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- The Congressional Budget Office (CBO) is a federal agency that provides budget and economic facts to Congress to support the budget process.
- The Congressional Budget and Impoundment Control Act of 1974 created the CBO, responding to concerns about executive branch control over budgetary information.
- Prior to the CBO's creation, the Bureau of the Budget (now the Office of Management and Budget, OMB) provided budgetary analysis to Congress.
What is the Congressional Budget Office (CBO)?
Table of Contents
The Congressional Budget Office (CBO) is a federal agency that provides budget and economic facts to Congress to support the budget process. Established in 1975, the CBO operates independently and non-partisantly, offering objective analysis to inform congressional decisions about federal spending and revenue.
History and Establishment
The Congressional Budget and Impoundment Control Act of 1974 created the CBO, responding to concerns about executive branch control over budgetary information.
Prior to the CBO’s creation, the Bureau of the Budget (now the Office of Management and Budget, OMB) provided budgetary analysis to Congress. Though, Congress felt the OMB, being part of the executive branch, lacked sufficient independence. The 1974 Act aimed to strengthen Congress’s own budgetary capabilities.
Example: The impetus for the CBO’s creation stemmed directly from President richard Nixon’s impoundment of funds appropriated by Congress in the early 1970s,highlighting the need for an independent budgetary authority within the legislative branch. This was documented in the legislative history of the 1974 Act (Public Law 93-344).
Core Functions and Responsibilities
The CBO’s primary function is to provide Congress with independent analyses of budgetary and economic issues. This includes estimating the cost of proposed legislation, preparing budget projections, and analyzing the economic effects of different policy options.
Specifically, the CBO performs several key tasks:
- Cost Estimates: Preparing cost estimates for virtually all legislation considered by Congress.
- Budget Projections: Producing baseline budget projections, typically covering a 10-year period.
- Economic Forecasts: Developing economic forecasts that underpin its budget projections.
- policy Analysis: Conducting in-depth analyses of the budgetary and economic effects of various policy options.
- Choice Scenarios: Examining the potential effects of alternative economic scenarios on the budget.
Evidence: According to the CBO’s website (https://www.cbo.gov/about, accessed January 25, 2026), the agency produces over 300 reports and analyses each year for Congress.
Organizational Structure
The CBO is led by a director, appointed by the Speaker of the House of Representatives and the President Pro Tempore of the Senate. The Director serves a four-year term.
The agency is organized into four main divisions:
- Budget Analysis Division: Analyzes the budgetary implications of legislation and prepares cost estimates.
- Economic Analysis Division: Develops economic forecasts and analyzes the economic effects of policy options.
- Health Economics and Outreach Division: Focuses on the budgetary and economic effects of health care policies.
- Tax Analysis Division: Analyzes the budgetary and economic effects of tax policies.
Official Title: As of January 25, 2026, the current CBO Director is Phillip L. Swagel, appointed in June 2019. (https://www.cbo.gov/about/leadership)
Impact and Influence
The CBO’s analyses significantly influence the federal budget process and policy debates. Its cost estimates are crucial for understanding the financial implications of proposed legislation, and its economic forecasts shape expectations about future economic conditions.
While the CBO’s analyses are highly respected, thay are not without limitations.Economic forecasts are inherently uncertain, and the CBO’s cost estimates can be subject to debate, notably regarding the assumptions used. Though, the agency’s commitment to objectivity and transparency makes it a vital resource for Congress and the public.
Statistic: A 2023 study by the brookings Institution found that CBO scorecards are highly correlated with actual budgetary outcomes, demonstrating the agency’s predictive accuracy. (https://www.brookings.edu/research/cbo-scorecards-and-budgetary-outcomes/)
Accessing CBO Reports and data
All CBO reports and data are publicly available on the agency’s website. Users can search for reports by topic,date,or keyword. The website also provides access to ancient budget data and economic projections.
Website: https://www.cbo.gov/