H.R. 1764, Aligning SEC Regulations for the World Bank’s International Development Association Act

H.R. 1764 would exempt the International Development Association at the World Bank from the requirement to register securities that it issues or guarantees with the Securities and Exchange Commission (SEC). The exemption would not take effect if the Department of the Treasury determines that the association has provided financial assistance to any country identified by the Department of State as supporting terrorism. The SEC could require the association to file additional reports and, in consultation with the National Advisory Council on International Monetary and Financial Problems, suspend the exemption at any time.

Using information about the cost of similar provisions, CBO estimates that it would cost the SEC less than $500,000 to update rules and process any additional disclosures by the Association. Moreover, because the SEC is authorized to collect fees each year to offset its annual appropriation, CBO expects that the net effect on discretionary spending over the 2025-2030 period would be negligible, assuming appropriation actions consistent with that authority.

If the SEC increases fees to offset the costs associated with implementing the bill, H.R. 1764 would increase the cost of an existing mandate on private entities required to pay those assessments. CBO estimates that the incremental cost of the mandate would be small and would fall well below the annual threshold for private-sector mandates established in the Unfunded Mandates Reform Act (UMRA) ($198 million in 2023, adjusted annually for inflation).

H.R. 1764 contains no intergovernmental mandates as defined in UMRA.

The CBO staff contacts for this estimate are Aurora Swanson (for federal costs) and Rachel Austin (for mandates). The estimate was reviewed by H. Samuel Papenfuss, Deputy Director of Budget Analysis.