Description:
H.R. 5576 would codify and broaden existing sanctions on foreign persons and agencies of foreign states that are responsible for or provided support for harmful cyber-attacks on the United States. Several executive orders have imposed sanctions related to similar activities; those sanctions include freezing assets held in the United States and prohibiting entry into the United States. The bill would broaden applicable sanctions to include withdrawing or suspending foreign assistance, voting against loans from international financial institutions, prohibiting federal procurement, denying exports licenses, and blocking financial transfers and payments. Implementing H.R. 5576 would increase administrative costs at the Department of State and the Department of the Treasury. However, based on the costs of implementing similar sanctions, CBO estimates that implementing the bill would cost less than $500,000 over the 2019-2023 period. That spending would be subject to the availability of appropriated funds. Under H.R. 5576, the President could limit foreign assistance to governments that he determines have supported harmful cyber-attacks on the United States; however, CBO has no basis for estimating such amounts because we cannot determine whether, when, or in what amounts such restrictions might be imposed. Enacting H.R. 5576 would increase the number of people who would be subject to civil or criminal penalties. Penalties are recorded as revenues, and a portion of those penalties can be spent without further appropriation. Because enacting the bill would affect direct spending and revenues, pay-as-you-go procedures apply. However, CBO expects H.R. 5576 would affect very few additional people and thus would have insignificant effects on both revenues and direct spending. CBO estimates that enacting H.R. 5576 would not significantly increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2029.
