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What is the Congressional Budget Office (CBO)?
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The Congressional Budget Office (CBO) is a federal agency within the legislative branch of the U.S. government that provides budget and economic facts to Congress to support the budget process. Established in 1975, the CBO’s primary function is to provide autonomous analyses of budgetary and economic issues, and to score the potential costs of proposed legislation.
The CBO was created as part of the Congressional Budget and Impoundment Control Act of 1974, responding to concerns about executive branch control over the federal budget. Prior to its creation, Congress largely relied on the executive branch - specifically the Office of Management and Budget (OMB) – for budgetary information. The CBO was intended to provide Congress with an independent source of expertise. It operates independently and non-partisantly, meaning it does not advocate for any particular policy outcome.
Example: In February 2024,the CBO released a report projecting that the federal budget deficit would total $1.6 trillion in 2024. (“Budget and Economic Outlook: 2024 to 2034”)
What does the CBO do?
The CBO performs several key functions, all centered around providing Congress with objective, nonpartisan analysis of budgetary and economic issues. These include scoring legislation, creating budget and economic forecasts, and analyzing the effects of policy options.
Specifically, the CBO:
- Scores Legislation: Estimates the cost of proposed legislation over a 10-year period, and sometimes longer. This “score” is crucial for Congress to understand the budgetary impact of bills.
- Prepares budget and Economic Forecasts: develops baseline projections of federal spending, revenues, deficits, and the economy. These projections are updated regularly.
- Analyzes Policy Options: Examines the potential effects of diffrent policy choices on the budget and the economy.
- Publishes Reports and Briefs: Releases a wide range of reports and briefs on topics related to the budget, the economy, and government programs.
The CBO’s analyses are used by members of Congress, congressional committees, and the public to inform debates about federal spending and taxation. The agency’s work is considered highly influential in shaping budget policy.
Evidence: The CBO’s scoring of the Affordable Care Act (ACA) in 2010 was a pivotal moment, influencing the debate and eventual passage of the law. (“Estimated Impact of the Affordable Care Act on the Federal Budget: 2010-2019”)
How is the CBO structured?
The CBO is led by a Director, who is appointed to a four-year term by the Speaker of the House and the President Pro Tempore of the Senate. The agency is organized into several divisions, each with specific areas of expertise.
Key divisions within the CBO include:
- Budget Analysis Division: Analyzes the budgetary implications of legislation and prepares budget projections.
- Economic Analysis Division: Develops economic forecasts and analyzes the economic effects of policy options.
- Health Economics and Output Modeling Division: Focuses on the budgetary and economic effects of health care policies.
- Human Resources Division: Analyzes programs related to education, income security, and health.
- Tax Analysis Division: Analyzes the revenue effects of tax legislation.
The CBO employs a staff of approximately 280 people, including economists, budget analysts, and other experts. The agency’s staff is prohibited from engaging in partisan political activity.
Official Title: The current CBO Director, as of January 9, 2026, is Phillip L. Swagel. (“CBO Leadership”)
What is the difference between the CBO and the OMB?
While both the Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) deal with federal budget issues, they serve different branches of government and have distinct roles. The OMB is part of the executive branch, while the CBO is part of the legislative branch.
Here’s a breakdown of the key differences:
- OMB: Develops the President’s budget proposal, oversees the implementation of the budget, and reviews regulations.it advocates for the President’s policy priorities.
- CBO: provides independent,nonpartisan analysis to Congress.It does not make policy recommendations or advocate for any particular outcome.
The OMB’s primary goal is to help the President achieve their policy objectives, while the CBO’s goal is to provide Congress with objective information to inform its decisions. This separation of functions is intended to ensure a check and balance in the budget process.
Statistic: In fiscal year 2023, the OMB managed a federal budget of approximately $6.13 trillion.(“The President’s Budget”)
How can I access CBO reports and data?
The CBO makes its reports, data, and other publications freely available to the public on its website.users can search for information by topic, publication date, or keyword.