Scott and Cloud Introduced Debt-Servicing Cost Legislation

Proposed bills would require the CBO to include debt-servicing costs in official budget estimates for new legislation.

Updated on Sept. 24, 2026 in Legislative Policy

Bold flat-color editorial illustration featuring a stone plinth and column, symbolizing the structural weight of federal fiscal policy. — Senator Rick Scott and Representative Michael Cloud introduced legislation requiring the Congressional Budget Office to include debt-servicing costs in federal budget estimates. AI Illustration. Upload story photo >

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Should federal budget estimates be required to include the cost of servicing the national debt?

Senator Rick Scott and Representative Michael Cloud have introduced legislation aimed at increasing transparency regarding the cost of federal spending. The proposed bills mandate that the Congressional Budget Office and Joint Committee on Taxation include interest payments in their budget estimates.

Why it matters

The sponsors seek to provide lawmakers and the public with a clearer picture of how spending affects the national debt by accounting for interest costs that typically represent 20% to 25% of a bill's total impact over 10 years.

Senator Rick Scott introduced S.5442 on September 17, 2026, while Representative Michael Cloud introduced the companion bill H.R.10327 on September 10, 2026. The legislation follows a period where net interest on the public debt exceeded $1.02 trillion in the first 11 months of fiscal year 2026.

The players

Rick Scott

Senator Rick Scott is a Republican representing Florida who has focused on fiscal accountability and federal spending reform.

Michael Cloud

Representative Michael Cloud is a Republican from Texas who serves on the House Budget Committee.

Congressional Budget Office

The Congressional Budget Office is the federal agency responsible for providing nonpartisan budget and economic analyses to Congress.

Joint Committee on Taxation

The Joint Committee on Taxation is a nonpartisan congressional committee that provides tax-related policy analysis and legislative support.

House Budget Committee

The House Budget Committee is responsible for developing the annual federal budget resolution and monitoring fiscal policy.

The details

The bills add a new section to the Congressional Budget Act requiring the inclusion of debt-servicing costs in fiscal estimates for new spending. While the CBO previously estimated that implementing this reporting requirement would require few additional resources, legislators anticipate pushback regarding potential mandates to offset those interest costs.

Representative Cloud began introducing versions of this measure in 2019.
The House Budget Committee voted 17-7 to report an earlier version in May 2024.
Representative Michael Cloud reintroduced H.R.10327 on September 10, 2026.
Senator Rick Scott introduced S.5442 on September 17, 2026.
The official text of S.5442 was released on September 24, 2026.

Political Context

Opponents and some budget experts argue that forcing lawmakers to offset debt-servicing costs could impose overly restrictive burdens on essential legislation. This pushback highlights the ongoing tension between transparency advocates and those concerned about the practical functionality of the legislative process under the Congressional Budget Act.

If enacted, this policy would change how lawmakers evaluate the total impact of federal spending, potentially discouraging certain proposals that carry high interest costs. Taxpayers would receive more transparent information regarding how federal borrowing costs compare to the scale of individual income tax returns.

The takeaway

The proposed legislation highlights a growing emphasis on accounting for the full cost of debt in an era of trillion-dollar deficits. Transparency in budget reporting remains a central point of debate for those seeking to curb long-term government interest expenses.