article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Federal Credit Cost Reduction Act of 1994''. SEC. 2. TREATMENT OF ADMINISTRATIVE COSTS REGARDING DIRECT AND GUARANTEED LOANS. Paragraph (5)(A) of section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(A)) is amended by striking ``excluding'' and inserting ``including''. SEC. 3. TREATMENT OF ADMINISTRATIVE COSTS IN THE PRESIDENT'S ANNUAL BUDGET SUBMISSION. Section 1105(a) of title 31, United States Code, is amended by adding at the end the following new paragraphs: ``(29) a separate listing of administrative costs for direct loans and loan guarantees computed on a cash accounting basis for any such loans and guarantees originating before enactment of this paragraph. ``(30) an appendix setting forth on a cash accounting basis the administrative costs of all loans and loan guarantees by program, by agency, and for the Government.''. SEC. 4. FEDERAL CREDIT SUBSIDY RATES. (a) Definition of Subsidy Rate.--Section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a) is amended by adding at the end the following new paragraph: ``(10) The term `subsidy rate' for a fiscal year means-- ``(A) in the case of a direct loan, the cost of all loans made for a covered program during that year divided by the total direct loan obligations for that same covered program; and ``(B) in the case of a loan guarantee commitment, the cost of all loan guarantees incurred for a covered program during that year divided by the total amount of the loan guarantee commitments for that same covered program.''. (b) Maximum Subsidy Rates.--(1) The Federal Credit Reform Act of 1990 is amended by adding at the end the following new section: ``SEC. 508. MAXIMUM FEDERAL CREDIT SUBSIDY RATES. ``(a) Maximum Subsidy Rates.--The maximum permissible subsidy rate for each covered program for a fiscal year is the following: 40 percent for fiscal year 1995, 30 percent for fiscal year 1996, 20 percent for fiscal year 1997, 10 percent for fiscal year 1998, and 5 percent for fiscal year 1999. ``(b) Covered Programs.--The covered programs to which subsection (a) applies are the credit reform program accounts covered by the Federal Credit Reform Act of 1990. ``(c) Estimates.--The subsidy rates for a fiscal year shall be determined on the basis of estimates made by the Director of the Congressional Budget Office.''. (2) Section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by inserting after the item relating to section 507 the following new item: ``Sec. 508. Maximum Federal credit subsidy rates.''. (c) Point of Order.--Section 301 of the Congressional Budget Act of 1974 is amended by adding at the end the following new subsection: ``(j) It shall not be in order in the House of Representatives or the Senate to consider any concurrent resolution on the budget for any fiscal year that would allow the maximum permissible subsidy rate (as set forth in section 508) for any covered program for that fiscal year to be breached.''. (d) Allocations.--(1) Section 602(a)(1)(A) of the Congressional Budget Act of 1974 is amended by striking ``and'' at the end of clause (ii), by striking the comma and inserting ``; and'' at the end of clause (iii), and by inserting after clause (iii) the following new clause: ``(iv) total credit authority (that does not cause the maximum permissible subsidy rate (as set forth in section 508) for any covered program to be breached);''. (2) Section 602(a)(2) of the Congressional Budget Act of 1974 is amended by striking ``and'' at the end of subparagraph (B), by inserting ``and'' at the end of subparagraph (C), and by inserting after subparagraph (C) the following new subparagraph: ``(D) total credit authority (that does not cause the maximum permissible subsidy rate (as set forth in section 508) for any program to be breached);''. (e) Contents of Budget Resolutions.--Section 301(a) of the Congressional Budget Act of 1974 is amended by striking ``and'' at the end of paragraph (6), by striking the period and inserting ``; and'' at the end of paragraph (7), and by inserting after paragraph (7) the following new paragraph: ``(8) for purposes of enforcement of section 508, the total credit authority for each covered program, but which total shall not cause the maximum permissible subsidy rate (as set forth in that section) for that program to be breached.''. SEC. 5. EFFECTIVE DATE. This Act and the amendments made by it shall apply with respect to fiscal years beginning after the date of enactment of this Act.
summary: Federal Credit Cost Reduction Act of 1994 - Amends the Federal Credit Reform Act of 1990 to include administrative costs (which, currently, are expressly excluded) in the estimated long-term costs to the Government of direct loans and loan guarantees. Amends Federal law to require the President's annual budget to contain a separate listing of administrative costs for direct loans and loan guarantees on a cash accounting basis and an appendix of such costs by program, by agency, and for the Government. Establishes maximum permissible subsidy rates for each credit reform program account. Reduces such rates from 40 percent for FY 1995 to five percent by FY 1999.