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Code · BILL · 117th Congress · S. 1926 (Introduced in Senate) — To establish a Federal Capital Revolving Fund to assist Federal agencies in purchasing capital assets, and for other... · Sec. 2

Sec. 2. Findings; purpose

286 words·~1 min read·/bill/117/s/1926/is/section-2·

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Congress finds that— sudden increases in funding for purchases of federally owned capital assets are difficult to fit within funding available under discretionary spending limits; failure to recapitalize or replace Federal capital assets on a regular schedule ultimately increases the cost to taxpayers of delivering services; in appendix J, entitled Principles of Budgeting for Capital Asset Acquisitions , of Circular A–11, the Office of Management and Budget recommended combining assets in capital acquisition accounts to accommodate spikes in funding capital acquisitions; in the document entitled Budgeting for Federal Investment and dated April 15, 2021, the Congressional Budget Office states that there is, a budgetary incentive to opt for short-term leases even if they are more expensive than long-term leases or purchases, and identifies a Federal Capital Revolving Fund as a potential solution; and the document of the Government Accountability Office numbered GAO–14–239 found that budgeting for federally owned capital assets could be improved by creating a Government-wide capital acquisition fund with upfront mandatory funding— to pay for projects estimated to exceed a certain total-cost threshold; and to be repaid by annual discretionary funding provided by agency subcommittee appropriators.
The purpose of this Act is to improve the means by which the Federal Government budgets for expensive, federally owned, civilian facilities by— establishing a mandatory revolving fund to pay the upfront costs of acquiring those facilities in a manner that ensures that the acquisition costs do not compete with smaller purchases and operating expenses for funding under applicable discretionary spending limits; and requiring agencies to use discretionary appropriations to replenish the revolving fund referred to in paragraph
(1)over a several-year period as the agencies use the facilities described in that paragraph to meet Federal mission needs.
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