Gluesenkamp Perez, Bipartisan Colleagues Introduce Bill to Ensure Congress Evaluates Impacts of Interest on National Debt

Today, Rep. Marie Gluesenkamp Perez (WA-03), along with  Reps. Michael Cloud (TX-27), Dan Meuser (PA-09), Jared Golden (ME-02), Ed Case (HI-01), Tom McClintock (CA-05), introduced the bipartisan Cost Estimates Improvement Act to bring more transparency to government spending. The bill will require Congress to consider interest payments before approving new spending.

With the national debt now over $36 trillion and annual interest payments exceeding $1 trillion, our country is spending more on debt payments than on national defense. Yet, Congress still doesn’t fully account for these costs when making financial decisions.

Right now, the Congressional Budget Office (CBO) calculates how much a bill will cost upfront but does not include the long-term cost of interest in budget estimates. This means lawmakers and taxpayers don’t get the full picture of how much new spending will add to the national debt. The Cost Estimates Improvement Act closes this loophole by making sure interest costs are included in official estimates.

“Servicing costs for our national debt make up one of the largest parts of our worsening deficit. Nevertheless, estimates of these costs aren’t included in the budget analysis of each piece of legislation considered by Congress,” said Rep. Gluesenkamp Perez. “As lawmakers assess a bill’s long-term impact on our national debt, it’s important we’re seeing the full picture. Our bipartisan legislation will ensure debt servicing effects are included in the cost estimates of individual bills – that way Congress can plan for our future and avoid passing on more debt to our children.”

Last month, the Congresswoman’s bipartisan FULL Act was signed into law to cut wasteful federal spending on unused government office space. In May, Rep. Gluesenkamp Perez was recognized as a 2024 Fiscal Hero for leading bipartisan efforts to take on the national debt, and she has repeatedly urged her colleagues to work toward fiscal stability.

“The American people deserve a government that operates with more transparency, not less,” said Rep. Cloud. “Interest payments on our national debt have now surpassed $1 trillion for the first time – outpacing even our entire defense budget. This staggering reality is a direct consequence of Washington’s reckless spending. Yet, Congress routinely passes legislation without accounting for the full cost, misleading taxpayers about the financial burden being placed on future generations. That’s why I introduced the Cost Estimates Improvement Act – to require the Congressional Budget Office to include debt-servicing costs in its estimates, ensuring lawmakers and taxpayers alike have a full picture of the long-term impact of Washington’s spending habits. If we don’t get serious about fiscal responsibility now, the consequences will only grow more severe.”

“Taxpayer dollars should fund efficient, results-driven spending bills – not those that are perpetually bloated,” said Rep. Meuser. “The Cost Estimates Improvement Act takes a critical step toward ensuring Americans have a clear and accurate picture of how their money is being spent. This bill mandates exact cost estimates for new legislation, including debt servicing, helping lawmakers consider the long-term impacts of their decisions. It’s a commonsense reform that promotes transparency, strengthens accountability, and helps curb the unchecked burden of reckless government spending.”

“Interest payments on the national debt are a massive expenditure and Congress needs to be fully informed of those long-term costs if we want to be truly fiscally responsible,” said Rep. Golden. “Requiring estimates on the interest costs of legislation is a simple way to facilitate better budgeting.”

“We applaud Rep. Michael Cloud’s initiative in introducing the Cost Estimates Improvement Act, which would factor interest costs in the budget estimates for legislation,” said Maya MacGuineas, President of the Committee for a Responsible Federal Budget. “Not considering interest on the debt in the official scores of legislation misses a real and important cost, particularly when offsets would be implemented down the road. This bill would add a missing piece to help the American public and future generations get a full accounting of what legislation costs.”

Full text of the bill is available here.