### Question
How is the term subsidy amount defined?


### Answer
The term **subsidy amount** is defined in *33 U.S.C. § 3901* as the following:

> the amount of budget authority sufficient to cover the estimated long-term cost to the Federal Government of a Federal credit instrument, as calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays in accordance with the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)

#### Citation:
  - *33 U.S.C. § 3901*
  - Heading: **CHAPTER 52-WATER INFRASTRUCTURE FINANCE AND INNOVATION**

