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CBO Report – H.R. 3713, Sentencing Reform Act of 2015

H.R. 3713 would amend federal law to change the prison sentences associated with certain offenses. Based on information provided by the Department of Justice (DOJ) and the U.S. Sentencing Commission (USSC), CBO estimates that implementing the legislation would reduce the cost of incarcerating offenders and would lead to a reduction in discretionary costs to DOJ of $338 million over the 2017-2021 period and $769 million over the 2017-2026 period, assuming future appropriation actions consistent with the projected reduction in prison population. CBO estimates that enacting H.R. 3713 would result in the release of thousands of prisoners from federal prisons earlier than would occur under current law. CBO expects that upon release many of those individuals would receive federal benefits from a variety of federal programs including Medicare, Medicaid, and health insurance marketplaces; Social Security; Supplemental Security Income (SSI); and the Supplemental Nutrition Assistance Program (SNAP). As a result, CBO and staff of the Joint Committee on Taxation (JCT) estimate that enacting the legislation would increase direct spending by $259 million and reduce revenues by $8 million over the 2017-2026 period. Pay-as-you-go procedures apply to this legislation because it would affect direct spending and revenues.CBO estimates that enacting H.R. 3713 would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2027. H.R. 3713 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.”

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