What it is
The Congressional Budget Office (CBO) is a nonpartisan agency that provides objective, timely, and nonpartisan analyses to Congress regarding budgetary and economic issues. Established in 1974, the CBO produces cost estimates for proposed legislation, analyzes the President's budget proposals, and publishes reports on economic and budget outlooks. Its work helps lawmakers make informed decisions about federal spending and taxation without political bias.
CBO reports are critical for understanding the potential fiscal impact of legislation, influencing congressional debate and public perception. For example, a CBO score indicating a large increase in the national debt for a proposed bill can sway votes or spark market concern over future government finances. Investors follow CBO analyses to gauge the economic viability of proposed policies and their potential effects on interest rates, inflation, and specific industries.
Why it matters
CBO analyses provide independent fiscal assessments of proposed laws, offering crucial context for understanding how legislative actions might impact the economy and markets.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice