update. The agency also each year issuesAn Analysis of the President's Budgetary Proposals for the upcoming fiscal year per a standing request of theSenate Committee on Appropriations. These three series are designated essential titles distributed toFederal Depository Libraries and are available for purchase from theGovernment Publishing Office. The CBO often provides testimony in response to requests from various Congressional committees and issues letters responding to queries made by members of Congress.
The Congressional Budget Office is divided into nine divisions.[11]
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TheSpeaker of the House of Representatives and thePresident pro tempore of the Senate jointly appoint the CBO Director after considering recommendations from the two budget committees. The term of office is four years, with no limit on the number of terms a director may serve. Either house of Congress, however, may remove the director by resolution. At the expiration of a term of office, the person serving as Director may continue in the position until his or her successor is appointed. The list of directors of the CBO are:[12]
| Director | Term |
|---|---|
| Alice Rivlin | February 24, 1975 – August 31, 1983 |
| Rudolph G. Penner | September 1, 1983 – April 28, 1987 |
| Edward Gramlich(Acting) | April 28, 1987 – December 1987 |
| James L. Blum(Acting) | December 1987 – March 6, 1989 |
| Robert Reischauer | March 6, 1989 – February 28, 1995 |
| June E. O'Neill | March 1, 1995 – January 29, 1999 |
| James L. Blum(Acting) | January 29, 1999 – February 3, 1999 |
| Dan Crippen | February 3, 1999 – January 3, 2003 |
| Barry B. Anderson(Acting) | January 3, 2003 – February 5, 2003 |
| Douglas Holtz-Eakin | February 5, 2003 – December 29, 2005 |
| Donald B. Marron Jr.(Acting) | December 29, 2005 – January 18, 2007 |
| Peter R. Orszag | January 18, 2007 – November 25, 2008 |
| Robert A. Sunshine(Acting) | November 25, 2008 – January 22, 2009 |
| Douglas Elmendorf | January 22, 2009 – March 31, 2015 |
| Keith Hall | April 1, 2015 – May 31, 2019[13] |
| Phillip Swagel | June 3, 2019 – present |
Whereas politicians on both sides of the aisle have criticized the CBO when its estimates have been politically inconvenient,[3][4] economists and other academics overwhelmingly reject that the CBO is partisan or that it fails to produce credible forecasts.
A March 2017 survey of leading economists shows a consensus behind the notion that "adjusting for legal restrictions on what the CBO can assume about future legislation and events, the CBO has historically issued credible forecasts of the effects of both Democratic and Republican legislative proposals."[5] According to MIT economistDavid Autor, the "CBO has a good track record with a very difficult assignment. It errs, but not systematically or with partisan intent."[5] According to Yale economistChristopher Udry, "There is no credible evidence of partisan bias."[5] EconomistWalter E. Williams, aclassical liberal, wrote in 1998 that the CBO was well-regarded for its "honest numbers" on fiscal and economic matters.[7] According to theLos Angeles Times, "the CBO's analyses and forecasting are regarded as good or better than others doing similar work... economists say that the CBO's economic projections generally compare favorably against other outfits, and its long-term budget estimates have been fairly accurate."[3]
According to George Washington University political scientist Sarah Binder, the CBO "has emerged over its history as a neutral analyst of congressional budgets and cost estimates for proposed legislation."[4] The agency has "a nonpartisan staff culture".[4]
Historically, theHouse Budget Committee andSenate Budget Committee have insulated the CBO from external pressures and attempts to politicize or weaken the office.[7] Professor Philip Joyce of theUniversity of Maryland School of Public Policy writes:
This is quite surprising, in a sense, given the partisan nature of the Congress. It is not necessarily that these partisans have embraced nonpartisanship as a positive end in itself, however. Rather, the Budget Committees (and especially their leadership and staff) have recognized that a weak CBO (one that does not have a reputation for objective analysis, and whose conclusions are viewed as partisan) is not in their interest. A weak CBO weakens the Budget Committees, and indeed weakens Congress as a whole in its inevitable battles with the executive over budget and economic policy.[7]
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