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1 Direct Spending and Revenue Effects of H.R. 6395, the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 1 (July 8, 2020)

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O       CONGRESSIONAL BUDGET OFFICE                      Phillip L. Swagel, Director
        U.S. Congress
        Washington, DC 20515


                                    July 8, 2020


       Honorable Adam Smith
       Chairman
       Committee on Armed Services
       U.S. House of Representatives
       Washington, DC 20515

       Re:   Direct Spending and Revenue Effects of H.R. 6395, the William M.
             (Mac) Thornberry National Defense Authorization Act for Fiscal Year
             2021

       Dear Mr. Chairman:

       The Congressional Budget Office has completed an estimate of the direct
       spending and revenue effects of H.R. 6395, the William M. (Mac)
       Thornberry National Defense Authorization Act for Fiscal Year 2021, as
       ordered reported by the House Committee on Armed Services on July 1,
       2020. This estimate is based on the Committee Print 116-57 that was posted
       to the website of the House Committee on Rules on July 7, 2020. Enacting
       the bill would have an insignificant effect on net direct spending and
       revenues, CBO estimates. Our complete cost estimate of H.R. 6395,
       including a discussion of discretionary authorizations, will be provided
       shortly.

       Section 1101 would provide 12 weeks of paid leave to employees of several
       federally funded agencies following the birth, adoption, or foster placement
       of a child. Those changes would increase costs by allowing employees to
       use paid leave in situations where they are currently using unpaid leave, or
       by allowing employees who currently use paid annual and sick leave in
       those situations to instead defer that leave for use at a later date. Employees
       who accrue more unused sick leave would receive higher federal pensions
       if they retire. However, because relatively few employees who would use
       that leave will be eligible to retire before 2031, those additional payments
       would increase direct spending by less than $500,000 over the 2021-2030
       period, CBO estimates.

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