Congressional Budget Office facts for kids

Quick facts for kids
Congressional Budget Office

Logo of the CBO
Agency overview
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	Phillip Swagel, Director Mark Hadley, Deputy Director

The Congressional Budget Office (CBO) is a special agency that works for the U.S. Congress. It is part of the United States government's legislative branch. The CBO's main job is to give Congress important information about the budget and the economy.

This agency was created to be completely fair and unbiased. It was inspired by a similar office in California. The CBO was officially started by a law called the Congressional Budget and Impoundment Control Act of 1974.

Even though some politicians might disagree with the CBO's findings, experts generally agree that the CBO is fair. They believe its predictions about how new laws will affect the budget are reliable.

History of the CBO

The Congressional Budget Office was created on July 12, 1974. This happened when President Richard Nixon signed a new law. The CBO officially started its work on February 24, 1975. Alice Rivlin was its first director.

The CBO was created because of a disagreement between President Nixon and Congress. Congress wanted to have its own way to understand the country's money. They wanted to make sure they had their own experts. This would help them make smart decisions about the budget. It also meant they didn't have to rely only on the President's budget office.

Since it began, the CBO has become a very trusted source. Many people, including Congress and the public, see it as the main place for budget and economic information.

What the CBO Does: Its Mission

The Congressional Budget Office is a neutral agency. This means it does not favor any political party. Its goal is to provide "independent analyses" of money and economic questions. This helps Congress make decisions about the national budget.

Every year, the CBO publishes reports. It also estimates how much proposed new laws will cost. It does all this without telling Congress what policies they should choose.

The CBO's work is similar to other important groups. For example, it helps Congress understand spending. Another group, the U.S. Congress Joint Committee on Taxation, helps Congress understand tax money. The CBO also predicts how new laws might affect the national debt.

How the CBO Works

The CBO regularly sends reports to special committees in the House and Senate. These reports give a basic idea of what the federal budget will look like. They publish an annual Economic and Budget Outlook and an update later in the year.

Each year, the CBO also looks at the President's budget ideas. It then gives its own analysis of those plans. The CBO often shares its findings with Congress. It also answers questions from members of Congress.

CBO's Different Teams

The Congressional Budget Office is organized into nine different teams. Each team focuses on a specific area:

• Budget Analysis
• Financial Analysis
• Health Analysis
• Labor, Income Security, and Long-Term Analysis
• Macroeconomic Analysis
• Management, Business, and Information Services
• Microeconomic Studies
• National Security
• Tax Analysis

The CBO Director

Ford House Office Building, the main office for the CBO

The leader of the CBO is called the Director. The Speaker of the House and the President pro tempore of the Senate choose the Director together. They consider suggestions from the budget committees.

A Director serves for four years. There is no limit to how many terms a Director can serve. However, either the House or the Senate can remove the Director if they choose. If a Director's term ends, they can stay in the job until a new Director is chosen. The current Director is Phillip Swagel.

See also

• Minimum wage in the United States
• United States Congress
• United States federal budget
• Office of Management and Budget
• Compare:
  • Legislative Analyst's Office (California)
  • Parliamentary Budget Office (Australia)
  • Parliamentary Budget Officer (Canada)
  • National Assembly Budget Office (The Republic of Korea)
  • Office for Budget Responsibility (United Kingdom)